Often, people secure themselves from future issues, and one of the ways to do this is by buying insurance. Insurance can help protect an individual from various things, such as future problems, accidents, thefts, medical issues and more. The way risks will be covered depends on your insurance plan and its type. This article entails details about disability insurance in Canada. Disability can arise from physical and mental conditions, both of which may restrict you from working. Disability insurance replaces your income from 60 to 80%, depending on the insurance plan. Contact the best insurance company in Calgary to get the best disability insurance plan. 

What Is Disability Insurance?

Disability insurance is a policy that helps individuals if they meet with an accident, are diagnosed with a medical problem, or suffer from a mental illness that makes them incapable of working. In Canada, there are different types of disability insurance, including short-term and long-term disability insurance. If a person is unable to work and earn due to their disability, disability insurance can greatly help by replacing a portion of their income and ensuring they do not experience financial burden. The amount you receive will depend on your insurance policy and the coverage selected. Contact the best insurance brokers in Canada to get disability insurance with adequate coverage.

Types Of Disability Insurance

Disability insurance is of two types in Canada: Short-term and long-term.

Short-term Disability Insurance

Just as the name suggests, short-term disability insurance provides relief for up to 6 months. If you are sick or injured or unable to work due to illness, short-term disability insurance can provide benefits and cover costs for up to six months. This insurance is also provided by the employer, and in such a situation, you must claim that insurance plan. However, you must remember that the insurance provided by the employer may not provide adequate coverage. Therefore, you can get one for yourself with extensive coverage from the best insurance company in Calgary. Also, you can get paid sick time off and leverage the benefits of Employee insurance.

Long-term Disability Insurance

These insurance policy benefits begin when your sick time, employee insurance benefits and short-term disability insurance benefits end. Some insurance companies provide benefits for up to 2 years. In most cases, long-term disability insurance replaces 60% to 70% of the income. You may continue to enjoy the benefits of the insurance even after two years if you are unable to perform any job. However, it is better to discuss such details with the insurance broker before purchasing the insurance. 

What Is The Cost Of Disability Insurance?

The cost of disability insurance depends on different factors. These are as follows:

• Coverage Amount: The higher the monthly payment you want, the higher the insurance amount will be. Discuss it with your insurance brokers in Canada before applying for insurance. 
• Age: The cost of insurance will generally be lower if you are younger as compared to when you are older. 
• Benefit Period: You will have to pay more if you want to keep receiving the benefit for a longer period of time. 
• Occupation: If you are from an occupation that includes dangerous jobs, then your insurance amount will be higher.
• Health: If you are healthy and have less medical problems, your insurance will cost less. If you have multiple health problems and conditions, then your insurance cost will be higher. 
• Waiting Period: If you wait longer to receive the payment, your premiums will be less expensive.

Conclusion

Disability insurance is a great option to safeguard your future from uncertain accidents, mental health conditions and other health issues that can make you incapable of working. If you become disabled due to illness or accident, disability insurance will provide income replacement benefits. Some portion of your income will be paid on a monthly basis to prevent financial burden. There are two types of disability insurance: short- and long-term disability insurance. Before buying the insurance, consult the best insurance brokers in Canada and consider factors such as age, health, coverage amount, waiting periods, occupation, and benefit period. Accordingly, choose a disability insurance policy that suits you.