Benefit Payments
Some plans pay benefits based on loss of income and some pay based on ability to work.
Some plans pay if you can’t work in your own occupation.
Some plans only pay if you can’t work in any occupation.
Some only pay if you can’t work in any occupation for the rest of your life (called total and permanent disability).
Often, plans combine these definitions of disability and give time limits.
For example, a plan may pay benefits for two years if you can’t work in your own occupation. After two years, the plan may only pay if you can’t work in any occupation.
Most disability insurance gives you monthly payments while you are ill.
Critical illness insurance pays the whole amount in one payment.
Questions to ask:
· How does this policy define a disability?
· Will I be paid if I can’t do my current job or any job?
· Is the policy noncancellable, guaranteed renewable, or commercial?
· Are there limitations or exclusions?
· How long will I get benefits? How much will I get paid?
· What is the waiting period before I can claim benefits?
· If I go back to work part-time, can I get partial benefits?
Are the benefits taxableDisability Insurance
Disability insurance gives you money if you can’t work because you become disabled.
Individual disability insurance is very important for self-employed people and for people who don’t have a group disability plan at work.
An employer may offer Short Term or Long Term disability coverage (or both) to employees. You may pay your own premiums or your employer may pay premiums for you.
If you have paid into Employment Insurance (EI) or Canada Pension Plan (CPP), you may be able to get disability benefits from EI or CPP.
You may have disability insurance on your mortgage or car loan.
When you make a claim for disability insurance, all of these kinds of insurance work together so that you get benefits up to 60-80% of your income.
Types of Disability Insurance
There are three kinds of individual disability insurance.
Noncancellable policies mean the insurer must renew the policy and the premiums can’t go up.
Guaranteed renewable policy premiums can go up.
Commercial policies let the insurer refuse to renew the policy. The insurer can also change the premiums when you renew.
Dismemberment coverage gives you money if you lose a limb, vision, or hearing.
Critical Illness insurance covers you if you become disabled because of illnesses such as cancer, heart attack, or multiple sclerosis.
Long Term Care coverage helps to pay for care if you become very ill and need to be looked after 24 hours a day.
ไม่มีความคิดเห็น:
แสดงความคิดเห็น