Self-Employed in Toronto? Why Disability Insurance is So Important

Owning your own business, no matter the size, can be overwhelming. There are so many different things that self-employed individuals are expected to think about and deal with that never even cross the minds of those employed by someone else. If you are self-employed in Toronto, one of the most important things that you should be thinking about is disability insurance.

Being self-employed can be stressful and demanding and stress is known to cause a host of medical issues. Some self-employed individuals work in physically demanding jobs, jobs where they are more likely to suffer a work related injury.

How are you going to pay for the necessities of life and maintain your business if an unexpected illness or injury takes you offline?  Employed individuals are often protected through employer provided disability insurance, but if you are self-employed you don’t have that luxury. If an employed person suffers an injury or illness that takes away their ability to earn an income, their employer provided insurance may provide them with some income. If you are self-employed, you need to have a plan and resources in place to protect yourself and your business in case you have an accident or develop an illness.

 

How does disability insurance work when you are self-employed? If you are in an accident and are unable to work, or if you suffer from an illness that takes away your ability to earn an income, disability insurance will provide monthly payouts that allow you to continue providing for your family, allowing you to focus on rehabilitation. Instead of having to stress over how you will pay your bills, disability insurance gives you the chance to focus on your health. What can you use the funds for? Disability insurance payouts can be used for whatever you need. Monthly mortgage payments, household bills, child care, in-home medical care or medical expenses can all be covered by disability insurance.

 

Disability insurance is also an important consideration for those individuals employed by someone else. When you have an income coming in you can obtain your own disability insurance. Many people make the mistake of counting on employer covered disability insurance but if their employment ends so does their coverage and obtaining disability insurance is very limited and minimal. Also, premiums increase with age so those who enjoy stable employment for many years find themselves in a very expensive situation when they leave their employment and try to obtain their own coverage only to find that disability insurance coverage is less affordable than it would have been had they pursued it when they were in a younger and healthier condition.

 

The lifestyle you currently enjoy, your child’s post-secondary education, even homeownership depends on your ability to earn an income and be a provider. The success of your business also depends on this too and so making sure that you have put provisions in place just in case anything happens is a smart way to ensure that your company is protected. Disability insurance is one such provision. Don’t leave anything to chance.

For more information about why disability insurance is so important, especially if you are self-employed, please contact Independent Financial Concepts Group by calling 416-849-1653 or visit

www.wecoveryou.ca.

 

In a Turbulent Economy will Your Employer Provided Long Term Disability Insurance Really Protect You???

When you are working and your employee insurance plan provides long term disability insurance, you may feel protected in the case of an injury or illness that requires you to be off work for a significant period of time. However, what happens if your company is downsized and you are laid off, or if you lose your job? Although the Canadian economy does seem to be rebounding, it is still in a very precarious position. If you have long term disability insurance through your job you are protected now – but if you lose your job, you also lose your long term disability insurance. 

First of all, what is long term disability insurance and why do you need it? Well, long term disability insurance is a type of insurance plan that protects you if you are injured or suffer from an illness and need to take a significant amount of time off work. Long term disability insurance will provide you with a monthly income that you can use to pay for and support yourself and your family while you are off work. Since it is estimated that 30% of working individuals between 25 and 65 will get into an accident or contract an illness that requires long term recuperation (3 months or more), with nearly 60% of these injuries occurring on personal time, it is clear that long term disability insurance is incredibly important. 

As mentioned, if you lose your job, your employer provided long term disability insurance ends. Your job may be secure right now, but with an economy that is continually perched precariously on the edge, there is no guarantee that it will remain secure.

Are you asking yourself what will happen if you purchase this private long term disability insurance and then lose your job? That is understandable. The good news is that, if you take the time and obtain a long term disability insurance plan through an insurance broker, it is likely that you will have chosen a coverage plan that could be anywhere from  2 to 5 years or to age 65. This means that even though you are no longer working, you are covered for the length of your term. Rather than losing the long term disability insurance coverage provided by your employer, this insurance coverage does not end until the policy term ends – meaning you are protected no matter what happens with your job.

