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Everything You Should Know About Disability Insurance In Canada

Disability insurance is a good choice because it can ensure that you can support yourself even when you cannot work. Your doctor will often ask you to take time off from work if you have a severe condition, such as after a heart attack or broken arm.

If you do not have disability insurance, you may not manage to pay your bills and may have problems paying groceries in your home. Your family needs you, and even disability insurance ensures you can provide for them even when you cannot work.

Who Should Get Disability Insurance?

Everyone, as long as they make a regular income, should have disability insurance. Whether you have a job or are self-employed, disability insurance is necessary.

Bear in mind that many people in the country do not have enough money in their accounts to keep them going if they cannot go to work. To ensure that you can manage to pay the bills and support your family, make sure you get disability insurance.

What Does Disability Insurance Cover?

There are several types of accident and injury situations covered by insurance companies.

Work-related Injuries

Insurance covers such as WSIB cover work-related injuries. Work-related injuries include injuries sustained while lifting items in the office or doing any other thing for your employer.

If you are injured and cannot go to work, you can get payment from such a cover to sustain yourself.

Injuries During And After Work

Private insurance companies cover you when injuries occur when you are working or not working.

That ensures that even if you are not injured at home and cannot go back to work for a while, you are protected.

How Much Disability Insurance Do I Need?

When choosing an insurance policy, make sure that you consider your salary and your monthly expenses. That is because the insurance company you talk to will consider your income before the accident when paying your benefits.

They also use the following numbers to determine your benefits.

  • Benefits As An Income Percentage

The benefit payout is done in terms of a percentage of your income. Most Insurance companies can pay you a minimum of 50% and a maximum of 85% of your monthly gross income. The amount you get must be sufficient to support your family.

  • Benefits Cap

All insurance payouts have a cap; for instance, your insurer can cap your benefits at 6000 if you were making 9000 a month. Bear in mind that benefits from disability insurance are tax-free.

  • Length Of Benefits

Length of benefits refers to how long you will keep receiving payment after your injury. Usually, it is until you go back to work or when you apply for retirement benefits.

  • Waiting Period

Your insurance provider will have a waiting period, after which you will start to receive your benefits. The standard waiting period is 90 days.

Conclusion

Disability insurance is essential and will supplement your income when you cannot work. Take your time to choose the right policy for you to ensure you are comfortable in case of injury.

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