One of the most important aspects of a disability insurance contract is its definition of “Disability”. Most contracts will refer to and define total disability, partial disability, residual disability and presumptive disability.
1. Total Disability is best defined as your inability, due to sickness or injury, to perform the important (or substantial) duties of your regular occupation. Most contracts will also specify that you must be under the care of a physician and not working at a gainful occupation. A word of advice: Be weary of contracts that define disability as your inability to perform any occupation or being gainfully employed in any job.
2. Partial Disability means the inability, due to injury or sickness, to perform either the important duties of your occupation at least one-half of the time or one or more important duties of your occupation.
3. Residual Disability is not defined by loss of time and duties but rather by loss of income (generally 20% or more) due to sickness or accident.
4. Presumptive disability means that injury or sickness causes you to totally and irrecoverably lose either your power of speech, hearing in both ears, sight in both eyes, use of both hands or both feet or use of one hand and one foot.
The price of disability insurance is based on many factors. The elimination period, benefit period, age, sex, smoking status, and occupational class and of course benefit amount, are all factors that will determine its cost. It can be inexpensive but generally represents 1% to 3% of your annual income period.
Look it this way. Of two similar jobs offered to you, which would you accept? The one offering you $100,000 per year while you work and nothing if you could not work because of a sickness or accident, or the other that paid you $98,000 but guaranteed you the equivalent of 80% of your income should you be prevented from working if you were sick or hurt. and that, until age 65 or earlier recovery.
Keep in mind that your ability to earn income represents likely your most valuable asset. Loosing that ability, without having in place a solid income protection plan, can jeopardize your entire financial future.
Find out what a quality disability plan costs by requesting a quote now. Can you afford not to have it?
Goulet Insurance represents all of the companies offering high quality, non-cancelable disability insurance contracts in Canada. With over 40 years of experience we can assist you in selecting the proper plan and benefit amount to meet your needs, all while helping you understand these types of policies so that you can make the right choices.
Look at it this way. If you owned a goose that laid golden eggs, which would you insure first, the goose or the eggs?
Most individuals insure their homes and autos etc. These represent the eggs.
Although it is important to insure the eggs, it is even more important to insure the goose that lays them.
Through your earned income, you are considered the goose and through your income, you generate a particular lifestyle that would likely change dramatically if you lost your ability to work and generate income.