Long Term Disability Insurance
What would you do if you became disabled through illness or injury tomorrow?
Where would you find the resources to replace your regular income?
The best answer is Disability Insurance working in conjunction with any government-sponsored plans for which you may be eligible, e.g. Worker’s Compensation, Employment Insurance or Canada Pension Plan.
You might ask, “I am fit and healthy, so why do I need Disability Insurance?”
The facts are:
- Disability strikes working people far more often than premature death.
- A 35-year-old woman is about seven times more likely to face disability than death before age 65.
- A 20-year-old man is about three times more likely to be disabled for at least 90 days than he is to die before age 65.
- If a disability lasts at least 90 days, it is likely to last, on average, three years or more for a 35-year-old man or woman, and four years or more for a 45-year-old man or woman.
Length of Disability Benefit: 2 years, 5 years, 10 years, to age 65
Elimination Period (the length of time you must be disabled before benefits start): 30 days, 60 days, 90 days, 120 days, 180 day, 365 days
Special Features of Long Term Disability Insurance Plans
Partial Disability: Pays a pro-rated benefit if you are able to continue to work but suffer a loss in earnings. For example, if you are only able to work half the time, and subsequently your income drops by 50%, you would receive 50% of your disability benefit.
Regular Occupation Extension: Most policies provide a regular occupation period of two years. After two years, if you are able to perform the duties of another occupation, other than your own, your benefit would end. By purchasing a Regular Occupation Extension your benefit would continue even if you were able to perform another job.
Own Occupation Protection: Similar to the Regular Occupation Extension, own occupation protection maintains your benefit even if you can perform the duties of another job. However, own occupation also allows you to work in another field, earn an income, and not have your benefits reduced. You can essentially "double dip" earning an income from a new career, and still receive your disability benefit.
Return of Premium Rider: If good fortune has seen that you never need to claim on your disability policy, a Return of Premium option allows you to "cash in" your disability policy and receive a refund of your premiums paid.
Cost of Living Adjustment (COLA): For long term disability policies with benefit periods of 10 years or more we recommend the Cost of Living Adjustment option. This option increases your monthly benefit with inflation. Increases are either based on a flat 3-4% or the Consumer Price Index (CPI). This benefit ensures that you do not lose the purchasing power of your disability benefit to inflation.
HMR Insurance - Victoria, BC. Free, no obligation quote or contact us in Victoria for more information about long term disability insurance: (250) 592-4614