Protecting yourself and your family is critical if you want your future to be stable and secure. Relying solely on the long term disability insurance coverage provided by your employer can leave you in a lurch if you ever find yourself out of a job. Most importantly, your health could change at any time and you may be offered restrictions on your coverage when you apply or even worse, you may not qualify at all for any type of coverage.

To find out more about long term disability insurance and the benefits of obtaining a long term disability insurance policy, please contact Gary Mandel at Independent Financial Concepts Group at 416-849-1653 or visit www.wecoveryou.ca.

Critical Illness vs. Disability Insurance: Do You Need Both?

Preparing for your future and the future of your family can be both an exciting and intimidating time. Buying a house, establishing yourself in a stable career, or building your family are all promising things that you may see in your future. But there are some things that you may not foresee– such as a critical illness or a disability – which you also need to prepare for.  

Preparing for a critical illness or a disability by obtaining insurance is a smart choice. But critical illness vs. disability insurance– do you need both?  Although some people think that both critical illness and disability insurance are not necessary, often times having both critical illness and disability insurance protects you when only one of them may not. 

What is critical illness insurance? Critical illness insurance is a type of health insurance that covers you should you become critically ill. It comes in the form of a lump sum payment that gives you the freedom and security to pay for whatever may arise during the course of your illness, or if possible, your treatment and recovery. 

What is covered by critical illness insurance? Critical illness insurance covers a multitude of unpredictable illnesses. These can include cancer, heart attack, stroke, Alzheimer’s, multiple sclerosis, organ transplants, and many others.

What are the benefits of critical illness insurance? If you are forced to take a significant period of time off work to receive treatment or to recover from a critical illness, most public and private health plans do not provide funds for the daily expenses you are responsible for, meaning you could face financial strain if you have not made provisions for this stressful situation. Obtaining critical illness insurance is therefore essential.

What is disability insurance? Disability insurance provides a monthly payout if you are unable to return to work, thereby replacing a portion of your income. If you suffer from an illness or are in an accident that prevents you from continuing in your current occupation, this can severely impact your ability to continue to make the payments that are vital to your family’s security and livelihood.

What about employer provided insurance programs – do they provide these types of coverage? Some may, but typically they are offered on a limited basis, providing coverage for short periods of time. Relying on your employer’s coverage can become an issue – so seeking supplemental insurance coverage can be critical.

Critical illness vs. disability insurance – do you need both? Having one or the other is great, but having both is even better. Planning for one tragedy that can impact your income but not another isn’t ideal. To make sure that you and your family are protected in the event of an accident or illness, having both ensures that you will be able to provide for them, while continuing to maintain your financial security.

Purchasing life insurance to provide for your family in the event of your passing is incredibly important. However, providing for them in case of a disability or critical illness is also essential when preparing for the security and future of your family. Making sure that anything that can interrupt your income is covered by an insurance policy is crucial if you want to remain financially protected no matter what happens in life.

To find out more about critical illness vs. disability insurance and why it is a good idea to have both, please contact Gary Mandel at Independent Financial Concepts Group by calling 416-849-1653 or visit www.wecoveryou.ca 

Disability Insurance Coverage in Ontario – Can I Get It If I’m Not Working?

 

In Canada, approx. 3.6 million people have disabilities (according to the TDSB website http://www.tdsb.on.ca/_site/viewitem.asp?siteid=15&menuid=8564&pageid=7492). In Ontario, approx. 1.5 million people have disabilities. The disability rate increases with age and is expected to increase with the aging population. 

Over half (54 percent) of working age adults with disabilities are either unemployed or not in the labour force. Ontarians with disabilities reported an average income of $22,543. Only nine percent of adults with disabilities have a total income of over $50,000 – this number likely represents individuals who had disability insurance coverage before becoming disabled. Eighty-four percent of women with disabilities and sixty-five percent of men with disabilities reported income of less than $30,000. Forty-six percent of adults with disabilities in the labour force make less than $15,000 a year. These are some scary numbers. 

Why are these numbers important? They’re important because they demonstrate why it is crucial to have your own disability insurance coverage in Ontario even if your employer offers you disability insurance coverage.  

