DISABILITY INSURANCE
ETOBICOKE

Keeping You Covered When Health Gets in the Way

When you are too unwell or badly hurt to go to work, disability insurance in Etobicoke helps fill in that gap with monetary assistance by compensating a share of your normal earnings- generally between 60 and 85 percent of your usual pay. This insurance will ensure that you can maintain your mortgage, rent, groceries, and other expenses, so you won’t need to withdraw money from your savings or incur debt.

Types of Disability Insurance Coverage

Short-Term Disability Insurance

The short-term disability insurance serves as a kind of financial safety net in cases of temporary setbacks. Be it recovery after surgery, battling a major illness, tackling mental issues, or taking maternity leave, this insurance helps to cover the gap as you recover.

Summarizing Your Benefits:

• You’ll be receiving the benefits between 9 and 52 weeks (commonly between 13 and 26 weeks)
• You will start receiving payments after a waiting period of 0 to 14 days from the date you become disabled
• Your loss of income will be covered by at least 60% or 85% with this insurance

Short-term insurance is ideal when you are unable to work for a certain period, and with the right treatment and time, you will recover. 

Long-Term Disability Insurance

The long-term disability insurance coverage is designed to provide protection for illnesses that may last from a few years to even decades. Such serious conditions may cause significant disabilities to your working capacities (such as cancers, cardiovascular diseases, neurological diseases, like MS, chronic pains, or even serious mental illnesses).

Summarizing Your Benefits:

• You will come across different flexible coverage options ranging from 2 years to 5 years or retirement
• You will have to go through a waiting period of 90 to 180 days starting from the time you become disabled
• The way “disability” is defined may have different meanings depending on the policy, whether you are unable to perform in your existing job or have completely lost the ability to perform in any job, despite being qualified

Why It’s Smart to Have Both

Most individuals prefer to take both the short-term and the long-term disability insurance together. Short-term policies are helpful during the actual recovery period. In contrast, long-term policies are offered to protect your income in the event of a prolonged absence from work. Combined, they provide you with total financial protection regardless of the length of time you are unable to work.

Protecting Your Income, Protecting Your Future

Benefit amounts under disability insurance in Etobicoke are generally a portion of your income before the period of disability starts. It serves as a 60% to 85% replacement of your general income, helping you manage your existing financial commitments. It allows you a smooth recovery without having to stress about borrowing money to pay your mortgages, rent, groceries or any other expenses.

Waiting Time (Elimination Periods)

Any disability insurance in Etobicoke comes with a waiting period, also referred to as an elimination period. This is the period between the beginning of your disability and the start of benefit payments. Depending on the policy you choose, the waiting period can be as short as 30 days to several months before it is over.

Typically:

• The shorter the waiting period, the higher the premiums. However, you gain access to benefits quickly.
• Higher waiting time will lower premiums. However, this means that you may spend a longer time covering your bills before the benefits come.

Additional Riders (Policy Enhancements)

Speaking of your choices of disability insurance in Etobicoke, you need to keep in mind optional policy riders that can be added to your policy to make it better suit your changing finances and needs. These riders are add-on security details that give extra protection where general policies may fail.

Common Policy Riders to Consider:

1. Cost-of-Living Adjustment (COLA) Rider
   This rider assists in ensuring that your benefits are in line with inflation. As soon as you start getting benefits due to a disability, your payment will be elevated each year based on the Consumer Price Index (CPI) or a predetermined amount (usually 3 percent). This safeguards the actual worth of your benefits in the long term.

2. Partial Disability Rider
   A partial disability rider covers your expenses in case you continue to work, but at a limited capacity. In case a disability prevents you from earning your full income, the rider provides residual benefits to cover the shortage.

3. Future Increase Option (FIO) Rider
   This rider allows you to increase the amount of coverage offered as your income rises, without requiring additional medical underwriting. You are allowed to increase your coverage each year or after reaching certain milestones in life, under predetermined caps, even if your health changes.