Losing your ability to earn a living leads to hopelessness because once you no longer have a means of earning an income, it feels as if there’s nothing you can do but watch your financial resources deplete. The scary part is that debilitating injuries are mostly out of your control. But disability insurance allows you to regain at least some of your earning power, making it possible for you to continue handling expenses as you heal. You can either get this as short-term disability insurance or long-term disability insurance.
How Does Disability Insurance Work?
When you suffer an injury or severe illness, you file a claim. Once the insurer approves the claim, your disability insurance coverage begins. You’ll start receiving monthly payments – either immediately, or after a short waiting period, depending on your policy. These payments may not match the amount you typically earn through employment, but they will cover your living expenses. Payments are tax-free, so you can spend all of what you receive without having to relinquish a portion to the CRA.
The length of time you’ll receive payments depends on the type of disability insurance you choose. However, in either case, the payments will end as soon as you return to work.
What Is Short-Term Disability Insurance?
Short-term disability insurance offers payments up to six months after your claim is accepted. This is ideal in cases where you suffer a moderate injury. Short-term disability policies also have a shorter waiting period than long-term, so your payments will begin sooner than they would if you were to have a long-term disability insurance policy.
What Is Long-Term Disability Insurance?
Long-term disability insurance offers payments that can last up to 10 years, and up to age 65. This is the policy you would want if you were to suffer a catastrophic injury or have a severe health condition. Long-term disability insurance has longer waiting periods, which can be as long as a full year after a claim has been filed. Once that waiting period is over, your payments will begin.
What Can I Do To Maximize My Coverage?
For an extra fee, you can get a return-of-premium rider, which gives you back 50% of the yearly premiums you’ve paid. Not only that, but you can also attach a cost of living benefit, which adjusts your monthly payments as inflation increases.
You may choose to have both short and long-term disability insurance policies. This is ideal because the shorter waiting periods on short-term disability policies allow for more immediate coverage, and can last long enough to complete the waiting period for your long-term disability insurance policy. If you’re seriously injured, you won’t have to worry about payments running out, because of your long-term disability policy.
Prepare Today
At Fidusure, you can get a policy that provides an income while you’re healing from injury. Just because you’re hurt doesn’t mean your bank account has to suffer. We’ll get you the disability insurance you deserve at a price you can afford. Call us today at (647) 567-4702.