Disability insurance is designed to protect you from the possible loss of income. What's the possibility of this happening? It's more than you'd imagine. Why should you consider it? It's the only sure way to provide guaranteed coverage and guaranteed premiums.

Types of disability insurance:-

Individual disability insurance

Those whose employers do not provide benefits, and self-employed individuals who desire disability coverage, may purchase their own policies on the open market. Premiums and available benefits for individual coverage vary considerably between different companies, for individuals in different occupations, and by state and country. In general, premiums are higher for policies that provide more monthly benefits.

High-limit disability insurance

Traditional disability carriers have limitations on the monthly benefits that can be purchased, which limit the benefits for high income earners. Benefits will normally cap at $20,000-$25,000 of monthly benefits except in the high-limit disability market. High-limit disability insurance is designed to keep individual disability benefits at 65% of income regardless of the income level.

Key-person disability insurance

Key Person Disability Insurance provides crucial benefits for any functioning business to protect the company from financial hardship that may result from the loss of a key employee due to disability. Key Person coverage provides cash flow to help a company move forward and maintain a profit in the event a key employee becomes disabled.

Business overhead expense disability insurance

Business Overhead Expense (BOE) coverage is designed to reimburse a business for overhead expenses should the owner experience a disability. Eligible benefits include: Rent or mortgage payments, utilities, leasing costs, laundry/maintenance, accounting/billing and collection service fees, business insurance premiums, employee salaries, employee benefits, property tax, and other regular monthly expenses.

Why should you consider a personal disability insurance plan?

* Worker's Compensation only covers work related accidents.

* Unemployment insurance only covers 15 weeks.

* Canada Pension Plan: Are you comfortable relying on the government for a benefit that can change?

* Group and association coverage can fill a valuable role in long-term disability protection. However, the benefit may be limited by the definition of disability and coverage amount.

Features of Disability Insurance

* Provides tax-free income if you become sick or injured.

* Ideal for anyone who earns an income and does not have disability insurance through their employer.

* Unlike plans provided through employers that can end at any time, personal disability insurance plans cannot be taken away from you.

* Depending on your profession, it could provide income during times of inability to perform your "own occupation," even though you are working other jobs.

* Benefit period (the length of time money is paid during your disability) can vary from 2 years to age 65.

* The waiting period before your first cheque arrives can be selected as 30, 60, 90, or 120 days.

Major Uses of Disability Insurance

* Replace lost income during times of disability.

* Provide money to pay business overhead in your absence.

Why Do I Need Disability Insurance?

Most people are unaware of the startling disability statistics. Often they have purchased life insurance to protect their families in the event of death.

In fact, the odds are far greater that a person will become disabled in a given year than that he or she will die. There is at least an eight times greater chance of suffering a disability of at least 90 days as compared to the chances of death (up to age 37). While death may be inevitable, disability is more probable at any given age.