Disability Insurance

How would you continue to pay the bills if an accident or illness prevented you from earning an income?  The financial security and piece of mind you get from owning your own insurance contract that will replace, tax free, a portion of your income should you be unable to work is irreplaceable. Without this coverage how would you manage to maintain your lifestyle?

Without warning an accident or illness can deprive you of your earning power.  Here are the numbers:

  • 1 in 3 people, on average, will be disabled for 90 days or longer at least once before age 65.
  • The average length of a disability that lasts over 90 days is 2.9 years.

Source: Compiled by Canada Life based upon CIA 86-92 Aggregate Table & 1985 Commissioner's Disability Table A (Experience Table)

...What about Your Income?  You Insure Everything Else...

You have to insure your home, your car, boat, cottage - what else?  Your income makes all of those things possible.  However you are not forced to insure your income.  Why wouldn't you though, since your abiliity to earn an income is your most important asset.  If you do not have group long term disability insurance through an employer, then this is a solution for you.

What Type of Disability Insurance is Available?

There are many types of disability insurance available to protect against various risks.  The two most common types are Personal Disability Insurance and Business Overhead Disability Insurance. 

Personal Disability Insurance

Since each person has a specific need and budget, you are able to design a plan to meet those criteria.  There are many flexible policy design options. First determine how much coverage is required using the disability needs calculator from Canada Life.

There are many ways to personalize the program to your situation including:

  • Waiting period - no benefits payable until after this is satisfied - 30, 60, 90, 120, 180, 365, 730 days
  • Benefit Period - how long benefits are paid - 2, 5, 10, years, to age 65
  • Other riders and benefits that can be added to the plan to protect against inflation, allow add on coverage without medical evidence, return of premium if you don't claim, lifetime accident etc.

Business Disability Insurance

Just because you are unable to go to work doesn't mean your expenses will stop.  The fact that you are not at work may mean that your revenue will drop, but the bills will keep coming.

Use this business expense calculator from Canada Life to calculate your ongoing expenses that will have to be paid whether you are at work or not.  In general Business Overhead Expense Insurance will reimburse you for business expenses other than the income of someone related to you by blood or marriage.

Other types of business disability insurance include Key Man Disability Insurance and Disability Buy Sell insurance.

Please contact us for more information.