Disability
INSURANCE

Secure your most valuable asset.
Your ability to earn an income

Protection for yourself
and your loved ones.

There is an old question in insurance, and it goes a little something like this: if you had an ATM in your home and it printed money for your family, would you insure it?

Well believe it or not, this is you! Many people would tell you their most valuable asset is their home, but in most cases, it is their ability to earn an income. While Illness coverage focuses on serious conditions, disability focuses on injuries that prevent you from doing your regular work, regardless of whether you got injured on or off the job. Injury coverage can be tailored to fit your specific situation and not all coverage is the same.

Injury insurance protects your earning power. Let’s ensure those monthly payments keep coming, even in the worst of times.

Author: Aaron Moser

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Aaron@TheReFrameGroup.com

Disability Insurance FAQs

Is mental health covered by Disability Insurance?

If there is a prior history of mental health, there is a good chance it will not be covered in an individual insurance policy. However, many comprehensive disability plans will cover mental health if the condition arose after the policy was already in place.

I have a pre-existing condition; can I still get Disability Insurance?

Yes. However, if you have a pre-existing condition that occurred recently, that specific condition may not be covered in the contract.

Do I need a medical to get Disability Insurance?

Medicals are usually dependant on the benefit amount. Often Disability Insurance coverage does not require a medical.

How are Disability Insurance payments taxed?

Personal Disability Insurance coverage is usually paid with after-tax dollars and is therefore paid out tax-free. If a company pays for your Disability Insurance coverage with before-tax dollars, the benefit will then be taxed.

How much Disability Insurance cover should I get?

Every situation is different but the maximum amount of coverage that an insurer will typically cover is 2/3 of the applicant’s income.

How is Disability Insurance calculated?

Like all insurance coverage, Disability Insurance premiums are based on age and health. Other factors that affect premiums are:

Waiting period (the length of time between an injury and payout)
Payout amount
Occupation (eg. an accountant working in an office job would be considered a lower risk than a labourer on a construction site).

When does Disability Insurance payout?

At the time of application, the applicant can choose a “waiting period.” Common waiting periods are 0, 30, 60, and 90 days. The shorter the waiting period, the higher the premiums will be. This is because of the higher likelihood of a claim against the policy.

What does Disability Insurance cover?

At the time of application, you often have the choice of being covered for injury and illness leading to disability. The most common definition for a disabled person is if they are “unable to perform the regular duties of their occupation.” If the insured can satisfy that definition, typically they will receive their benefit.

Can Disability Insurance premiums increase?

Typically No. Most individual Disability Insurance policies lock in the premium at the time the policy is issued, for the entire life of the policy. Certain types of disability coverages (often referred to as “pooled” plans) may increase over time if there are a large number of claims made by policyholders.

Do I need Disability Insurance?

Most people in Canada have some form of disability coverage through their group plan at work. However, if your company group plan doesn’t offer Disability Insurance, or if you’re self-employed, then you should definitely consider coverage. It’s important to remember that your ability to earn an income is often your most valuable asset.

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Disability
INSURANCE

Protection for yourself
and your loved ones.