Disability Income Insurance
Disability Income Insurance provides periodic payments (like periodic income payments) to the person
insured when he or she is unable to work because of illness or injury.
It may pay benefits for disabilities resulting from accident only or for
disabilities resulting from both accidents and illness.
Insurance Policies are those available directly from
an insurance company and they offer the most extensive protection.
It may be very important for self-employed people, business owners,
part-time and contractor workers, who do not have access to the
plans sponsored by the government or employer. Professionals may be interested in this
insurance if they wish to have more protection in the case of
illness or accident.
Individual disability income insurance policies
may be designed
for different occupation classes. For example, there are special
plans suitable for
truck drivers, or
construction workers. They include disability insurance in the case
of only injury or both injury and sickness, a number of
additional benefits at relatively low cost.
your free quote from the Canada's major insurance companies and call at
416-493-0101 or 1-877-443-0101 for more information.
Government disability benefit programs
include the disability provisions of the Canada Pension Plan, Québec Pension Plan, Employment Insurance, Workers’ Compensation plans,
and provide very limited protection as part of Canada's social
There are Group Benefit Plans available
through an employer or an association. Usually, these plans include
short-term and/or long-term disability benefits.
Contact us, if you are
interested in Group
for small and family businesses or
quote for your group online.
Basic features of Disability Insurance Policies:
The elimination (waiting) period is a period
between the onset of a disability and the commencement of the
disability income benefit payments. If the insured recovers during
this period, no benefits are payable. The insurance companies offer
the applicant for disability insurance to select, at issue,
the waiting period, which may be
0, 14, 60 days and so on up to 720 days. The waiting period allows
to reduce the cost of insurance so that the policy could be
affordable: the longer the waiting
period the lower the disability insurance premiums.
The benefit period determines the number of month
or years that disability benefits will continue to be paid while the
insured is disabled. Insurance companies offer a wide range of
benefit periods. Typical ranges include benefit periods of two
years, five years, to age 65 or 70.
Short-term disability – the maximum Benefit Period
is from 1 to 5
years from the end of the elimination period.
Long-term disability – the minimum Benefit Period
is 5 years,
the maximum benefit is to the insured's age 70 ( or, in some limited
cases, for life).
You can choose the amount of benefit but it
cannot exceed your income. The insurance company will also consider
other sources of income that would be available to the applicant
even after he or she suffered a disability. The purpose of the
coverage is to replace earned income that is lost because of a
disability, not to make the disabled person better of financially as
a result of a receiving a disability income benefit. . The amount of
benefit may be based on Gross
Business Revenue (for self-employed people) or Earned Income.
Insurance companies assign a classification to
various categories of occupations based on the potential for work
related disabilities, as well as an individual's likely work
incentive or work ethic.
For example, a lawyer practicing corporate law
is more likely to have a lower exposure to a work related disability
than an assemble line worker. Also, because of the efforts
required to establish his or her career, the corporate lawyer will
most likely have more incentive to work and will likely experience
shorter periods of disability than the assembly line worker, whose
job is much less rewarding. So highest occupation classes
(professionals: doctors, lawyers, etc.) can obtain higher amounts of
coverage and, often, at a premium (per $1 000 of benefit) lower than
that charged to the lower classifications, who may obtain the same
This classification system is reflected
throughout many of the features and benefits of disability
Insurance companies define "disability" for the
purpose of providing benefits under a disability income policy in
different ways, depending on the occupation class assigned to the
The definition of total disability found in
virtually all individual disability contracts may be some version of
one of the following :
Own occupation: the insured cannot perform
the important duties of his or her own occupation while he/she can work
full or part-time in another occupation.
Regular occupation : the insured cannot
perform the essential duties of his or her regular occupation
and he or she is not engaged in any other gainful
may be reduced or discontinued if the insured begins to work in
another occupation while disabled in his her regular occupation,
but the insured is not compelled to work in another suitable
occupation simply because he or she is able to do so.
Any occupation : the insured cannot perform
the duties of any occupation, for which he or she is reasonably
suited by education, training, or experience; and he or she is
not engaged in any other occupation for remuneration or profit.
Often, policies include a combination of
the definitions mentioned above.
The insurance premiums (that is the cost of
insurance) depend on all the factors mentioned above, as well as the
insured's age, gender and smoke status.
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disability income insurance quotes:
Above is a brief description of
disability income insurance.
Contact us for
more information, rates and quotes, to choose the contract, which is
right for your needs.
If you have
any questions or concerns feel free