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Posted: 1 Nov '18

What is Disability Insurance and What Does it Cover?

What is Disability Insurance and What Does it Cover

Many people think a disability is something that happens to other people. In fact, an illness or accident can strike at any time, leaving you unprepared to meet your financial obligations. Disability insurance not only helps you pay for costly medical treatment, but it also helps you protect your most valuable assets. If you're unable to work for an extended period due to am injury or illness. Here's what you need to know about disability policies and what they cover.

What is Disability Insurance and Who Needs It?

Disability insurance is a form of income protection that pays a monthly benefit from two years right to age 65 (depending on the plan), if you suffer an illness or injury that prevents you from working. The benefit can be used in any way you wish; you can use it to finance your medical costs, pay your mortgage, and all those monthly bills that
support your family. Disability insurance is ideal if you have a family who depends on your income – whether you are a self-employed business owner or professional, have a contract position or a, a full-time employee with no benefits.

What is Covered by Disability Insurance

Many business owners, professionals and people with contract positions think they don’t need
disability insurance. But if you are self employed your income depends on you showing up at
work. A disabling injury or illness can happen any time. Imagine if you took the next month off,
would it effect your income? Or what if you had to take the next two or three years off, where
would that monthly income come from?

So, what’s covered? With all disability plans you are covered for total disability. To qualify you must have suffered an injury or be diagnosed with an illness that keeps you from working. Then the benefits start after the elimination period.

About 85% of all disabilities are not total disabilities. These are called residual disabilities or partial disabilities. There is a saying among self-employed people and that is that if I’m not dead I’ll be at work. For many people if you had to work ½ days for an extended period this to would affect your income. With partial benefits you still receive reduced monthly benefits that add to your part-time income to make sure your family responsibilities are meet.

Besides total disability and partial disability there are several other disability insurance options that should be considered. These include, own occupation, cost of living, guaranteed insurability, and return of premium to name a few.

If you're an adult working in any capacity, purchasing a disability policy is a smart way to protect your assets and ensure your family's needs are met in the event you're unable to perform your job duties. Contact us for more information about how a disability insurance plan can help protect your income.


About the Author - David Motkoski

David Motkoski—At the Helm of Vistaplan Financial Group

The team at Vistaplan is led by David Motkoski, a well-respected insurance adviser to hundreds of business and individual clients. David has 30+ years of experience in this industry helping clients understand their life and disability insurance, office overhead, critical illness, long term care, and accident insurance. David’s focus has been medical doctors, dentists and business owners who are concerned with having the right coverage to provide for their family or business and protecting their income

David is an independent broker offering policies with Manulife, ivari and RBC to name a few. Vistaplan Financial Group has clients dating back to 1983 and they stay loyal with David because of the strong relationships he builds.