Disability insurance is essential for everybody who is employed, whether full-time or part-time, because it provides financial security. Disability coverage will replace at least a portion of your normal wages if you are unable to work or earn an income as a result of an accident or disease that renders you incapacitated. If you are accustomed to providing for your family, disability insurance will safeguard you and your entire family in the event that you become disabled. The following are five of the most typical misunderstandings about disability protection:
1. You Don’t Need Disability Insurance:
You actually have a significantly higher chance of becoming disabled than your house catching fire or being involved in a car accident. A twenty-year-old individual has a 25% probability of becoming incapacitated at some time throughout his or her career. The majority of people carry home insurance to protect their property. How can you justify not protecting yourself and your family by not getting disability insurance?
2. Once Becoming Disabled, You’ll Immediately Begin Receiving Payments:
Before anything is paid out under most disability contracts, there is a 120-day waiting period. This is due to the fact that the organization must assess each instance individually.
3. Disability Insurance is no Different than Life Insurance:
Disability insurance is a distinct type of coverage from both life insurance and critical sickness protection. Unlike life insurance, disability insurance does not offer a lump sum payment. Instead, while you are disabled, you will get regular payments that can replace your income in full or in part (depending on your policy) while you are unable to work.
4. Piling up Disability Insurance Policies Ensures More Coverage:
Your disability insurance coverage is constantly connected to your current income and employment status. Regardless of how many policies you hold, the value you will receive is capped. You will never be able to live a life of luxury as a result of your disability policies. Unlike critical sickness insurance policies, disability protection policies are not “stackable.” Depending on your policy, disability coverage covers a proportion of your income, ranging from 50 to 70% of your entire income.
5. Your Beneficiaries Can Make Claims at any Time:
Disability insurance coverage may include a claim deadline.
Is It Worth It to Rely on Worker’s Compensation?
The insurance coverage supplied to you by your employer is a policy that may be sufficient to cover you in the event of an accident. However, much depends on the level of protection in place. If your company has Worker’s Compensation insurance, you will only be eligible for benefits if you are injured on the job. This means that if you are engaged in an accident outside of work or become disabled due to your health outside of work, you will not receive any income replacement coverage. This could be a problem because your chances of becoming disabled at work are lower than your risks of becoming disabled outside of work. Your boss wants to reduce your risks of being incapacitated, but he or she is more concerned about it happening at work. According to some estimates, up to 90% of disability cases begin outside of the workplace.
This policy will protect you outside of work if your employer has a group disability plan in place, whether it’s in addition to or lieu of Worker’s Compensation. Even if your impairment is caused by something other than work, your coverage will expire as soon as you quit your current workplace.
Many start-ups and other smaller businesses may not have WSIB coverage, despite the fact that your employer should. Worker’s Compensation can only cover a fraction of your pre-accident earnings as well as some additional medical expenses. Prescription medications, medical treatments, chiropractic care, physiotherapy, rehabilitation, and training are some of these costs.
Individual disability insurance may not be necessary if you already have group disability insurance through your employer. Even if your employer provides this benefit, be sure you understand the policy’s terms, what it covers, and what proportion of your pay it covers. If your firm employs Worker’s Compensation, it also provides you with additional protection. Keep in mind that even if your workplace provides you with this level of security, it will terminate the moment you lose or leave your employment. Individual disability insurance is the greatest approach to ensure that you are protected regardless of what happens.