Why Get Disability Insurance

Why Get Disability Insurance

With all the different types of insurance you can get, it can seem a little overwhelming when you need to choose one policy. One type of insurance is very helpful if you become injured and unable to work. For those of us who provide for a family, this could be the policy we need.

What is Disability Insurance?

Disability insurance is a form of insurance, also known as income protection insurance. It is a policy designed to help you and your loved ones be financially protected if you are ever disabled. Disability insurance provides income replacement until you are ready to go back to work. Disability insurance replaces a portion of your paycheque using  a percentage of your usual income, around 60% to 85%. Disability can be due to either accident or illness. You will benefit from this insurance payment until you can work again, or until the coverage period ends. Payments can be a weekly or monthly.

Why Should I get Disability Insurance?

If you have a regular income, you should have disability insurance, especially If you have rent or mortgage to pay, or support other family members. You should have coverage in the event you sustain an injury, or get an illness that prevents you from working.

Factors that Affect Cost of Disability Insurance

There are many reasons to have disability insurance, besides accident or illness. There is also mental illness, musculoskeletal issues and poisoning. Benefits and premiums are affected by the following factors: gender, age, family health history, physical condition and occupation.  If you have other coverage, Disability Insurance payments may be reduced to offset the other benefits.

 Types of Disability Insurance policies available:

  • Long Term: provides benefits for issues lasting months to years, or to age 65
  • Short term: covers injuries for two years or temporary issues. You will recover and go back to work.
  • Own occupation: You cannot perform duties of your own job full time.
  • Any occupation: benefits are only paid if you are not able to do any part of the job for which you are qualified.

Are Self-Employed Eligible for Disability Insurance?

You may be eligible for SSDI (Social Security Disability Insurance.) You pay or have paid social security taxes at some point in your career. There are policies similar to regular employee policies. You can decide if you need short- or long-term coverage, or even both. Career assessments based on work hazards and if you could return if injured will be done. As with all policies, income, age, health, and gender, are all factors involved.

If you are interested in getting a Disability Insurance policy, contact your trusted insurance broker at Harpreet Puri today. Let your broker guide you in your search for the right policy.