Disability Insurance Burnaby and Vancouver
Most people will insure their valuable assets such as their car or their house. The idea is that, should the car be totaled or the house burns down, then the resulting loss is too great for the individual to recover from. By contributing a small percentage of the value of the item on an ongoing basis, in the form of insurance, you can reduce the risk of such catastrophic financial losses.
Sometimes given less thought is your most valuable asset of all and that is your ability to work and earn an income. To be able to work to generate an income is often taken for granted and, in the typical working years of 40-50 years, the amount of earnings lost due to a disability can add up to millions of dollars.
Disability Insurance in Vancouver
Fortunately, there is protection available on the market and that is Disability Insurance. A Disability Insurance policy effectively insures your earned income so that if you can’t work, the policy will pay you a tax free income to replace your lost wages.
Different Types of Disability Insurance
There are many parameters to consider when looking at Disability Insurance. As there are many variations of Disability Insurance on the market, it is important to choose the correct product and parameters to suit your needs. Here are some important parameters that you will need to consider:
- Waiting Period: This is the time you need to wait, after claim, before the policy will start paying a monthly income. For Long Term Disability Insurance policies, this is typically 90 days.
- Benefit Period: A benefit period on a Disability Insurance policy is the duration of which the income will be paid to you while on claim. Typical benefit periods are 2 years, 5 years, to Age 65, or to Age 70.
- Regular Occupation Extender: This rider will extend the definition of disability to be your Regular Occupation from 2 years to Age 65 or 70. Depending on the policy, the definition of disability is based on “Any Occupation” after 2 years.
- Own Occupation Rider: This rider will allow you to work and earn an income while still being paid a disability benefit due to a disability claim from your regular occupation
- Lifetime Benefit Rider: Most Disability Insurance policies will stop paying benefits after Age 65 or 70. The Lifetime Benefit rider will extend this payment, on a graded basis, for your entire lifetime.
- Non-Cancellable Type of Disability Insurance: This is the best type of Disability Insurance that you can buy as the Insurer cannot cancel your policy after it takes effect, even if you change to a more risky occupation.
- Future Insurability Option: This rider will allow you to increase your benefit amount over time without any medical evidence.
- Cost of Living Adjustment Rider: The COLA rider will automatically index your benefit amount to inflation while on claim so that you have the same amount of buying power over time.
As you can see, Disability Insurance products are varied and is highly customizable to your needs. For this reason it is important that you carefully choose the correct product and features for you. For Disability Insurance in Burnaby, Vancouver, or anywhere in BC, Alberta, or Ontario, contact your Venture First Advisory Disability Specialist for more information.
Contact Us – Vancouver & Burnaby Disability Insurance Advisors
Every type of disability insurance policy can be a great choice – it simply depends on finding that one that meets your needs effectively. At Venture First Advisory, we always make sure to find the right policy from the right provider that suits exactly what you’re looking for. Book an appointment with Venture First Advisory today to speak to one of our experienced advisors and get the coverage that you need from people that you can trust.