When you’re working a job, you rely on that steady paycheck each month to develop a solid budget, pay rent and bills, and take care of other important financial obligations. What if suddenly you were to lose that security? This is where disability insurance comes in. If you’re injured on the job or have another issue that prevents you from working, you’ll still be able to meet those important financial obligations if you’re insured.
Let’s take a closer look at what disability insurance covers and who qualifies below.
What Does Disability Insurance Cover?
Disability insurance has a range of coverage options. There are different types of disability and critical illness insurance that covers everything from total disability to rehabilitation periods.
Total Disability is when you’re no longer able to work due to illness or injury and need to maintain your standard of living. This type of insurance will pay you benefits each month until you recover, or your coverage runs out. There are two specific types of total disability insurance policies offered by companies. “Own-occupation” policies cover you when your disability prevents you from doing your specific job, whereas “any-occupation” policies cover you when you’re unable to work any job at all.
Partial Disability insurance coverage is for when you’re still able to go to work but might require a period of recovery time and are unable to perform some tasks and duties. This is to ensure you can still make ends meet if you must take time off or receive a reduced monthly paycheck.
Throughout your partial disability period, you’ll have to provide proof of your disability from your doctor on a regular basis until you’re healthy again.
What Does Disability Insurance Exclude?
Before applying for disability insurance, it’s important to note that there are several things that can make it difficult to obtain total or partial coverage. In some cases, with more serious pre-existing conditions, it can be more difficult.
Such exclusions include:
- Serious Illnesses
- History of Cancer
- History of Heart Attacks
- Self-Inflicted or Intentional Injury
- Injuries Obtained During the Commission of a Crime
- Fighting in a War
What is the Waiting & Benefit Period?
When applying for disability insurance for the first time, many are concerned about how long it will take for that part of their policy to take effect, as well as how long it lasts. Although it often depends upon the specific company and policy you choose to go with, there are some average wait times and benefit periods.
For example, the team from Desjardins Financial Security Independent Network offers policies where waiting periods until your first monthly payment can be anywhere from 30 days to two years. Different benefit periods range from two years, five years, or up to the age of 65.
Learn more about disability and critical illness insurance today!
To find out more about disability and critical illness insurance coverage, contact us online today or call (416) 695-1433 for information about our individual and business plans.
