Living Benefits
Disability Insurance
You have worked hard to build your assets, take the time to protect them.
Focus on recovery not your finances
Individual disability insurance plans provide financial protection and rehabilitation support, reducing the stress and pain of recovering from an illness or injury.
Understanding the relative risks of various life events can help you create a plan.
Being prepared likely costs a lot less than you think.
The good news is that most people can recover from a disability.
What is disability insurance?
Disability insurance provides replacement income for those unable to work, protecting their dignity and ability to earn a living.
Life is full of decisions you make and do not make. Sometimes it presents exciting opportunities, and other times it is a surprise that we wish could turn back time.
You also work hard to ensure income for your lifestyle and retirement savings. We help you make an informed decision on how to take the necessary precautions to ensure what you have worked hard to achieve is safe and secure.
You insure your car, home, and have your money protected, but what about the safety of your most valuable asset?
When disability strikes, it can damage financial stability. What would you do if you lost your ability to earn an income? Where would the cash flow to support your lifestyle and family’s future come from?
The foundation of most people’s financial plan is income; nothing else is possible without it. It may take years to recover from financial loss.
Income protection helps make the road to recovery faster with income replacement and rehabilitation services to help you return to life sooner.
A personally owned individual disability plan replaces your income during a period of disability. It covers the gaps in your group plan, stays with you when employment changes, and solidifies your financial plan.
When insured, you would be able to keep your after-tax income and continue building toward your future because life does not end after a major injury or long-term illness; it may just be the most impactful disruption of your life.
It is important to remember that YOU are your most valuable asset.
Focus on recovery not your finances
Individual disability insurance plans provide financial protection and rehabilitation support, reducing the stress and pain of recovering from an illness or injury.
What are the types of disability insurance?
Policies are either noncancelable, meaning the carrier cannot change coverage without your consent, and guaranteed renewableb. An individual disability insurance offers better contractual guarantees at lower cost than ‘creditor’ coverage.
Non-cancellable
Contractually guaranteed non-cancellable coverage means an insurance carrier cannot cancel coverage, make changes because of a change in your health or risk, and the price cannot be increased during the period set out in the contract.
These plans are tailored to meet the needs of executives, incorporated professionals, and business owners.
Guaranteed renewable
Contractually guaranteed renewable coverage means insurance carrier is contractually bound to renew but can raise premiums for all in a certain class or category. The insurance carrier cannot cancel coverage, make changes because of a change in your health or risk.
It is better than creditor disability insurance since there is no requirement to requalify when loan or mortgage renews.
When are benefits taxable?
Who pays matters. When you pay the entire amount of the disability premium yourself, through an employer deduction or personal banking, your disability benefits will be tax-free.
When the benefit is tax-free
When you pay the entire amount of the disability premium yourself, your disability benefits will be tax-free. This may bring your income while on disability closer to your current take-home pay.
You will want to have enough to top up the gap in workplace benefits.
When the benefit is taxable
Employer-paid short-term disability or long-term disability premiums are not taxable benefits. But any disability benefits you receive from your employer will be taxable.
It means when your employer pays all or part of the disability premium, your disability benefits will be subject to income taxes.
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Questions
Here are some Frequently Asked Questions for consideration.
A financial safety net for your lifestyle
Most Canadians could not maintain their savings and larger financial plan without the income replacement and benefits disability insurance provides.
Disability insurance protects your most valuable asset; not your house, or car, but your ability to earn an income. It should be considered an important part of every financial safety net.
How Much Disability Insurance Do I Need?
The amount needed depends on a few things. First, what you apply for depends on current earned income, occupation, age, and gender.
Existing Coverage
If you have coverage with your employer, what is the maximum tax-free long-term disability (LTD) amount payable on your group plan?
What is the percentage payable when compared to your current income?
Do the benefits end after 2 years if you can perform the duties of any occupation, regular occupation, or your own occupation?
Lifestyle Needs
What is your current living cost for essentials like rent and mortgage, car payments, utilities, groceries, property tax, cell and internet, house maintenance, personal care items, family clothing, out-of-pocket healthcare cost, and childcare?
Financial Responsibilities
Who depends on your income? Are you a single parent or a non-custodial parent with financial responsibilities? Do you have parents or siblings who depend on your income?
