Alberta Life, Disability, and Health Insurance Since 1983

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Posted: 1 Jan

Why You Should Not Overlook Disability Insurance

Why You Should Not Overlook Disability Insurance

When accidents happen, we often hope to resume work and our lives successfully. However, what happens when an accident causes a permanent injury, and you’re hospitalized for months? Can your family and dependents cope after a life-changing accident or illness? Disability insurance is a critical safety net in these situations. Call a Vistaplan advisor today to learn more.

What Is Disability Insurance?

Many of us worry about health and life insurance. However, life-changing accidents and illnesses can strike at any minute. In case of long-term hospitalization, paralysis, and intense physiotherapy, you cannot generate income to cover your hospital bills and support yourself and your loved ones. There is also the risk of depleting your insurance, savings, and financial resources. 

Disability insurance provides monetary support for daily expenses and rehabilitation after a life-altering illness or accident that causes disability. This insurance is beneficial in handling long-term disability costs. 

The Types of Disability Insurance

  • Long-term disability insurance: This type of policy provides a monthly income when you’re unable to work following a critical accident and illness. 
  • Critical illness policy: This type of policy pays you a tax-free lump sum following the diagnosis of a critical illness covered in your policy. 

How Do You Choose Disability Insurance in Edmonton?

Ultimately, the choice of a disability policy depends on your needs. If you are an employee in a large organization, there’s a high likelihood that you have a type of group disability plan. In these plans, you receive part of your monthly income until you resume work, retire, or pass on. The covers vary per employer, and it’s crucial to check if the payments are sufficient for your needs. However, for smaller organizations, disability insurance is less likely. 

You can also receive coverage for “any occupation” or “own occupation.” The latter is a better cover because it covers your ability to work in your regular job. However, in the former, “any occupation,” the cover assumes that you can perform a less demanding job after a disability, consequently cutting off the benefits. 

A disability insurance cover that pays 60% of your income following an accident or illness provides sufficient support. However, the cover can go as low as 40% of your monthly income. Generally, check if the policy payments can cover expenses such as mortgage payments, taxes, food, transportation costs, and utility bills. 

It’s also crucial to remember that most disability plans cap their benefits. For example, while a plan may offer to pay 60% of your monthly income, they may limit it to $3000. Also, lump-sum payments may be ideal for short-term illnesses but deplete for years of disability. What’s more, the policies may be limited in the illnesses they cover. 

Get Disability Insurance in Edmonton Today 

The fact of the matter is that you are for more likely to be injured and become disabled at work than be killed on the job. While life insurance is still a crucial protection policy should the worst happen, a disability policy offers additional protection that you, your family, and your business deserves. Contact our disability insurance broker and protect yourself and your loved ones.

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About the Author - David Motkoski

David Motkoski—At the Helm of Vistaplan Financial Group

David is a well-respected insurance advisor with over 30 years of experience helping healthcare professionals, business owners, and their families secure their financial futures. He takes the time to make certain his clients understand the life, disability, and health insurance products they are purchasing, so they can make the right choices for their budgets, plans, and futures. CONNECT WITH ME ON LINKEDIN

Life & Disability Insurance for Alberta Health Care Professionals, Business Owners, and Their Families Since 1983