Canadian Disability Insurance Plans

If you are an independent contractor or self-employed and do not have insurance policy coverage, what is protecting your income?

Ask Insurance Direct Canada about Disability Insurance Plans.

Disability Insurance Benefits

A serious injury or illness that keeps you from working for an extended period of time can be financially devastating when you consider that:

1. Your current income will cease
2. Your future income will cease
3. Yet your business and/or personal expenses may continue (in most cases)

Disability insurance plans help protect you and your family by protecting your income in the event of a disabling injury or illness.

There are two types of disability insurance plans available in Canada:

1. Short Term Disability Insurance Plans – This disability insurance policy provides protection for a brief period, generally up to 120 days when UI insurance might be available.
2. Long Term Disability Insurance Plans – This disability insurance policy starts after 90 days and lasts to age 65.

Defining Eligibility & Disability Insurance Policy Considerations

Disability insurance plans replace between 54 – 70 % of the policyholder’s gross taxable income, tax free, in the event that the policyholder becomes disabled. Some Canadian disability insurance policies differ on how they define eligibility.

Eligibility for disability insurance plans may be defined as:

1. A policyholder who is no longer able to perform their current job functions due to injury or illness
2. Or a policyholder that is unable to perform job duties in any line of work due to injury or illness for which their education, experience and training would qualify them to do.

There are also many aspects of Canadian disability insurance plans to consider when deciding on a policy:

• Have you been an independent contractor or self-employed for long or are you just starting out?
• Will you accept a 30 day wait period before payment starts (or a 60 day or 90 day)? This can dramatically affect your disability insurance premiums.
• How will you be paid if you can still do a part of your job?
• Do you need an added rider on your disability insurance policy to cover business expenses, including loans and lease payments, RRSP Contributions?
• Should you consider adding the option to have all your disability insurance premiums returned, less any claims?
• What if your long term employment plans change; will coverage continue if you change jobs or occupations in the future?
• Some disability insurance policies do an income test at time of claim and if your income does not support the benefit, it is reduced accordingly while others guarantee to pay out what you purchased as they do the income test when you purchase the policy. 

Be sure to get expert advice when comparing disability insurance plans in Canada.

Ask Us About Disability Insurance Plans

Insurance Direct Canada (IDC) has a team of professional independent insurance brokers. We recommend that you seek the expert advice of a certified IDC disability insurance broker before choosing a policy as policy terms and coverages can vary greatly from policy to policy.

Insurance Direct Canada is a Canadian Managing General Agency (MGA), providing insurance coverage from top Canadian insurance companies like AIG Life, Assumption Life, Desjardins, Empire Life and Equitable Life, to name a few.

IDC can shop for the best disability insurance plans with the lowest possible premiums for residents of of Ontario, British Columbia, Manitoba, Saskatchewan, Nova Scotia, New Brunswick, Prince Edward Island, Newfoundland and Labrador, Yukon, Northwest Territories, and Nunavut.

For more information about Canadian disability insurance plans, Contact an Insurance Direct Canada broker or call Toll Free at 1-877-762-7802.

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