What Is Disability Insurance and Why Do You Need It?

What Is Disability Insurance and Why Do You Need It? - Harpreet Puri

What Is Disability Insurance?

Disability insurance is a type of insurance coverage that provides income and financial stability in the event the policyholder cannot work due to a disability.

Different Kinds of Disability Insurance Policies:

If you become disabled, there are a range of disability insurance policies you can get:

Short-term disability insurance

If you are disabled for a short period, this policy is designed to replace 60-80 percent of your income (typically 3-6 months), or until you can get back to work.

Long-term disability insurance

This coverage is created to last for many years, even through your retirement, if needed. The coverage replaces 50 – 70 of your income for an individual policy. In case you are permanently disabled and can no longer work, this policy replaces about 40-60 percent under group long term disability.

Why You Need Disability Insurance?

Without disability insurance, workers and their dependents stand the risk to lose their homes and investments. Disability insurance is a source of income for individuals who cannot work because of a major illness or an accident that has left them permanently disabled. Below-mentioned gives you a better understanding of why you need disability insurance coverage.

  • One-third of employed Canadians become disabled for at least 90 days at some point in their career.
  • Disability insurance policy is for self-employed workers and those individuals who do not receive employer-paid sick leave.
  • You have other people depending on your earnings: If you are the sole earner in your family, a disability insurance policy safeguards you and your family from any financial strain.
  • Insurance policy makes sense if you are young and healthy too: Medical disasters and accidents can appear anytime irrespective of your age. If you happen to miss work, a disability insurance policy can help you maintain a steady stream of income. The younger you are, the cheaper and easier it is to buy such insurance policies.
  • If the individual has disability insurance through work, they can use the disability insurance to help cover the terms of the divorce decree.
  • Purchase disability insurance policy till the remainder of your working life.
  • It is an integral part of your financial plan as other types of insurance policies.
  • Work with an independent insurance agent like Harpreet Puri to help identify the best policy to suit your situation and needs.

Schedule an appointment with Harpreet Puri today!

Bottom line – yes, you need disability insurance. We must not take life for granted. An accident or illness can leave you permanently unable to work. Disability insurance can be a lifesaver if you do not have enough savings to cover your medical expenses. It also puts a financial burden on your family, who depend on your income for their livelihood if you do not have disability insurance coverage. Give Harpreet Puri a call today to find out more information or to schedule an appointment.