Disability insurance is generally divided into two broad categories.
There are policies that cover both injury and illness related disability, but there’s also Injury Only policies that provide coverage for disabilities caused just by injuries.
The World Health Organization estimates that of the 600 million people living on the planet with disabilities, 25% have disabilities due to injury, while the remaining 75% are due to illness. Since Injury Only disability insurance covers a generally smaller percentage of potential disabilities, the premiums are often much cheaper than policies that include potential disabilities caused by illness.
One advantage of Injury Only coverage, is that it generally does not factor in the insured’s overall health because a healthy person does not have a more significant chance of being injured than an unhealthy person. Injury Only disability insurance premiums are more heavily impacted by the insured’s occupation, i.e. a landscaper would pay higher premiums than a lawyer or a pharmacists.
Below are examples of pricing for an Injury Only and Injury and Illness Disability coverage for a 45-year-old male, non-smoker who is considering $3,000/month in disability coverage with a 30-day elimination period and a five-year benefit period.
The cost of RBC Insurances’s Injury Only coverage called, The Edge (the leading provider of Injury Only insurance) is $29.25/month. * However, illness-related coverage would include the added cost of $107.64/month.*
*The above rates assume an AA classification, which is the best classification for The Edge disability product line and is usually limited to professionals like lawyers, executives, doctors and other low-risk occupations.*
You can get a free online quote for disability insurance at our Disability Insurance Instant Quote Page or contact us at 1.866.899.4849.
