DISABILITY INSURANCE QUOTE AND EXPERT TIPS

Sample Disability Insurance Quotes

What is Disability Insurance?

Disability insurance is a type of insurance that substitutes part of your income should you become disabled. Unlike other forms of insurance, disability benefits do not come as a lump sum, but as monthly payouts.

Disability cases are clearly defined in an insurance policy and have a number of special conditions defining waiting times (elimination period), the types of work in which you can be engaged after disability, and much more.

When do you Need Disability Insurance?

Disability is one of the insurance coverages that you always need if you have a stream of income, and especially if people, such as your family members, rely on this income.

Here are a few things to know

1. One in three Canadians becomes disabled for three months or longer before the age of 65.
2. Nearly 15% of Canadians have a disability.
3. Many employees already provide some disability coverage as a part of a benefit package, but you could lose this protection if you change your job.
4. You cannot combine the coverage of multiple policies above a particular percentage, and that percentage is linked to your income. Disability policies are not stackable.

How does Disability Insurance Compare to Critical Illness Insurance?

Here is a brief comparison to show how disability insurance compares to critical illness insurance.

Disability Insurance Cost

Disability insurance rates are determined through numerous aspects, such as:

• Elimination period (time frame when you do not receive benefits.
• Benefit period (time frame during which you receive benefits. For example, 2 years, 5 years, up to age of 65).
• Type of occupation, such as “own” vs “any” occupation – basically, your ability to qualify for benefits if you are forced to work in a different career path after your disability.

Disability insurance costs are higher than term life insurance costs.

Here are some examples for disability insurance cost. These disability insurance rates have been generated in September 2021.

Please note that these rates consider 90-day elimination period, benefit period to age 65, and job category 3A (most “white collar” workers: office, clerical, or light sales work with no manual duties), which is one of the most popular job categories.

Source: Disability Insurance cost examples above are based on Manulife Venture Series premiums as they are indicative of rates from other providers (September 2021). Find more details on Manulife Disability Insurance Venture series here.