Disability insurance is allowed under the law and is designed to protect your personal finances and the financial interests of your dependents if you develop long-term disabilities such as fibromyalgia or chronic pain. These disabilities may make it difficult for you to work, which results in a loss of income. A disability lawyer may be able to help you apply for worker’s compensation disability and other programs. If you do not qualify for worker’s compensation or other programs to replace your income, this insurance can keep your family financially afloat.
Protecting Your Financial Future
About one out of every four people will become disabled by the age of 67. Your ability to earn an income is likely to be your biggest asset. A disability curtails your ability to go to work and earn a living. Without your income, it might be impossible to pay your rent or mortgage, pay your utilities and put food on the table. Disability insurance provides you with monthly income in the event that you experience a disability that is expected to last for at least one year. Once the disability is certified by your physician, you begin receiving the payments.
Covering Basic Expenses for Your Family
The amount of insurance for a disability that you need depends on your dependents and your expenses. If you have a mortgage and one or more children, you will need more insurance for disability income compared to a person who has no dependents or who has paid off the mortgage. If you were not working, you could have fewer expenses related to going to a job, such as no need for business attire and no daily commuting expenses. Make sure that your monthly payments from your insurance policy would meet at least 90 percent of your current income. Keep in mind that inflation could increase your need for income in the future. A monthly payment of $2,000 CAD in 2017 may not buy as much 10 or 20 years from now.
Supplementing What Your Employer Offers
While about 40 percent of employers offer short-term insurance for a disability and 33 percent offer long-term insurance for a disability in their job benefits, most do not. Of those who do have an employer-based insurance for disability, it only covers about 60 percent of their monthly income. Purchasing a private insurance policy for a disability could supplement any coverage provided by your employer. Under disability law, you have the right to use private insurance to supplement the remainder of your income. If you do not have employer-based coverage, a disability lawyer can work with you to find the right coverage and arrange payouts. To learn more, visit Disability Lawyer Toronto.