DISABILITY INSURANCE

Most people recognize the need for life insurance, but many don't understand the need for disability insurance.  When you are disabled because of an injury, your income stops - but your bills don't.  An average of 1 in 3 people will be disabled for 90 days or more at least once before they reach age 65 and can last for months or even years.

Types of Disability Insurance

Individual Plans

An individual plans can give you the most comprehensive and flexible coverage available because it can be tailored to your needs.  

There are three types of individual disibility plans:

1.   Noncancellable

     A non-cancellable plan cannot be cancelled and the price cannot be increased during the period of time set out in the contract.        This can also be called non-cancellable guaranteed renewable.

2.  Guaranteed renewable

     This insurance company must renew the policy bit it can raise the premiums for everyone in a certain class r category.  The              cannot raise individual premiums.

3.  Commercial

     On the anniversary of the contract, the insurance company can refuse to renew the policy, or the can charge more because of          any previous claims you have had.

Group Insurance Plans

A group plan through a place of employment provides different levels of coverage.

1.   Sick leave

     If you are sick or injured, you will receive full pay for a short period of time.

2.  Short term disability (STD)

     This coverage begins when your sick leave runs out.  Most STD plans pay a percentage of normal earnings for a certain length of      time.

3.  Long term disability (LTD)

     This coverage begins when your short term disability or EI benefits run out.  The goal is to replace 60 - 70 percent of your                normal income to a maximum.  

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