Is Disability Insurance Important For Me?
A disability may be an injury, illness, or affliction that prevents someone from performing occupational duties. Because most young people associate the risk of disability with old age or physically demanding occupations, the likelihood that they’d invest in disability insurance is slim. A common misconception we see is, “I’m young. I’m healthy. Nothing could happen to me.” However, what they fail to consider is that life is unpredictable. Unexpected illnesses or injuries can happen to anyone.
Disability insurance provides a monetary cushion and prevents disabled individuals from suffering from the negative effects of financial hardships that come along with a tough situation. As experts in the field, Camlife Financial Corp wants to help you understand what disability insurance is and how you can benefit from it.
In the most basic terms, disability insurance is protection for your income. If you depend on earned income to pay your bills, disability insurance is something that you can’t afford to be without. For families that rely on two incomes, the loss of a paycheck due to injury or illness may be devastating. Disability insurance can help you pay your mortgage, put food on the table and pay your bills.
Even if you have a white collar job, an illness could still prevent you from working. Purchasing disability insurance is a wise decision for everyone to consider, regardless of occupation.
What you should know about disability insurance
1. What type of policy should I go for?
As you begin searching for a disability insurance policy, you’ll run across Short-Term Disability (STD) and Long-Term Disability (LTD). Short-Term Disability policies have a waiting period of zero to fourteen days with a maximum benefit period of no longer than two years. Long-Term Disability policies have a waiting period of several weeks to several months with a maximum benefit period ranging from a few years to the rest of your life. Knowing which type of policy suits your unique needs is very important. This is why you need to do adequate research on the topic. If you are eligible, you can also collect Social Security (SSDI) benefits if you are disabled and unable to work. But, and this is important, you must be unable to perform any work, not just what you normally do.
2. Am I adequately covered by my employer?
Most employers offer some kind of disability insurance, but you should find out exactly what your employer offers before you have to file a claim. Check with your benefits department to see if you are covered and, if so, how long you must wait before benefits begin and how long payments will last while you are still disabled.
The cost for disability insurance can be between $100 to $300 per month, depending on the benefit. A rule of thumb is that you cannot be insured for more than two-thirds of what you earn when you are working. This is just due to moral hazard. Many people would not go back to work making more or even the same amount as before they were working.
It is crucial to make sure that you work with someone who knows disability insurance and does not just dabble. They need to be able to recommend certain types of insurance upon hearing about the financial needs and goals you have. They should go above and beyond to shop the market/various insurers for a program that suits your needs. They should make sure to educate you on which types of insurance policies and programs will work best for you. You will then be able to make an educated decision about which insurance policy you should invest in.
If you are looking for a life and health insurance broker in Vancouver, BC, then reach out to us at Camlife Financial Corp. We help families and businesses with their financial planning, insurance, and investment needs. We believe that everyone’s situation is unique, and we take the time to get to know our clients. Once we determine specific needs, we devise a plan and go to the market to see which insurer or investment company will be the best fit. Representing over a dozen insurance and investment companies, we have access to all the major carriers. We do not charge a fee for service but rather are compensated directly by the investment or insurance company.
Insurance solutions we offer include Life Insurance, Term Life Insurance, Creditor (Mortgage) Insurance, Life Insurance for New Immigrants, Non-medical Life Insurance, Manulife Vitality, Permanent Life Insurance, Term 100 - Permanent Life Insurance, Universal Life Insurance, Whole Life Insurance, Medical Underwriting, Living Benefits Insurance, Critical Illness Insurance, Disability Insurance, Life Insurance For Business Owners, and Corporately Owned Life Insurance. We offer all of these services to clients across Vancouver, Richmond, West Vancouver, North Vancouver, Burnaby, Surrey, White Rock, Langley, Coquitlam, Maple Ridge, and New Westminster, BC. To learn more about the services we provide, please click here. To get in touch with us, please click here.