Disability Coverage in Canada
It’s important to be prepared for the emergent situations that most everyone faces during the duration of their life. Sudden death or conception of a child are things that happen all around the world, and effect most people. According to Statistic Canada’s 2016 census, there was close to 800,000 people aged over 85 living in Canada, and there will be a major influx of baby boomers reaching an age of 64-74 years, in the next decade. Other sourced research shows that 1/3 people will be disabled for approximately three months or more, at least once before reaching the age of 65.
Disability Insurance
The emotional, financial and physical strain that can happen with life is real, and it is important to be safe, rather than sorry. Disability coverage during the heart-aches of life can be a safety net that saves a life too. A disability can include both physical and mental health issues. The idea behind disability coverage is that it provides income and financial stability when you cannot work.
Long Term Disasbility Coverage
Disability coverage provides income protection, as well as retirement protection, for it supplies supportive financing without you having to dip into your life savings or retirement fund. Disability coverage in Canada typically provides funds to cover your housing costs, utilities, car payments, medication, and groceries. Upon reviewing a disability insurance calculator, you may also have funds to help support keeping your house clean, transportation to and from your appointments, and ultimately, a sense of freedom from financial stress during a time of healing. Most insurance companies provide disability coverage calculators, insurance quotes, online through their websites. Be sure to do your research and be as astute as possible.
Disability Coverage for Maternity Leave:
Disability coverage for maternity leave may be provided by your employer. It is mandatory that your employer allow a minimum number of weeks for maternity, parental and adoption leave. This coverage varies from province to province, with disability coverage in Ontario for 52 weeks, but your employer does not have to pay you during this time. The Government of Canada provides maternity and parental leave benefits which vary between provinces. Disability coverage in Ontario is provided by Employment Insurance (EI) maternity and parental benefits, which provides maternity benefit payment for a maximum of 15 weeks, and a standard parental benefit payment for a maximum of 35 weeks. Disability Coverage Benefits for maternity leave can be paid out as early as 12 weeks before the expected date of birth and can extend to as late as 17 weeks after the actual date of birth. To apply for EI benefits, get in touch with your local Service Canada Centre, or you can apply online here.
Disability Coverage for Government Employees
If you work for the Government of Canada, then you are entitled to a the Disability Insurance (DI) Plan. This disability coverage is a mandatory plan that provides up to 70% of your income, and is offered to full-time and part-time employees who are appointed for more than six months or have completed six months of continuous employment with the government. On this plan, you receive a 85% premium, leaving you only having to pay the remaining 15% of your costs.
We highly suggest that if you receive group benefits from your employer, you also consider getting additional disability coverage. By adding additional disability coverage, on top of your group benefits, can ensure that all your financials needs are met in time of crisis. By constructing your own benefits and policy with an insurance advisor, you can have more flexibility and control over your plan and seek for full protection of your income.
Disability coverage for the self-employed
This is usually Individual disability insurance that umbrellas both long-term disability coverage and short-term disability coverage. This disability insurance coverage allows you to choose from a list of options in order to tailor your policy for ideal support, when the time comes. Make sure to discuss with your advisor the wait period you may endure before receiving your payments, the monetary value of your income that you’ll receive, as well as the duration for coverage in your policy. These details are important.
Critical Illness Insurance
Critical Illness (CI) Insurance offers a single payout if you get sick. This policy can be purchased through independent insurance brokers and are designed to provide you a lump-sum benefit if you are diagnosed with a health-related issue that is specified in the policy. It is important to remember that this benefit is tax-free and that having this benefit initiated will not interfere with any other benefits you may be receiving for the current disability. The advantage to Critical Illness Insurance is that it does not restrict you in how you spend your money, the money is yours to spend as you wish, and we hope for the benefit of your health and wellness. This being said, these insurance policies are rather costly and can have long waiting periods before benefits can be received.
Long Term Disability Insurance
If you have disability insurance that is designed to replace a portion of your income during a short-term or long-term disabling condition, be sure to have a full understanding of your policy, the term requirements, the waiting period, as well as any restrictions. If your long-term or short-term disability claim has been denied, we highly suggest contacting a long-term disability attorney as soon as possible. Its always better safe than sorry.
