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The Five Of The Most Common Misconceptions About Disability Insurance
Disability insurance is important for anyone who is currently employed, whether full-time or part-time, as it provides you with financial security. If you become unable to work or earn an income as a result of an accident or illness that causes you to become disabled, disability coverage will replace at least a portion of your usual earnings. If you typically provide for your family, disability insurance will ensure that you and your entire family are protected if something happens to you. Here are five of the most common misconceptions when it comes to understanding disability protection:
1. You Don't Need Disability Insurance
You actually have a much higher risk of becoming disabled than the chance of your house burning down or getting involved in a car accident. There is a 25 per cent chance that a 20-year-old individual will become disabled at some point during his or her career. Most people have home insurance in order to protect their residence. How can you justify not having disability coverage to protect yourself and your family?
2. Once Becoming Disabled, You'll Immediately Begin Receiving Payments
Most disability contracts have an initial waiting period of approximately 120 days before anything is paid out. This is because the company needs to evaluate each case.
3. Disability Insurance is no Different than Life Insurance
Disability insurance is a different classification of coverage than both life insurance, as well as critical illness protection. Disability insurance does not pay a one-time lump sum, as life coverage often does. Instead, you will receive regular payments while you are disabled, which can substitute your income in full or in part (depending on your policy) while you are unable to work.
4. Piling up Disability Insurance Policies Ensures More Coverage
Your disability insurance policy is always linked directly to your income and current employment. The value that you will receive, regardless of how many policies you have, is capped. There is no way that you can possibly get some kind of luxury existence from your disability policies. Disability protection policies are not "stackable," which differs from critical illness insurance policies. Disability coverage covers a percentage of your income, ranging from 50-70 per cent of your total income, depending on your policy.
5. Your Beneficiaries Can Make Claims at any Time
Disability insurance policies can have a deadline for claims.
Is it Worth it to Rely Solely on Worker's Insurance?
The insurance coverage that is provided to you through your workplace is an insurance policy that could sufficiently cover you in case of an accident. However, it largely depends on what kind of protection is in place. If your employer has Worker's Compensation insurance, you will only be offered coverage if you are injured while within the course of your work. This means that you will not receive any income replacement coverage if you are involved in an accident outside of work, or endure disability as a result of your health outside of the workplace. This may be an issue, as the chances of becoming disabled at work are actually lower than your chances outside of work. Your employer wants to minimize your chances of becoming disabled, but is more concerned with that happening within the workplace. Some sources indicate that as many as 90 per cent of disability cases originate outside of the workplace.
If your employer has a group disability in place - whether in addition to Worker's Compensation or instead of it - this policy will cover you outside of work. Although you will be covered, even if your disability results from something outside of work, your coverage will end as soon as you leave your employer
Although your employer should have WSIB coverage, many start-ups and other smaller companies may not. Worker's Compensation is only able to cover a portion of your earnings prior to the accident, and some additional medical expenses. These expenses may include prescription drugs, medical treatments, chiropractic care, physiotherapy, rehabilitation, and training.
If you already have group disability protection through your workplace, you may not need individual disability insurance. Although your workplace offers this protection to its employees, be sure that you understand the exact conditions of the policy, what the coverage provides to you, and the percentage of your salary that it covers. Worker's Compensation also offers you additional protection, if that is something that your company uses. Keep in mind that even with this level of security through your workplace, it will end the moment you lose or leave your job. If you want to remain protected, no matter what happens, individual disability coverage is the best way to protect yourself.
How the Experts at No Medical Life Insurance can Help By connecting with the insurance professionals at No Medical Life Insurance, you can take the guess work out of finding the best disability coverage quotes. We are here to help you, the consumer, understand all of the complexities surrounding insurance. Our team believes that when it comes to financial protection, you can't afford mistakes. Protect your future by contacting No Medical Life Insurance today and finding the best disability insurance to suit your needs.
Hi, I'm Stevie! The management of personal finances is something I've been very interested in since my high school years. I'd like to share some knowledge on the subject and I really hope it'll help someone.
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