What is Disability Insurance?

Disability income can help protect your most valuable asset, your ability to earn a living. When you can't work, it can help you and your family:
Disability income insurance provides a monthly benefit for loss of income because of covered injuries or illnesses. After a predetermined time period, it typically pays a percentage of your income for as long as you're disabled, under your contract.

Why Should I have Disability Insurance?

Disability premiums are based on your age, sex, occupation and the amount of potential lost income you are trying to protect. In general, the lower the chance that your occupation puts you in harm’s way, the lower the premium. The higher your chance of injury, the bigger the premium will be. So, for instance, an accountant working in an office would have much lower disability premiums than a construction worker. Base your own need, and make sure that your own and your families future’s are looked after.

What are some of the benefits of having Disability Insurance?

Disability Insurance can:

1. Keep a roof over your head
2. Maintain your daily routines
3. Rest easy knowing the bills will get paid
4. Fewer employers offer disability insurance than life insurance, and it's much harder to qualify for individual disability coverage than for individual life insurance.

What are some of the Statistics associated with Disability Insurance?

At any given age, the odds of becoming disabled are much higher than the odds of dying. Every year, 12% of the adult Canadian population suffers a long-term disability. One out of every seven workers will suffer a five-year or longer period of disability before age 65, and if you're 35 now, your chances of experiencing a three-month or longer disabilities before you reach age 65 are 50%, according to the National Association of Insurance Commissioners (NAIC). If you're 45, the figure is 44%. These odds would not be a problem if people had substantial savings that could be drawn on in the event of a disability. But that's rarely the case, and any money that has been set aside has likely been earmarked for goals such as college or retirement. In a 2007 NAIC survey, 56% of adults said they would be unable to meet their expenses if they couldn't work for a year.
^{*Source: MSN Money}