Unlike Workplace Safety and Insurance Board (WSIB) claims, which only cover injuries that occur in the workplace, personally owned disability coverage protects from injury and illness, regardless of where the health issue occurs or develops. Claims for stress or mental illness, physical injury, or diagnosed conditions can be made. In many cases, such health issues can affect your ability to earn an income for weeks, months, or even years. Disability coverage enables you to take time off needed to recover.
All disability plans are based on your occupation and current income and will vary in cost depending on the risk associated with your job. Disability insurance quotes can be tailored to suit your needs and budget, depending on the waiting period, benefits period, and the provisions you add to your plan. Even if you have long-term disability (LTD) benefits through your employer’s benefits program, you may not be adequately covered. Many LTD plans have relatively low maximum benefit amounts and limited “own occupation” protection periods. It often makes sense to purchase additional disability insurance protection to complement the LTD coverage and maximize your overall protection.
- Disability payments can provide for up to 66% of your income.
- If your premiums are paid personally, you will receive your payments as a monthly tax-free income benefit.
- Monthly payments can continue up to age 65 if your disability continues or reoccurs.
- Disability insurance plans typically require waiting periods before the benefits commence, ranging from 14 to 180 days (OPA has options of 14, 30 and 120 days).
- If you make a claim, your premiums are waived.
- Protect yourself against unexpected setbacks.
Several policy provision options are available with disability insurance including:
Own occupation: An own occupation provision allows you to receive disability payments if your disability prevents you from performing your specific occupation, whereas an “any occupation” provision only provides benefits if you are unable to do any job.
Cost of living adjustment (COLA): This provision helps your disability payments keep up with inflation by increasing your payments annually.
Business owners can also protect their key executives with an income loss protection plan, providing an increased taxable benefit with tax-deductible premiums to the corporation. These income loss plans can be used to top up an existing group plan that may not provide for its executives’ income levels.
For a quote contact OPA at [email protected] OR 416-441-0788 option 2.
This blog post contains content that was originally published by Cowan Insurance Group and is used here with permission. The content has been modified from its original form for OPA’s insurance products.
