Finding The Best Disability Insurance Canada

Insurance policies normally help to protect policyholders from all the risks they face in everyday life. Disability insurance, for instance, helps to ensure that the policyholder will have a decent income even when they are disabled. This disability can be either short-term or long-term, and may be caused by a disease or an accident. Imagine getting involved in an accident while driving or at work. If you will need several months to fully recover before going back to work, who will pay your bills and provide for your family? Disability insurance Canada residents should know, can provide them with enough income, from benefits, throughout the entire disability period.

Types of Disability Coverage

1. Short-Term Disability Coverage

This is an insurance policy that provides benefits to the policyholder for a period of up to 6 months. It is important to note that every employer is different. The best employers normally have a group disability coverage for all their employees, but others do not. It is important to also note that employers are not required to provide paid sick leave, even if the employee has been injured or is sick. That is why disability insurance is incredibly important. If you are employed, be sure to talk to your human resources manager about any of the plans they may have for employees as well as the benefits that you will get if you are disabled.

2. Long-Term Disability Coverage

This is insurance coverage offering benefits to the policyholder for up to 2 years. If your sickness or disability has made it impossible for you to return to your previous job for a period longer than six months, your insurer will pay disability benefits of around 60-70% of your normal income. It is important to note, however, that the disability benefits can continue past the 2-year mark if you are not able to do any type of job.

Please note that long-term disability benefits are only paid when short-term disability benefits end. If your employer offers paid sick leave, the long-term disability benefits will only be provided at the end of the paid sick leave offered by your employer; that is if you are still unable to return to work.

Finding the Right Disability Insurance in Canada

If you are self employed, or you’re employed but your employer does not offer disability insurance, you can buy your own. The most important factors to consider when comparing policies offered by different insurers include: terms and conditions, especially exclusions; premiums charged; whether you will be required to continue paying premiums when receiving benefits; and benefits offered, in terms of the amount paid out.