Being unable to work for several years or being totally disabled can bring its share of daily problems. Especially when you know that a disabled person's expenses often increase due to the special treatments that their new condition requires.
The risk of becoming disabled during your working life is three times higher than the risk of dying. If you have disability insurance, your worries will be greatly reduced if you are careful to choose the right insurance coverage.
Disability insurance is not intended to cover the brief interruptions in work that may result from an illness or minor accident. Rather, disability insurance is intended to compensate for a prolonged or permanent loss of income caused by a serious illness or accident.
There are several things to consider before purchasing disability insurance:
What Type of Coverage?
There are two types of disability insurance: short-term and long-term. Short-term disability insurance generally covers an average disability period of 17 weeks. Long-term disability insurance can cover up to age 65.
What Amount of Protection?
The amount of coverage you can purchase cannot exceed your pre-disability income.
It's up to you to determine what you and your family need. Just remember that your expenses are likely to increase, not decrease.
Which Waiting Period?
An elimination period is like a deductible in property and casualty insurance: the longer your period, the lower your premium. Benefits are payable at the end of the waiting period stipulated in the contract.
Because it directly affects your earning capacity, disability is a real threat that should not be taken lightly. Consult Lussier's financial security advisors for more details!