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What you need to know about disability insurance

Table of Contents
What exactly is disability insurance? Do I need disability insurance? Things to consider about disability insurance Moving forward with disability insurance

If you depend on your paycheque to pay the bills, you need something to fall back on if something unexpected happens. That’s why disability insurance is a basic building block of a good financial plan.

 

What exactly is disability insurance?

Disability insurance is designed for when you are not able to earn an income due to illness or injury. You’ll receive up to 65% of your pre-tax salary each month right up until age 65 in most cases. In other words, it’ll be like your pay cheque never stopped.

Do I need disability insurance?

If you’re currently working and earning an income then disability insurance should be on your radar. Consider the following situations:

  • You have a job. If you’re working full-time and earning a minimum of $15,000 annually, you can be eligible for disability insurance.
  • You need to be paid. If you’d have trouble covering your bills and maintaining your current lifestyle without a regular pay cheque, disability insurance can protect you.
  • Work might not cover you. Some workplace benefits include disability insurance and others do not. Among those that do, many don’t offer enough coverage. You’re best to do a bit of homework and make sure you’re fully covered.

 

Things to consider about disability insurance

Did you know that roughly 1 in 3 people will become disable for at least 90 days during their working tenure? For many people, having disability insurance in place is even more important for their financial security than saving and investing, because you just never know when something could go wrong. The sooner you apply, the easier and less expensive your coverage is likely to be.

 

Moving forward with disability insurance

While it’s easy to call up any insurance agent and accept the first quote you receive, you’ll want to go somewhere that shops the market to find you the right price from the right insurer. Planswell can help with that. We work with a variety of industry-leading providers and will research the best policy to protect you.

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