If you are unable to earn money because of disability, then disability insurance is designed to replace a portion of your income.
Why is disability insurance important?
Unlike your traditional job, if you are self-employed and some something happens and you cannot work, everything will be at risk. Self Employment does not come with any safety net for injury/disability. Disability insurance takes place of your income and can provide you with decent money so that you can recover in peace.
Considerations when shopping for disability insurance
So, here are the things that you should consider before buying disability insurance:
- Match the income that you are protecting to your plan benefit period to the work. You can either go for short-term or long-term disability insurance. Short-term disability insurance is applicable up to maximum two years of disability. This insurance is more affordable than long term insurance.
- If you are looking for a longer stream of income, then long-term disability insurance is the one for you. Most companies offer five to ten years of income but you can buy longer duration policies that will pay until you are 65. The long-term policy is more expensive and suitable for people who do jobs like photography.
- It is also advisable to get a renewable and guaranteed policy. This actually means that a company cannot change the terms or premium as long as you are paying your premiums.
- The cost of the policy is based on the payout amount and the duration of the policy.
Some of the facts that insurance companies incorporate in the policy price are occupation class, benefit amount, elimination period, gender and age.
If you think you don’t need this insurance and it will happen to you, think again! You cannot ignore it. So, call us now and know more about Disability Insurance, Health Insurance, and Dental Insurance Brampton.