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Disability Insurance

Disability Insurance

Sometimes professionals, business owners and other individuals have a complete misunderstanding about their valuable personal assets. Most people think that the biggest assets for them is either home, vacation property, or their most expensive car. In fact, this is a complete myth and biggest asset of any individual in north America is ability to go to work and make money. The moment you are injured, sick or anything that prevents you to earn, your lifestyle will be impacted significantly.

What is the difference between disability insurance and critical illness insurance?

Disability insurance provides you a periodic payout of money for a specific period of time. While critical illness insurance gives you a lumpsum tax free amount.

I already have a disability insurance from my bank, and I am paying a premium for it. Is that enough?

Well, most of the banks offer disability insurance on the mortgage. In fact, that is sold because banks want to protect themselves and not you. In case a claim comes on the policy banks will still get their mortgage payments thru insurance company, but you might not be able to pay your other bills like car payments, grocery and other lifestyle need expenses.

What is the difference between the disability insurance bought from bank vs disability insurance from an insurance company?

There are a lot of differences between these two. If you buy it from bank:

  1. Benefit period is only for 24 months.
  2. Benefits amount does not exceed your monthly mortgage payments.


I have a disability coverage from work. Do I still need to consider buying disability insurance?

Most employers provide disability insurance to their employees up to 67% of the employee income. Another important thing to look at your disability coverage is non evidence maximum. For example, if your non evidence maximum is $ 3,500 and your annual income is 150K you will be paid only $3500 per month and not 67% of your annual income. Therefore, it is very important to review your benefits booklet or contact your benefits specialist. Alternatively, you can call us at 416-839-4561.

How much will be my disability insurance premium?

Your disability insurance premium depends on a few factors.

  1.  Occupation
  2. Benefit amount (The monthly benefit amount)
  3. Benefit period (2 years, 5 years, until age 65 or until age 70)
  4. Waiting Period (0 days, 30 days, 60 days, 90 days, 120 days)

What is covered in my disability insurance?

Your disability insurance can cover you on injury as well as sickness. Any conditions that prevent you to perform your job duties will be covered by your disability insurance plan.

I am paying too much on my disability insurance how do I reduce premium?

You can get your policy reviewed by an insurance advisor or you can call us and we can do a complimentary review. Increasing waiting period reduce the premium and is very effective tool to reduce premiums.

I am self employed what type of plan should I get for myself?

Self employed and business owners should always get a disability coverage as they are not covered by any benefit plan. Before taking a disability coverage you should always look at your last 2 years of notice of assessment as you can cover only 80% of the income reported at line 150. Getting a higher coverage amount doesn’t necessarily guarantee the benefit payout as you can cover only 80% of your income at line 150.

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