Disability insurance in Ontario often insures your earned income against the risk that a disability will make working uncomfortable (this includes psychological disorders), painful (as with back pain), or impossible (as with coma). It includes paid sick leave, short-term disability benefits, and long-term disability benefits. 

Many people in Ontario purchase their own disability insurance policies on the open market. People make this choice for a number of different reasons. Where an employer is paying for part of your benefits or WSIB is involved, many Canadians have reported incidences where: 

1.       They have been pressured to return to work even when they felt that they weren’t ready.

2.       Had a doctor other than their personal physician, rather, a physician hired by the insurance company making the final determination as to when they should return to work.

3.       Were pressured to participate in employer sponsored programs.

4.       When returning to work was given a completely different job.

5.       Saw their benefits decline over time and more…

When you purchase your own disability insurance policy in Ontario there are a number of benefits: 

1.       You are the customer and may receive improved service from the insurance company.

2.       You can arrange a policy over a term, guaranteeing your premium and coverage.

3.       Your premiums won’t increase with age.

4.       You can arrange a policy where your income won’t decline over time.

5.       You will not lose your disability insurance coverage if you lose your job or become unemployed. 

Point numbers 4 and 5 above are very important because disability premiums can increase significantly with age, and time can be your enemy because if a disability occurs, it will impair your ability to qualify for disability insurance coverage in Ontario. In addition, disability insures income, so you must be employed or have provable income to qualify for disability insurance coverage. If you are not employed and have limited or no income; you won’t qualify for disability insurance coverage in Ontario.  

Individuals who rely on disability insurance coverage provided by an employer take considerable risk because when their employment ceases, so does their disability insurance coverage. For example, if a 30 year old individual had a job with a company for 10 years and then lost their job, they would not be able to qualify for disability insurance coverage in Ontario until they found another one. In addition, if they decided to purchase their own disability insurance coverage upon gaining new employment, their premiums would be considerably higher than had they purchased a term disability insurance policy even 5 years sooner.

There are many good and valid reasons that an individual should have their own disability insurance coverage. The last thing you want to do is wait until you become one of the over 3 million people who have a disability in Canada to find out that you have no options. For more information please visit www.wecoveryou.ca or call Independent Financial Concepts Group at 416-849-1653.

Disability Insurance in Ontario is Not Available to Individuals Once They Have Become Unemployed

Disability Insurance in Ontario provides you with income if you suffer a disability that hinders your ability to work. If you suffered a disability and couldn’t work, the disability payment you would receive (no matter who the insurance provider is) is based on a percentage of your income.

Most people feel secure when they obtain a job that offers disability insurance as part of their benefits package. The problem is that only relying on your employer’s disability insurance provides short term gain (low disability insurance premiums, deducted at the source) with long term consequences.

If you become unemployed you will no longer be insured. Here are the two main reasons why Disability Insurance in Ontario is something that the primary income earner in any household should have:

Once you do not have an income, you will not qualify for Disability Insurance in Ontario.
The cost of disability insurance premiums in Ontario increase as you age. Additionally, if you become unemployed, obtain new employment and then realize that you need additional disability insurance, your premiums will be much higher than they would have been if you had started contributing to a disability policy at a younger age.

Most insurance providers offer a number of different disability insurance products that provide different benefits. There is term disability insurance that offers the lowest disability insurance premiums.

There are other disability insurance policies that return part of your premiums if you don’t make a claim, and policies that will guarantee your premium for the life of your contract. A good Life Insurance Broker will be able to compare the different disability insurance products and provide you with information about the costs and benefits.

One you have selected a disability insurance product that suits your needs, the insurance company will present you with an insurance policy. Your disability insurance policy is a contract. Once the insurance company signs off on your disability insurance contract, it is binding for the insurance company. They can’t make any changes to your contract, but you have the right to.

If you were to suddenly find yourself unemployed and while unemployed suffered a disability, your disability insurance policy would provide you the amount of coverage and income agreed upon at the time you signed the contract.

Also, if you obtain a disability insurance policy that guarantees your premiums for the life of your contract, when you are older, you will enjoy very low insurance premiums and maximum income protection. For more information about disability insurance in Ontario please visit http://www.wecoveryou.ca/ or call 416-849-1653.