Disability Insurance

If an accident of sickness prevented you from working and earning an income, what would you do?  A personally owned disability insurance contract can provide you the financial security to know that if your income is reduced or eliminated by a sickness or accident that you will still have money coming in to pay your bills.

Illnesses and accidents happen all the time, and most often without warning.  Did you know that:

  • 1 in 3 people, on average, will be disabled for 90 days or longer at least once before age 65.
  • The average length of a disability that lasts over 90 days is 2.9 years.

Source: Compiled by Canada Life based upon CIA 86-92 Aggregate Table & 1985 Commissioner's Disability Table A (Experience Table)

You Insure Everything Else...What about Your Income?

Car insurance, home insurance, health and dental insurance...it goes on and on.

But what about insuring the thing that makes all of the other things possible?

If you are a self employed business owner, a professional, or a person that does not have group long term disability insurance through your employer, then this is a solution for you.

What Type of Disability Insurance is Available?

There are many types of disability insurance available to protect against various risks.  The two most common types are Personal Disability Insurance and Business Overhead Disability Insurance. 

Personal Disability Insurance

A plan can be tailored to meet your specific needs, and there are many flexible policy design options. The first step is to determine how much coverage you need to maintain your lifestyle and pay your bills.  Here is a disability needs calculator from Canada Life to help you with this.

A personal disability plan can be customized in a number of ways to meet your specific needs such as:

  • Various waiting periods before you receive benefits - 30, 60, 90, 120, 180, 365, 730 days
  • You can decide how long benefits are to be paid - 2, 5, 10, years, to age 65
  • There are many riders you can add to the plan for further customization such as inflation protection, future purchase option without medical evidence, return or premium, and so on

Business Disability Insurance

When you are a business owner or professional you have many obligations that will continue should you become disabled and suffer a loss of income.

There will still be rent or office leases to pay, equipment leases, salaries of your valuable staff, telephone and other utilities, professional liability insurance, memberships and dues...the list goes on.  Here is a business expense calculator from Canada Life that you can use to figure out what these expenses amount too.

This type of coverage will provide you with reimbursement for your business expenses should you become disabled, provide money to hire a replacement (Key Man Disability Insurance), or provide money to buy out a disabled business partner or shareholder (Disability Buy Sell Insurance).

Please contact your advisor for more information about the range of products that protect against financial loss from disability due to sickness or accident.