As a working professional or business owner you are a prime target for insurance companies selling the latest and greatest “peace of mind” product. It’s important to look past the “feel good” sales tactics and understand what you are really buying. If you are looking to purchase a disability insurance policy, you are looking to transfer risk and should have a clear definition of loss. Simply put, you are insuring yourself and your ability to earn a livable wage.
Disability insurance transfers the risk of an accident or illness interrupting your ability to complete the core functions of your job. Not to be confused with Critical Illness insurance which pays a benefit when you are diagnosed with a serious, life-altering illness such as cancer.
Here are some of the top disability insurance myths to watch out for:
Myth #1: The odds are in your favour:
Many people believe the odds of having a career-threatening injury or illness are extremely low. The odds of a 20 year-old person becoming disabled at some point in their career are one in four. That’s a 25% chance your income earning ability will be interrupted at some point in your working career.
Myth #2: My job/business will cover me
Many Canadians believe that WCB will cover them if they become injured. While that is true if you are injured on the job, but studies show almost 90% of disability claims happen from events outside of work. After all, are you more likely to get injured at work, which we assume has many safety procedures in place, or snowboarding in your off time? Also it can be incredibly difficult to collect workers compensation benefits, and it certainly does not begin paying you immediately.
Myth #3: Most disabilities are caused by one-time catastrophic accidents
While it is true some disabilities can be caused by a car accident or some other freak accident, one-time accidents only represent 10% of disability claims. The vast majority of claims are triggered by chronic conditions, such as: back problems, joint pain and other common disorders.
Short and long term disability insurance is important for all Canadians, whether you are employed, self-employed or own a business. Especially for business owners, offering disability insurance is an important part of any corporate benefits package. Please refer to our Competitive Corporate Benefits Package article for more information on that subject.
For more information on Disability Insurance benefits and income protection for your business or family, please contact DENT Benefits today!
The information in this material is derived from various sources. Material is provided for general information and is subject to change without notice. Every effort has been made to compile this material from reliable sources; however, no warranty can be made as to its accuracy or completeness. Before acting on any of the above, please contact us for benefit, pension and insurance advice based on your corporate or personal circumstances.