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Posted: 1 Jun '23

Why You Should Speak to Your Disability Insurance Broker About a Plan

Why You Should Speak to Your Disability Insurance Broker About a Plan

If you're like most people, you've probably never considered your disability insurance policy to be a particularly exciting topic. But it should be. Disability insurance is pretty important. It can help you pay your bills if you are injured or sick, and it can give you peace of mind if something happens to your income. 

But like any other insurance policy, it's important to know what you're purchasing and how much it will cost before signing up with the plan. In the sections below, we have discussed all there's to know about disability insurance policies and why you should speak with a disability insurance broker before making up your mind. Call us today to speak to a Vistaplan broker.

Understanding Disability Insurance

Disability insurance is a type of insurance that provides benefits if you are unable to work due to an injury or illness. If you have a disability policy in place, you may be able to receive payments for lost wages and other expenses. You can also use the money from the policy to help pay for medical bills and other costs associated with the disability. 

An ideal disability insurance plan should be enough to cover living expenses like rent, mortgage payments, food, medical bills, clothing, and other essentials for a given period. You can get disability insurance through your employer or purchase it on your own. Depending on your needs, budget, and preferences, you can choose one of the many types of disability insurance plans. 

Types of Disability Insurance Policies

Disability insurance plans are mostly classified into two; long-term and short-term disability insurance. The main difference between the two is the duration at which they last. Long-term disability is considered a primary overage as it covers expenses from a serious illness or injury for a slightly longer period. On the other hand, short-term disability is typically considered supplemental coverage and usually lasts between six and 12 months. Here are the other differences between long-term and short-term disability insurance:

  • Waiting period. Short-term disability insurance usually has a shorter waiting period than long-term disability plans. 
  • Eligibility. Long-term disability insurance policies have stringent edibility requirements compared to short-term disability insurance plans.
  • Benefit Amount. Short-term disability plans often cover a smaller percentage of the individual's salary (50%-60%) compared to the long-term disability plan (60%-80%).
  • Cost. Due to the difference in benefit amount and duration, the cost of long-term disability policies is often higher than that of short-term disability plans. 

Besides classifying disability insurance policies as either long-term or short-term, they can also fall into a group or individual insurance plan. Other disability insurance policies include income replacement and mortgage disability insurance policies. 

Now that you know there are different disability policies, choosing one that fits your needs is important. For example, some policies will provide benefits based on your ability to work rather than the severity of your injury or illness. Others will cover specific conditions, such as cancer and chronic conditions, while most plans are more general. The best way to determine which type of policy is right for you is by speaking with your disability insurance broker, who will guide you through all your options to get what works best for you.

Why Speak to a Disability Insurance Broker?

Disability is a scary thought, but it's also a real possibility that could happen to anyone. If you're living on a fixed income and your disability leaves you unable to work, that would be a huge problem. 

However, you can take some steps now to help protect yourself and your family in the event of a disability by purchasing the right disability insurance. Here, it's important to work with the right disability insurance broker to ensure you get the most out of your policy. Here are some benefits of working with an experienced disability insurance broker:

  • Timely guidance and expertise. You'll get an honest, unbiased assessment of your needs and feel supported every step of the way.
  • They'll save you time. If you want to apply for disability insurance but don't want to spend hours researching or looking through policies yourself, then hiring a disability insurance broker is a good option.
  • You'll get a better deal on your premiums. An insurance broker is an independent contractor who works for you. They will be able to negotiate with the insurance companies to get you a better price on your policy.
  • You'll better understand your options. Disability insurance brokers are experts who understand the different kinds of policies and can help you choose what's best for your needs.
  • They'll help with the claim process. Your disability insurance broker will help you navigate the complicated process of filing a claim.

Why You Should Speak to Your Disability Insurance Broker About a Plan

Things to Ask Your Disability Insurance Broker 

Disability insurance is an important part of your financial planning, and having a disability insurance broker to help you navigate the market can be a huge advantage. Here are some critical factors to discuss with your disability insurance broker:

The Policy's Terms and Conditions 

When shopping for disability insurance, it is important to understand the definition and implications of the terms and conditions of the policies you are looking at. This includes information on how long the waiting period before benefits begin will be, how often your premiums will increase, and whether or not there are any restrictions on who can receive benefits.

Similarly, you should also ask your disability insurance broker if any other fees associated with your policy could change the cost of your premiums or affect your eligibility for coverage. For example, some policies may require that you pay a monthly fee for supplemental benefits such as vision care or dental coverage.

The Policy's Premiums 

The premium is the amount of money you pay each month for insurance coverage, and it is usually based on several factors: your age, health history, occupation, and income level. If you are young or healthy, you will likely pay less than someone older or less healthy. The premium will also be higher if you work in a dangerous profession such as construction or mining.

Your disability insurance broker should be able to tell you how much it will cost to purchase a policy, and they should be able to give you the option of different levels of coverage. If you have a family, consider increasing your coverage so that if something happens to you and your spouse, your children will have enough money to pay for their education or other needs.

The Policy's Benefits 

The benefits provided by a disability insurance policy can vary depending on the policy and the company offering it. Some policies provide coverage for partial disabilities or full disabilities, while others provide only partial coverage. You should ask your disability insurance broker about the details of each type of policy offered by their company so that you can make an informed decision about which is best for your needs.

Individual Plans vs. Group Plans 

When shopping for a disability insurance plan, you'll often choose between individual and group plans. The main difference is that individual plans are purchased by an individual directly from an insurance provider, whereas a company purchases group plans on behalf of its employees. Group plans are typically cheaper than individual plans because they spread the cost over a larger pool of people. Sometimes, employers may provide disability insurance as part of their employee benefits package.

Choose Your Disability Insurance Broker Today 

Before comparing the various disability insurance plans, ensure you have guidance from a trustworthy and experienced broker. A good disability insurance broker will listen carefully and ask questions about your situation, including how much income you need to cover, what kind of work you do, your health status, etc.  

That said, don't be afraid to ask if any information is missing from your policy application. It may seem like a lot of details at first glance, but getting them right will save you money in the long run. Call Vistaplan to speak to an expert disability insurance broker today!


About the Author - David Motkoski

David Motkosk 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