Disability insurance:
an essential protection for self-employed workers.
Disability insurance replace your lost income in the event you are unable to work due to injury or illness.
this income protection is especially important for self-employed workers who cannot benefit from employer-sponsored disability plans or government programs.
Every financial security advisor has their favorite products or services. As far as I'm concerned, it's disability insurance.
This preference stems from my personal background; I went through a difficult time when a complication following a trivial accident prevented me from working for a long time.
In this article, I explain why disability insurance is the most valuable steady income protection.
Disability insurance replace your lost income in the event you are unable to work due to injury or illness.
Main benefits of disability insurance:
- Financial security in case of inability to work.
If you are unable to work due to a health problem, disability insurance provides you with a non-taxable income. This financial support continues until you can return to work. - Assistance during disability.
Insurance companies offer a program so that you can return to work as soon as possible. - Payment of bills.
Disability insurance can cover the operating costs of your business such as rent, salaries… - Total protection.
You are covered 24h/7. This includes incidents that occur outside of working hours or even in another country.
cost of your disability insurance.
Disability insurance premium are very flexible and can fit all budgets. Premium price can vary depending on:
- Age.
Generally, the younger you are, the less expensive it is. - Health Status.
Your current health can affect premium rates. - Duration of Coverage.
You can choose different coverage durations, ranging from a 2-year period to coverage extending until the age of 65. - Occupation.
The nature of your job influences the cost, as some occupations are considered higher risk. - Latency Period.
This is the waiting period before the insurance starts paying out. This choice is up to you; you can decide on a period of a few days or six months before receiving the first payment.
Disability insurance provides a tax-free income. This financial support continues until you are able to return to your job.
Eligibility and Restrictions:
- General eligibility for All Canadian workers and permanent residents: Most professions in Canada are eligible for this insurance, with few exceptions.
- Restrictions for part-time workers: Some restrictions apply to individuals who work part-time (less than 30 hours worked per week).
did you-know?
Disability insurance may cover children and unemployed people.
Disability insurance can cover together or separately conditions arising from physical illnesses, psychological illnesses, or disabilities due to an accident.
In conclusion, disability insurance is essential for workers, providing crucial financial support and peace of mind during times of unforeseen health challenges.
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