Disability Insurance

Disability Insurance

A disability can be overwhelming if you cannot work and support your family by earning a regular income. In the case of a permanent disability, disability insurance protects individuals by replacing as much as 60% to 85% of their income. An illness or injury that prevents an individual from working temporarily. Disability insurance may be a part of your employment benefits, or you may get a disability insurance plan by contacting a life and health insurance advisor.

Overview of disability insurance in Canada

Self-employed persons can expect to get a range of benefits that can support business expenses by considering disability insurance. Employees may go for an individual plan of disability insurance. Before proceeding to shop for disability insurance in Canada, it is better to check with the employer for any existing disability insurance coverage. You may also consider group insurance schemes available with the alumni association, professional groups, or unions.

The following disability insurance options are available in Canada:

  • Individual disability insurance plans
  • Group disability insurance plans
  • Government plans
  • Special purpose plans

Disability coverage may also be available through auto insurance plans, long-term care or critical illness plans, creditor’s insurance plans available for credit cardholders.

Know important aspects of policy

It is necessary to find clarity about some fundamental aspects of the disability insurance plan before signing on the dotted line.

  • Disability insurance terms and conditions
  • Knowing the definition of disability
  • What are exclusions
  • What conditions can impact the plan of these are pre-existing
  • Benefits of disability insurance plans
  • How much amount will you receive every month
  • What about tax obligations
  • What is the waiting period before the benefits start
  • What about partial disability
  • Is a medical exam necessary to increase policy coverage?

Defining disability

You will come across varying definitions of disability if you check the plans of different insurance service providers. Some insurance companies also help individuals attend rehabilitation so that the person may join duties sooner.

  • Any occupation plan – As per the definition of Any Occupation, the person cannot perform any work. It may happen if the injuries prevent the individual from doing any work despite being suitable. Benefits of Any Occupation plan are not available if the individual takes up any other job from a different profession.
  • Own occupation – Regular or Own Occupation means the individual can work in another profession. A dentist may work as a lecturer if the disability prevents them from doing dental procedures. Some insurance companies may reduce the number of benefits if you accept another job from a different profession.

The Own Occupation Plan may change after a few years and convert to Any Occupation. Professionals who may receive a significantly lesser salary in another job should opt for their occupation disability insurance plan.

Disability claim filing

Know the claims process and deadlines because they may dismiss the claim if you miss the claim filing deadlines. Your insurance advisor will assist you in collecting the necessary documents for filing the claim. Your insurance documents should be easily accessible because someone like your insurance agent may have to get them in your absence.

The insurance company evaluates the claim by considering the provisions of the insurance plan. You will submit relevant medical evidence to support your claim. The role of your doctor or primary care provider is crucial in this situation. You can exercise your right to appeal in the event of claim dismissal. Consulting a knowledgeable insurance advisor will help you take the necessary steps.


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