What is disability insurance?
Disability insurance is financial protection that protects you in the event that you are no longer able to work and earn an income.
Generally speaking, disability insurance therefore provides sufficient replacement income to cover basic living expenses, such as rent or mortgage repayment, utility bills, food and healthcare.
This type of insurance can be acquired through individual insurance or a group insurance plan offered by your employer.
What type of coverage does disability insurance include?
Disability insurance coverage options can vary by insurance company. But in general, there are two types of coverage:
Short-term disability insurance
This offers a monthly benefit in the event of temporary disability, caused by illness or injury. The period for which benefits will be paid generally varies between 3 and 24 months. This coverage is often used to replace income lost during a short period of disability.
Long-term disability insurance
This offers a monthly benefit in the event of prolonged disability. The period for which benefits will be paid can vary, but it can last until retirement age. This coverage is often used to replace income lost during a prolonged period of disability.
How much coverage should I choose?
The recommended amount of coverage for disability insurance depends on several factors, such as your income, monthly expenses, lifestyle and the level of coverage you want. However, it is recommended that you take out disability insurance that covers at least 60% to 70% of your monthly income.
It's also important to consider the length of coverage you want, as some policies cover only a limited period, while others offer lifetime coverage.
Consult your AccèsConseil advisor to determine the amount of coverage that best suits your financial situation and needs.
Who is disability insurance for?
Did you know that anyone who depends on their income to support themselves and their family should consider disability insurance? This includes the self-employed, contractors, as well as full-time and part-time employees who are not covered by their employer.
If you have debts, mortgages, school fees for your children or expensive medical care, you should strongly consider disability insurance, as it protects you in the event that you are unable to work.