What is Disability Insurance?
Disability Insurance, often called DI or disability income insurance, or income protection, is a form of insurance that insures the beneficiary’s earned income against the risk that a disability creates a barrier for a worker to complete the core functions of their work. For example, the worker may suffer from an inability to maintain composure in the case of psychological disorders or an injury, illness or condition that causes physical impairment or incapacity to work. It encompasses paid sick leave, short term disability benefits (STD), and long-term disability benefits (LTD).
Why is Disability Insurance Important?
Are you still not convinced about the benefits of disability insurance? Well, here are some additional reasons why it is important to be covered.
- Approximately 30% of Canadians aged 35-65 will suffer a disability lasting at least 10 weeks or longer during their employment years.
- About 1 in 7 people between the ages of 35-65 will become disabled for 5 or more years.
- Even a minor injury has the potential to keep someone from working their job for several days or weeks.
- About 46% of foreclosures on conventional mortgages are the result of a disability.
- Back disorders are the most commonly cited case of chronic conditions preventing people from working.
- A healthy 35-year-old individual has a 50% probability rate of becoming disabled or unable to work for up to 3 months or longer before the age of 65 years old.
- 50% of Canadians will face financial difficulties if they miss one week of pay due to a disability.
- Mental Illness affects thousands of Canadians and prevents affected individuals from working.
- Disability insurance helps affected individuals make regular payments while substituting their income for the period they are affected.
- Mental illness, cancer, cardiovascular diseases and musculoskeletal diseases such as arthritis, account for more disabilities than actual accidents. In fact, these diseases are six times more likely to be the case of an individual’s disability.
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Life is full of unexpected circumstances so make sure you and your family are protected by disability insurance.
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Keller & Associates Insurance Brokers Inc. are always ready to provide you with great services to help you find insurance through knowledge and experience.