A lot relies on your income – perhaps even more than you think. If the unexpected happens – you become too sick or hurt to work – would your savings or the disability benefits you receive through your employer be adequate?
Individual disability income insurance helps protect a portion of your income and provides financial protection if you become disabled for an extended period of time. Anyone who depends on their income to pay the bills or maintain their lifestyle should consider disability income insurance protection.
Key Features of Disability Income Insurance
The definition of disability will vary depending on the terms of your own individual policy and/or your employer's plan. Some policies and plans consider you disabled when you're unable to perform the duties of your own occupation, while others pay only if you're unable to perform in any job suitable for you based on your training, education and experience. Some policies and plans may use an own-occupation definition for a period of time (e.g., two or three years), after which an any-occupation definition is applied. Other policies and plans require that you not be gainfully employed while you're collecting benefits or that you are unable to earn a certain percentage of your pre-disability income because of injury or sickness.
There are policies and plans that will pay you a portion of your total disability monthly benefit amount if you have lost a part of your income due to a disability—this type of feature is usually referred to as a residual or partial disability benefit. Additionally, some policies and plans may include a rehabilitation benefit that pays some or all of the cost of occupational rehabilitation approved by the insurer while other plans may include a rehabilitation provision that requires you to take part in an occupational rehabilitation program in order to continue to receive benefits.
Keep in mind that many policies and plans have exclusions and limitations and may not cover disabilities caused by suicide attempts, war, or attempts to commit a crime. Disabilities due to pre-existing conditions are also frequently excluded for a period of time after the plan or policy goes into effect, and some plans and policies will limit the maximum benefit period for disabilities caused by mental disorders and substance use disorders.
See Disability Brochure for more details
Individual disability income insurance helps protect a portion of your income and provides financial protection if you become disabled for an extended period of time. Anyone who depends on their income to pay the bills or maintain their lifestyle should consider disability income insurance protection.
Key Features of Disability Income Insurance
- Helps protect a portion of your earned income to help maintain your current lifestyle.
- Can complement existing disability benefit coverage that may be available to you.
- Fully portable. You own the policy and can take it with you throughout your career.
- Benefits are usually tax free.
- Flexible solutions for various income levels
The definition of disability will vary depending on the terms of your own individual policy and/or your employer's plan. Some policies and plans consider you disabled when you're unable to perform the duties of your own occupation, while others pay only if you're unable to perform in any job suitable for you based on your training, education and experience. Some policies and plans may use an own-occupation definition for a period of time (e.g., two or three years), after which an any-occupation definition is applied. Other policies and plans require that you not be gainfully employed while you're collecting benefits or that you are unable to earn a certain percentage of your pre-disability income because of injury or sickness.
There are policies and plans that will pay you a portion of your total disability monthly benefit amount if you have lost a part of your income due to a disability—this type of feature is usually referred to as a residual or partial disability benefit. Additionally, some policies and plans may include a rehabilitation benefit that pays some or all of the cost of occupational rehabilitation approved by the insurer while other plans may include a rehabilitation provision that requires you to take part in an occupational rehabilitation program in order to continue to receive benefits.
Keep in mind that many policies and plans have exclusions and limitations and may not cover disabilities caused by suicide attempts, war, or attempts to commit a crime. Disabilities due to pre-existing conditions are also frequently excluded for a period of time after the plan or policy goes into effect, and some plans and policies will limit the maximum benefit period for disabilities caused by mental disorders and substance use disorders.
See Disability Brochure for more details
