DISABILITY INSURANCE
SCARBOROUGH

Disability insurance acts as a financial safety net by providing a portion of your income if an illness or injury prevents you from working. This ensures that even when you’re unable to earn a paycheck, you can still meet your daily expenses, pay bills, and maintain your lifestyle without financial strain.

Short-Term vs. Long-Term Coverage

• Short-Term Disability Insurance: Covers temporary disabilities caused by injuries, illnesses, or recovery from surgeries. The benefit period typically lasts from a few weeks to several months (usually up to a year).
• Long-Term Disability Insurance: Provides extended coverage for serious conditions that prevent you from working for years or even permanently. Benefits can last for several years or until retirement, depending on your policy.

Disability insurance typically pays out a percentage of your pre-disability income, usually ranging from 60% to 85%, depending on the policy. This replacement income helps you cover essential expenses such as mortgage payments, rent, utilities, groceries, and other financial obligations.

Waiting Periods (Elimination Periods)

Every disability insurance policy includes a waiting period—also known as an elimination period—which is the time between when a disability occurs and when you start receiving benefits. This period can range from 30 days to several months, depending on the plan. A shorter waiting period usually means higher premiums, while a longer one reduces the policy cost.

There are different types of disability insurance policies based on their renewability:

• Non-Cancelable Policies: The insurer cannot cancel your policy or increase your premiums as long as you continue to pay your premiums on time.
• Guaranteed Renewable Policies: You have the right to renew the policy, but insurers may increase premiums based on policyholder groups.

Choosing the right option ensures that you remain protected throughout your career without unexpected changes in coverage.

Many policies offer optional riders that enhance coverage, such as:

• Cost-of-Living Adjustment (COLA): Increases your benefits over time to keep up with inflation.
• Partial Disability Benefits: Provides financial assistance if you can work part-time but experience a loss of income due to a disability.
• Future Increase Option: Allows you to increase coverage in the future without undergoing additional medical exams, ensuring your policy keeps pace with your income growth.