Disability Insurance

Disability insurance is an income replacement insurance coverage, when, the insured is unable to work because of injury/accident or sickness. The doctor decides it. The benefit limit, can be purchased on the basis of the formula of qualifying insurable monthly earnings (QIME) that is calculated as on self employed worker’s gross revenue divided by 2X75% and divided by 12, to find out eligible monthly benefit. The benefit period (2, 5 years or to age 65 or 70) and elimination period (0, 14, 30, 60, 90 or 120 days) are other features to adjust the premium according to need and affordability. Disability insurance benefits are always integrated with other such benefits available like WSIB or auto accidental benefits. Disability insurance benefit coverage can be broad on 24/7 or non occupation basis. Disability insurance policies are structured on basis of Loss of income or loss of time. Usually employees working on net income basis and where employer-employee relationship exists; are covered under employee benefits for their disability coverage but still employee can purchase his or her own benefit too, as a top up benefit. Premium is determined according to class of occupation too. Riders are available according to the profession. Most of the time, the individual disability insurance benefits are optional and because of the benefits claims the premium remains the same. Insurance companies increase the premium not on individual basis but on occupation class basis. To understand better refer to your insurance broker.