Disability Insurance – The Basics

This type of insurance protects your earned Income (your pay cheque, but not income from investments, real estate rent, or pension income- this is all “unearned income”.)

There are different types of disability polices out there.

Some policies cover disabilities caused ┬áby injuries only (“accident plans”), or others that add in illnesses – whether it be an unfortunate cancer or critical illness diagnosis, or burnout caused by excess stress or nervous breakdowns.

The amount of benefit you are eligible for is based on your net earned income (your “taxable business income net of expenses, for self-employed people). You cannot make more net income while you are off work than you would make while working. Because you pay your premiums with after tax dollars the benefit amount is not taxable.

Companies can have different options for you to pick from. You can have a choice for your waiting period (the amount of time that has to pass before you can submit a claim) and how long they will pay you your benefit (2 years, 5 years, or even until age 65).

For example: 1st day injury or a waiting period of 30 days. It depends on you. What do you want and how much are you willing to pay for the protection. Do you have a financial reserve or not.

Premiums are decided by the type of work you do, your age, smoker or non smoker the type of coverage you would like. Not all policies are the same.

It is my job to help guide you through all of this.

For a free quote, please contact Arthur Guest 1-877-830-7000 or fill out a quote form online