Disability insurance provides you with a monthly tax free income in the event that you are unable to work due to an injury and/or illness. There are several variables to examine when purchasing a disability insurance policy; the following 5 tips will help you choose the plan that is right for you:
Determine if the coverage is injury only or injury and sickness disability protection. Injury and sickness disability coverage provides much more complete coverage and pays out your monthly tax free benefit in the event you are disabled to do an injury and/or sickness. Injury only coverage is often chosen when an individual has health problems and/or is unable to obtain more traditional coverage due to their occupation.
Determine if you want a cancellable or non-cancellable policy. Non-cancellable coverage is higher in cost, but the insurance company has to honour its premium and coverage. With a cancellable policy the insurance company has the option of increasing your premium or cancelling your policy on a class wide basis.
See if you qualify for an association and/or occupational discounts. Certain occupations qualify for a preferred premium classification. Some companies also offer multi life discounts.
Determine the elimination period and benefit period which best suits your budget. The elimination period refers to how long until you begin to receive your monthly benefit. The benefit period refers to how long you will receive your monthly benefit for. These two variables combined with your monthly benefit help determine the plan’s monthly premium.
Work with an independent broker who can provide you unbiased independent advice and select a disability plan which best suits your financial situation.
The individual plan should act as the top up.
But you would have to check the policy – most individual disability policies will only replace a percentage of your monthly income. As a rule of thumb they will not replace a 100% of your monthly income because 1) the individual disability is tax free if you are paying premiums with after tax dollars and 2) they want the insured to have adequate incentive to go back to work.
Hi,
Just want to know the relationship with UI and indidividual disability insurance. Because I know that UI only gives 55%. So if you have both one will top up which ever is missing/short on your 2 weeks paycheck but I’m not sure which one
Thanks
I would like to buy the inssurrance
my phone number : 819-772-8559 leave me a message