Why should disability insurance be a priority?

Disability insurance guarantees that becoming disabled won't rob you of your source of income. Depending on the type and severity of your disability, you might find yourself unable to earn a living. Disability insurance eliminates this concern by replacing roughly 60 to 85 per cent of your former income, covering your financial losses and ensuring that you stay on top of your expenses.

Nobody is exempt from the need for disability insurance. One in three people will be forced out of work for 90 days or longer before they reach 65 - an enormous statistic that sheds light on the range of people that this insurance applies to. Regardless of age, gender or profession, temporarily or permanently disabled workers might find themselves out of work for months or even years. A car accident on the way to work? A skiing accident on holiday? A heart attack? Disability insurance has you covered.

Disability coverage replaces the income you can't earn, making up for the losses you suffer as a result of not being able to work. Depending on the specific plan, your benefits might be paid tax-free while other plans will still be taxable. However, keep in mind that no plan will ever surpass your income prior to your disability.

Disability insurance comes in all shapes and sizes, and from a range of different sources. You can opt for an individual insurance plan or you can go through an employer or union. If you take the latter approach, your insurance will come as a group plan. Other options include special purpose plans, which come in the form of creditor insurance and government plans. There are even specifically designed individual plans for self-employed workers. What you decide on should depend on your personal situation.

Becoming disabled requires more than just a provincial health plan, which will help out with your medical bills but won't go much further than that. To replace lost income, the only solution is a good disability insurance plan. If you are involved in an accident or you unexpectedly acquire a serious illness, you want to know that the life you have built doesn't go down the drain.