The Merriam-Webster Dictionary defines ‘disability’ as being a physical, mental, cognitive or developmental condition that limits or interferes with a person’s ability to participate in daily tasks or activities. While disabilities can differ in how they affect an individuals quality of life, the proper insurance can help if a disability suddenly stops you from being able to work. Without it, the financial strain from the inability to work, or even costly treatments and equipment, can be devastating. As there are many reasons why someone may not purchase coverage, it’s important to debunk common Disability Insurance myths that are leading individuals to be underinsured.
Taking Disability Insurance Seriously
As Statistics Canada found that in 2011 the employment rate of Canadians aged 25 to 64 with disabilities was 49%, it proves that it’s more common than many expect. This statistic means that nearly half of working Canadians who would be expected to have financial responsibilities such as a mortgage, student loans, or even a family to support, were disabled at some point. While their disability could vary in severity from a broken leg limiting mobility to an accident causing them to lose their vision, it is still worth noting that without the right Disability coverage, nearly half of Canadians could have been at financial risk.
Myth 1: “I don’t need Disability Insurance. That can’t happen to me.”
An accident can happen to anyone at any time. You don’t have to be working at a construction site to be exposed to dangers that could leave you disabled for days or even months. Since many Canadians were faced with some form of a disability in 2011, it is more common than you think, regardless of your age. In fact, it’s been noted that an average 20-year-old person has a 25% chance of facing a disability during their career. Even though the extent of a disability can vary, you need to prepare for the worst, so in the unlikely event that you need extensive coverage, you’ll be prepared.
Myth 2: “My work insurance should cover me. I’m good!”
It should always be stressed that while your employer does provide you with benefits, the insurance coverage may not be enough to match your current needs. In fact, many find that the Disability coverage that their employer provides is insufficient as the payments begin months after the accident occurred, or that it only provides coverage if the accident occurred while working. Additionally, many benefits offered by employers have limitations on how much insurance is paid out to a policyholder. Meaning, once you receive the maximum amount, you may be expected to manage your financial needs on your own, regardless of if your disability is still present. To many, these limitations can be financially devastating as they run the risk of quickly and unexpectedly using all of their savings to cover their expenses. So even if your employer offers coverages, it’s always encouraged to confirm the type of coverage you’re entitled to and how much coverage is provided as you may want to purchase an additional policy.
Myth 3: “Disability Insurance is too expensive!”
Just like with any other insurance, you’re purchasing Disability coverage to protect yourself in the future. And just like any other insurance policy, the amount of coverage you’re buying, will change the cost of the plan. So while some plans may appear to be more expensive than others, it’s well worth it since it will provide you with more protection. As your policy may become your primary source of income if you’re disabled and unable to work, when you’re buying a policy, you’re investing in your financial stability in the future.
Unsure Of Where To Start?
When it comes to insurance, you should never procrastinate. As more than 5.3 million Canadians have some form of disability which affects their quality of life, you never know what the future holds! So be prepared and protect not only yourself, but your family as well by contacting your Cambridge Insurance broker today to find the right coverage. We’ll walk you through every step and provide you with the right information so you can feel confident that the coverage you’re purchasing, fits your unique needs. You may even find that the right policy is more affordable than think!