Did you know 1 in 3 people will become disabled for 90 days or long before the age of 65? The average length of a disability that lasts over 90 days is 2.9 years. How will your family pay its living expenses while you are disabled and not earning an income? Will your dream of retiring in comfort or retiring early be derailed because of a disability? How will your business fare while you are disabled?
The government programs in place today such as EI, CPP and WorkSafe BC can only provide limited income replacement and may have strict conditions in order to qualify. Likewise, group long-term disability benefits are usually capped at a maximum limit and benefit period, and will terminate when you switch employers.
An individual disability insurance policy can provide you with financial security by paying a monthly benefit if you are disabled and unable to work. It can help you meet your income requirements so you can focus on recovering and returning to an active life. It will also be portable in case you change jobs and the premium is guaranteed not to change until age 65.
Most disability insurance policies in Canada are non-cancellable, meaning as long as you continue to pay the premiums, the insurer must keep the policy in force and cannot increase premiums in the future. This guarantee comes at a greater cost than guaranteed renewable policies, which only specify that policies must be kept in force but does not require it to keep premiums constant as well.
Riders can be chosen for disability insurance policies such as return of premium, which returns part of your premium in the event that there is no claim. Choosing the right disability insurance with proper riders today will help protect you and your family from financial stress in case of a disability.
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