Disability Insurance

By August 21, 2016 Uncategorized

We’re all aware of the passage of time and its effects. What we could accomplish with ease in our twenties becomes trying at forty and laughable by sixty-five. In a sense, even natural aging is just the process of losing once-possessed abilities. Of course, acquiring a disability will make you rethink this definition, since there’s a big difference between having to give up beer league hockey and having to walk with a cane. Yet basic provincial healthcare often lacks when it comes to disability coverage. Knowing that, disability insurance is a great option to give you peace of mind.

The Basics of Disability Insurance

One of the most damning aspects of acquiring a disability is that you may lose your ability to continue at your job—thus losing your ability to earn a living. As such, disability insurance provides for this loss of potential income. Disability insurance can come in different forms: individual plans, group plans, special purpose plans, and government plans. For our purposes, we’ll focus on individual plans.

Individual Disability Insurance

Nearly one million Canadians currently own individual insurance plans. This makes sense since they’re steadier than group plans (which change when you change jobs), and you can tailor an individual plan to suit your personal needs. With most insurers, there are three types of individual plans:

  • Noncancellable: With these, you can’t cancel the plan, however the price of premiums also cannot be raised. The benefit of this plan is that it gives you the opportunity to purchase a policy while you’re young and healthy and keep those subsequently low premiums.
  • Guaranteed Renewable: The insurer of this policy must renew the policy as is at the end of the contract, however they may be able to raise premiums depending on the circumstances.
  • Commercial: When the contract runs up for these policies, the insurer is not obliged to renew, and can also charge higher premiums if you have submitted claims in the past.

Of course, these are only the basics of disability insurance. For a more detailed discussion, contact the experienced team at Rockfield Financial.