DISABILITY Insurance

Disability insurance is a good choice for business owners and self-employed people who are the main income earners for their household. It’s also a good choice for those who have some coverage through an employer or association plan. Individually owned disability insurance offers more flexibility regarding when and how you receive the benefit and can insure that you are adequately protected.

For most of us, our ability to earn an income is our most valuable financial resource. A long-term disability can have a devastating effect on your financial situation.

A key question to ask yourself is: “How long can you go without a paycheck?”

Illness, injuries and disabilities can strike anyone at anytime. The average group long-term disability claim lasts 2.6 years. In Canada, 1 in 6 workers will be disabled for 90 days or more before the age of 50.

At Ottawa Asset Management, we help you to assess your needs and help you to decide which type(s) of insurance coverage is best for you.

Insurance rates vary from carrier to carrier. As an insurance broker, we work with all the major Canadian providers of Life Insurance to find you the best rates for your policy.

Call us today, or book an appointment online, for a free quote or consultation.

What is Disability Insurance?

Disability Insurance pays a monthly benefit if you are unable to work. The definition of being unable to work may be based on whether you are able to perform your own occupation or any occupation. The plan may begin with the “own occupation” definition and move to the “any occupation” definition once the insured person has been disabled for a period of time (often 2 years). The coverage ends when you return to work, or after a set number of years, or a certain age, usually 65.

You can purchase insurance for up to 70% of your income. The benefit paid is non-taxed if you have a personal policy. If your coverage is through a corporate plan, the benefit is taxed as normal income. This is an important consideration, as 70% of your income non-taxed would come close to 100% of your taxable income.

Return of premium riders give a nice cost savings by returning a percentage (typically 50%) of premiums every 5 – 10 years if no claim has been made. It is also possible to combine health insurances (disability, critical illness and long-term care) to save on premiums.

Our Insurance Partners:
Canada Life | BMO | Equitable Life | Ivari | RBC | SSQ | Empire | Life Sun Life | Manulife | Desjardins | Great West Life

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Roger Crandlemire, CFP | Contact us