Canada Disability Insurance, Disability Insurance Canada

By: EconomyWatch   Date: 26 May 2010

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Canada disability insurance provides cover for individuals during periods when they are debilitated due to illness or injury and are therefore unable to earn a living. In case of a disability, one might be unable to work for a short or a long period of time, thereby putting at risk his/her ‘financial future,’ commented John Young, CEO of RBC Life Insurance Company Canada, while taking about the un-preparedness of Canadians with regard to disability. Although some employees are covered by disability insurance by their companies, the amount of coverage varies from firm to firm. Those who are self employed, however, need to take Canada disability insurance for themselves. Many Canadians are under the impression that they are protected by the government-sponsored disability insurance policy. However, this cover might not be sufficient, since the living standards of individuals vary.

Types of Canada Disability Insurance

Personal Canada Disability Insurance - To be prepared for any personal eventuality related to an injury or sickness, one can opt for personal insurance. In this type of policy, the income that you would need to meet your requirements is identified first and you are covered by insurance accordingly.

Business Canada Disability Insurance - This is best suited for business owners and aims to reimburse business loans and expenses. It also includes the hiring of a new employee to replace a disabled one, since this type of insurance aims to maintain the profit of the company in case of any disability-related mishap.


Considerations for Buying Canada Disability Insurance

The first consideration should be to look for the exclusions in your disability insurance policy. Check that your Canada disability insurance gives protection against both injuries and illness. Some policies do not cover self-inflicted injuries, disability caused due to war or pregnancy. The ‘Non occupational Policy’ does not cover you in case of work hazards under the assumption that you must have been covered by the employer.

Choose a non cancellable Canada Disability Insurance policy, which might be more expensive but binds the insurance company to honor its premium and coverage. A cancellable policy gives the insurance company the power to increase your premium and cancel your policy on a class-wide basis.

You need to have an unbiased view when selecting the Canada disability insurance policy. It is advisable to enlist the services of an independent broker, so that you can choose the policy that best meets your financial plans.


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