Background Arrow image

CONNECT US

  • Like Blue Umbrella Financial on Facebook
  • Follow Blue Umbrella Financial on Twitter
  • Follow Blue Umbrella Financial on Google Plus
  • Follow Blue Umbrella Financial on Linkedin
  • Follow Blue Umbrella Financial on Linkedin

We compare, you save!

Call us @ 416 822 4783

DISABILITY INSURANCE: A Guide By Needs

Updated on Jul 02, 2015

The long-term disability insurance products available to Ontario workers vary, but it serves every employee in the province well, when the worst-case scenarios come to pass, to carry some form of protection. When Toronto workers’ disability insurance needs demand the most comprehensive coverage, Blue Umbrella Financial Services takes pride in dependable monthly benefits safeguarding health, income, and savings.

Among Ontario’s disability insurance providers, Blue Umbrella Financial Services offers coverage options to protect both your physical and financial wellbeing as befits your needs. The potential disability insurance needs of any among Toronto’s workers may vary as greatly as the circumstances that could call one of our policies into action. When you face the worst, sound advice in purchasing a precautionary disability insurance product could mean a difference between peace of mind and an ongoing financial hardship while you recover from illness or injury.

Consider some general facts about the several types of disability insurance available throughout the Greater Toronto Area and the Province of Ontario. Remember, choosing the right disability insurance is about more than anticipating the worst possible threat to your health and income; it’s also about anticipating the most comprehensive safety net to see you soundly through it.

 

  • A TALE OF TWO COVERAGES

Generally speaking, consider the two primary types of disability insurance:

 

  • LONG-TERM DISABILITY INSURANCE

    • Portion of monthly income paid to you when you can’t work until you resume working, turn 65 years old, or die; typically offered through employer

    • Covers either “any occupation” (the ability/inability to perform any work at all) or “own occupation” (the ability/inability to perform the specific kind of work you performed prior to injury or illness) – often, covering “own occupation” for the benefit period’s first two years, then “any occupation” after that

  • CRITICAL ILLNESS INSURANCE

    • Often independently purchased through an insurance broker; pays out a (tax-free) lump-sum benefit if you’re diagnosed with any of several qualifying illnesses, without the payment impacting your further disability-benefit eligibility

    • Coverage of illnesses may vary policy-to-policy, provider-to-provider

    • Can be expensive: a 40-year-old non-smoker may pay upward of $2,000 premiums annually over a 10-year term for a $200,000 policy

    • Many policies written with ultra-specific language can make payout requirements tricky to meet

 

Overall, long-term disability insurance makes the most sense and provides the most comprehensive, efficiently delivered benefits without overly stringent limitations. On the other hand, if you lack the earned income necessary to collect disability benefits, a comprehensive critical illness insurance can be a godsend to support a family while combatting a covered malady … if you’ve chosen a competitive policy with a broad range of covered diseases.

 

  • THE TALE OF THE TAPE

In more than a few cases, choosing a disability insurance policy can come down to the bottom-line, black-and-white figures.

When looking over your long-term disability insurance – preferably, with your employer’s HR representative at hand – breathe easy if the group plan covers at least 60% of the pay you’d otherwise lose in the event of an injury or illness. Coverage of 40% to 50% is adequate, less a spouse and children to provide after.

Take into account as well whether or not your group’s disability insurance plan comes with a cap. Some Ontario providers’ products will pay out 60% of lost gross income or a maximum of several thousand dollars, whichever comes first. The more you make, the more it may behoove you to purchase additional tax-free private coverage.

Be wary too of critical illness insurance policies that specifically exclude certain illnesses, such as benign melanoma or less life-threatening cancers. Keep in mind, critical illness insurance policies often aren’t standardized. Paying out your policy is ultimately at the insurance provider’s discretion and can lead to wrangling over specific language written into the agreement.

 

No Toronto worker should ever face lost wages or declining health without a sound disability insurance policy. Nor should you choose a disability coverage product without sound, experienced professional counsel. Your Blue Umbrella Financial Services consultation costs you absolutely nothing, but offers the enlightening voice of experience. Contact us to today for more information.

Free Consultation !

  • captcha