Long term disability Insurance provides a means of replacing your income should you become totally and completely disabled. In the event of disability, the insurer will provide you with a replacement paycheque for the duration of your disability or for the length of your benefits.

There are a few common features with disability that you should ensure your plan has:

• Duration of benefits (or benefit period): Many policies (particularly those offered by employers) provide benefits for a maximum of 2 years. If you are totally disabled, what are you going to do for income after those two years? Other common durations are 5 years and to age 65. We recommend you select a benefit period of to age 65. If your employer provides coverage for only two years, we can provide a quote that will wrap around your existing coverage, starting benefits after two years (when your work benefits would cease) and continuing to age 65.

Cost of living benefit (Indexing): Should you be disabled for many years it becomes vital that your benefits are indexed to inflation. Over a short period of time, small inflationary increases in your benefits will not have much impact. Over longer periods of time though, inflation can severely decrease the purchasing power of your benefits. Adding a cost of living benefit rider will increase your benefits over time in an attempt to keep pace with inflation.

• Own Occupation: After two years of benefits many policies will require you to go back to work doing anything for which you’re capable of doing. Most consumers want protection that says they will receive benefits as long as they’re disabled from their own (current) occupation. This rider removes the 2 year clause and ensures benefits will continue as long as you’re disabled from your own occupation.

Most policies will provide a maximum benefit of 2/3’s of your pre-disability income – if you’re income is $50,000 then the maximum benefit would be $33,333. However the $33,333 of disability income is typically not taxable income, whereas the $50,000 of income would be taxable. This helps offset the 2/3rds maximum inherint in most disability insurance policies.

Can we provide you a quote for disability insurance? Please complete the following form and we’ll contact you promptly with a personalized quote.

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Your Occupation and brief description of your duties