Financial Resources
Do you need to have an income? The average time needed to recover from a disability is about 3 years.
Can you afford an absence that long? Would your savings or investments yield income for 3 years, or longer?
Personal Emergency Preparedness
If you have them, review your group benefits with the plan administrator or someone who specializes in individual disability to identify gaps you may want to cover personally with insurance, in an emergency savings account or both.
Group vs. Individual Coverage
Many employers offer full-time employees group disability coverage as a benefit to help provide some income in the event of disability.
A group plan can be supplemented with an individual disability income policy, or you can get coverage in the absence of a group plan.
Our advisors assist you in better understanding your current group coverage and whether adding individual coverage is recommended.
Employment Flexibility
Once you recover, would you be willing and able to change jobs? Relying on creditor or group benefits could mean you end up working in an occupation less than your education and experience?
Debt and Loan Repayment
Who would make your mortgage and car loan payments if your paycheque stopped? How long would your savings last?
Dreams
What would happen to your plans for your family’s future or your retirement if your disability wiped out everything, including your good credit?
How long would it take to get back on track for retirement?
Ways to Supplement Income
We can help you qualify for the best disability insurance in Canada to supplement your income if you become ill or injured and are unable to work.
How much can you expect to pay?
Protecting all your qualified income with long-term disability coveraeg typically costs 1-3% of your current income.
Health and Lifestyle
Your history or family history will affect the cost and the level of benefit you can qualify for an exclusion for a pre-existing condition, risk surcharge may be applied at the approval of the application.
Risk surcharges cannot be applied once you have coverage in place, and sometimes you will have an opportunity to apply for the removal of a risk surcharge or exclusion.
Benefit Amount
The monthly benefit amount is based on your current income, with the option to protect your future income increases.
Benefit Period
How long of a period you wish the insurance company to pay a benefit while you are disabled? This can be for specified lengths of time (usually two or five years) or for as long as you remain disabled or to age 65/70, whichever comes first.
Waiting Period
The elimination or waiting period is the amount of time after becoming disabled you want to start to receive benefits.
Occupation Class
Different occupations have different risks and hazards.
Level Of Coverage
You can choose between a basic, moderate, or comprehensive level of coverage on both non cancellable and guaranteed renewable contracts.
Enhancements can include the protection of future income increases (FIO), cost of living adjustments (COLA), and own occupation benefits (OwnOcc).
Definition Of Disability
The definition of disability is defined in the contract you choose at the time of application.
In addition to a definition of Total Disability, contracts can include a Residual, Reduced, and Partial definition of disability.
Ways to save for your lifestyle
Rates are based on your current age, so the younger you are, the more income you can afford to protect. There are also discounts for topping up existing employer coverage.
How do you buy affordable disability insurance?
Your most valuable asset is you and your ability to earn income. We can help you get the right disability insurance.
Our licensed insurance advisors offer tailor-made advice.
Start planning today, so you will be ready for tomorrow
Coverage that affords you an opportunity to focus on what is most important.
You can use the money for anything you want. Make new memories, finance medical equipment or therapies not covered under universal health care or health benefits plan, pay for childcare or allow your other half to take time away from work while you adjust to a new reality.
Discovery
Needs Analysis
Tailor Made Advice
Secure Financial Future
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Discovery and Pre-Qualification
Your consultation starts with a brief phone chat or virtual meeting to learn more about you. This includes the type of solution you are looking for, how we may support you, and asking questions. At this stage, we can also pre-qualify to help determine which carrier is best.
Needs Analysis
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Needs Analysis
A completed needs analysis helps ensure you don’t miss out on an opportunity and allows your advisor to make an appropriate recommendation and the information you require to make an informed decision.
Receive Tailor Made Advice
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Tailor Made Advice
Openness and willingness to share provides you with the best outcomes. After recommending solutions for you to consider, we fine-tune them based on what’s important to you, your needs, and the budgeted amount. It is okay to start based on your assumptions and then end up where you need.
Secure Financial Future
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Secure Financial Future
We guide you through the application when you are ready, and provide support afterward through significant life changes, make adjustments as life evolves, and at the time of claim. Back to homepage.
Lifestyle Protection: Disability Features
How do you buy affordable disability insurance?
Let us help you get coverage that affords you an opportunity to focus on what is most important. We provide tailor-made advice.