It will be correct to say that money is equivalent to fuel when it comes to running our daily life. It will become very difficult to manage the day to day expenses if you are not earning. Only managing expenses is not enough now, it is equally important to manage your earnings smartly. We should start planning and investing now to have a financially secured future. While planning for our future, we mostly forget about possible breaks that we can take because of short-term or long-term disability issues that can hamper our savings and income temporarily or permanently. It is important that you consider these small yet financially important breaks while planning your investments. There is an insurance policy that can help in such conditions known as Disability Insurance. These plans give you financial assistance equivalent to your net earnings in case you are unable to work because of any permanent or temporary disability.
Most of the individuals’ employed or self-employed in Canada have Employment Insurance as it is mandatory in the country. Employment insurance has limits when it comes to amount and time period. But it is not enough if you are unable to work for a longer period of time. Researches show that 1 out of 3 Canadians is at high risk of getting seriously injured and high possibility of remaining unemployed for more than 90 days continuously. It is important to have the risk of unemployment because of disability is been covered under disability insurance.
The income we are earning is also our asset and disability insurance helps us ensure that. In Canada, the research found that 22% of citizens above 15 years of age have at least one disability. Disability insurance will give you a monthly benefit if you are not able to work and lose your income because of some accident or disease. You will be shocked to know that in Canada disabled people employment rate is only 59%.
The insurance covers two types of disabilities and they are:
- Short-term Disability Insurance: This type of insurance give you coverage for a maximum of 120 days. Short term disability in Brampton is mostly given by your employer and a type of group benefit. However, if you want you can purchase it individually as well.
- Long term Disability Insurance: This type of insurance give coverage starting from a definite waiting time period or after short-term disability insurance till you are 65 i.e. retirement age. Sometimes your employer gives it to you, it is group insurance or you can also purchase it individually.
While purchasing any type of disability insurance it is important that you know under the policy what all is defined under term disability and what conditions are covered by the policy. Along with that, it is also important that you know how much amount you will get and for how long. It is important that you have an estimate of your monthly expenditure including any loan instalments or credit or debit card payments. The monthly amount you are getting from the insurance must be enough to fulfil your monthly expenditure. It is one of the important points to consider while purchasing disability insurance. Sometimes employers also provide you with short-term or long-term insurance. These are group insurance. If the amount given under the policy does not fulfill your monthly expenses then you must purchase insurance policy individually. The employer’s insurance mostly covers specific types of works and workers engaged in those works. It is valid only during working hours and worker’s compensation will be given if an injury happened while working. The benefits will be given only for 15 weeks and not after that. If you need coverage beyond that, you have to purchase disability insurance.
How disability Insurance is Different?
- It provides monthly compensation in place of your monthly income
- The amount you receive will be equivalent to 65- 80% of your annual salary in monthly instalments
- You can easily get insured even if you have medical issues.
- Can provide coverage for shorter as well as long time periods depending upon the plan you selected
- Other insurance plans cover the cost of medical bills related to critical illness or accident
- Long-term disability insurance also covers the cost of extra care you will need in case you become fully dependent
- You will not be financially dependent on anybody even if you are not fit to work because of disability
- Financial stability and mental peace even after the loss of regular income.
There are various factors that you should consider before making the final decision of buying insurance. You can take the assistance of insurance or financial advisers to have more clarity on important aspects of short-term and long-term disability insurance in Brampton. You must discuss all the available insurance options depending upon your requirements. They will help you in deciding the most suitable coverage and time period you should go for depending upon your financial goals.
Sehajannat Financial services inc. is one of the leading financial service providers and work with the goal of transforming their client’s financial goals into reality. They have an experienced team of financial experts who guide you throughout the procedure and help you make correct decisions keeping in mind your financial targets and expense budget. They first understand their client’s needs and provide customised financial services accordingly. The disability insurance offered by the company helps you in getting coverage depending upon your need. Sehajannat Financial follow ethical behaviour, maintain transparency in their processes and provide excellent after-sales services.