Approximately 3.8 million Canadians (13.7%) reported having a disability in 2012. The prevalence of disability increased with age, with the average onset age in the early 40s. With the increasing amount of Canadians suffering from a disability, it is very important to ensure that you are sufficiently covered in the event that it were to happen to yourself.
Many Canadians think that the Government will step in to take care of their financial needs in the event of a disability, but in reality the stats are:
Canada Pension Plan Disability – Average Monthly Payment in 2016 was $934.37
Employment Insurance (EI Benefits) – Maximum Weekly Payment in 2015 was $524.00
As you can clearly see, depending on your employment income the Government will most likely not be able to help you meet your income needs if you become disabled (whether it be short or long term).
Disability plans are very customizable depending on your needs. Typically, they will pay a monthly, tax free benefit to the insured person in the event that they cannot perform the daily duties of their regular occupation. Most plans have an elimination (waiting) period anywhere from 30 to 119 days. This means that you must have been off work for that duration of time before you will your benefit. The benefit will pay out for however long your policy states (e.g. until age 65).
For example, a $3,000 monthly benefit disability policy with a 60 day waiting period and a benefit to 65 will pay out $3,000 tax free on a monthly basis after 60 days of being diagnosed up until age 65 if the disability lasts that long.
Disability insurance is one of the foundations of a solid financial plan and should be seriously considered for any individual who can qualify.
Disability insurance is designed for working individuals until age 65. The ability to earn an income is one of the greatest assets an individual can have which makes having appropriate disability coverage extremely important.
Disability insurance pays benefits in the event of an accident or illness that requires you to not be able to perform the duties of your job. Policies are customizable and can be suited to fit your needs. Please contact us for more details.
You can use the monthly disability benefit however you wish. There are no limitations on what you can spend the money on.
Your benefit is received tax free on a monthly basis. The amount of your benefit is determined by the amount of coverage your policy provides for (up to a maximum monthly benefit of 66% of your net income).
Those who have claimed on disability have used the benefit for,
- Lifestyle Expenditures – ensure that you keep up with your financial responsibilities to maintain your lifestyle the best that you can
- Medical Treatments / Private Care – have the ability to afford medical treatments that are not covered by your Government or employer health program
- Freedom – spend the money in any matter that you like
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We work with over 20 Canadian insurance providers to ensure that we are offering the best life insurance products at the most affordable prices.