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Disability Insurance Briefly Explained

Disability Insurance Briefly Explained

Life is made up of hardships. No one is safe from unexpected events. What would happen to you if an accident or illness occurred? Would you be able to meet your short- or long-term financial obligations and support yourself and your family members? Custom disability insurance solutions allow you to collect monthly benefits for a certain period. Whether you buy sickness or accident insurance, you will be protected against the unexpected, which offers you peace of mind. Although many people have access to group insurance at work, personal insurance is a good complement if an illness or injury prevents you from working.

Facts are facts

The majority of Canadians understand the importance of life insurance, but others admit to not understanding disability insurance. Insurability is important given the statistics.

According to data from the Canadian Institute of Actuaries (CIA),
one in four Canadians will one day be unable to work for 90 days or more due to illness or injury– all before reaching age 65.

To help you better understand disability insurance, the following topics will be covered in this article:

Income insurance – accident

With this type of insurance, you will receive monthly benefits if you become disabled as a result of an accident related to an external phenomenon, such as a fall on the ice, an accident at work, a fracture, a back strain, mutilation, loss of use, renovation project, walking outside, and others. Accident insurance can be purchased separately from health insurance at a fraction of the cost.

This type of insurance is available to everyone, including people in high-risk occupations, such as truck drivers and construction workers.

According to statistics, less than 15% of policyholders claim for accidents, making the premium less expensive.2

Income insurance - accident & sickness

With this type of insurance, you will be covered in case of an accident and if you are diagnosed with one of the illnesses covered by your policy. Income insurance — sickness provides coverage for certain types of illness. It is important to note that with disability insurance, sickness insurance will always be offered in addition to accident insurance. Note that the insured’s age and health status may affect eligibility and premiums. This type of insurance will be very useful if you are no longer able to work due to illness. According to data from the World Health Organization, the most common disabilities are related to mental disorders, including depression, substance abuse, Alzheimer’s and other types of dementia.

Still have questions about the disability insurance offered by Matcha Insurance? Our financial security advisors are available to answer any questions you may have and to reassure you.

Contact us now by calling 1 844 532-3228 or Book an Appointment.

Things to consider when calculating your disability insurance premium

The calculation is based on several factors, including percentage of income to be covered, your current disability insurance, debt, financial resources and future aspirations.

The premium amounts also vary depending on the insured’s occupation. Insurers consider that risks vary based on job class. Take, for example, a truck driver. He or she will pay a lot more than a business analyst.

Benefits

When you are disabled, you will receive monthly benefits to help you meet your financial obligations. Several factors will affect the amount of benefits, including the calculation of the emergency fund. Explanation: an emergency fund brings together the savings the insured has in his or her bank account, which will be used to pay living expenses for a fixed period. The larger the emergency fund, the longer the waiting period (waiting period to obtain benefits) will be extended. The size of the emergency fund may also affect the premium cost. There are two types of benefit periods: short-term and long-term.

In conclusion, disability insurance is not just about price, but also about short- and long-term protection. It can be called a lifeline if an unexpected event occurs.

Here is a summary of the preceding discussion3:

Features
Disability insurance
Types of disability

Mental health disorders
Cancer
Cardiovascular diseases
Musculoskeletal problems
Injury
Nervous system disorders, digestive disorders, circulatory disorders, any other medical conditions

Maximum benefit period

2 years
5 years
Up to 65 years for a disease
Up to 70 years for an accident

Benefit amount

Benefits that are between 60% and 85% of your regular salary, up to a maximum amount.

Taxable if premiums are paid by a company (INC) or employer.

Waiting period

The period between the onset of the disability and the first payment of the benefit. 0, 1, 15, 30 to 90 days, up to 120 days.

The waiting period may lead to changes in the monthly premium.

1 Canadian Institute of Actuaries (CIA) 86-92 and 2012 Society of Actuaries – Individual Disability Experience Committee Table.

2 World Health Organization – Disease and injury incidence country estimates (November 2013).

On the same subject

How do I file a complaint?

  • In case of dissatisfaction, start by getting in touch with our Director of operations, Mrs Sylvie Chartrand:
    Mrs Sylvie Chartrand
    Director of operations :
    sylvie.chartrand@matchainsurance.ca
    Telephone : 1 844 532-3228
  • If you are not satisfied with her response, you can contact our Complaints officer to make a formal complaint:
    Mr. Jean-Patrice Dozois
    Assistant Vice-President, Legal Affairs & Compliance
    1705-625, Avenue President-Kennedy
    Montreal (Québec) H3A 1K2
    Email: jean-patrice.dozois@humania.ca
    Telephone: 1-800-363-1334 or from Montreal: 514-485-1334, ext. 307
    Fax: 1-844-773-4999

The complaint must be filed in writing. If you need help filing your complaint, you may call Ms. Marie-Kim Larouche, Legal advisor, at 1-800-363-1334 ext. 479.

Any complaint made in writing to our Complaints officer will be recorded in Matcha Insurance’s complaints registry if it includes at least one of the following:

  • A reproach against Matcha Insurance;
  • The identification of real or potential harm that a consumer has sustained or may sustain; or
  • A request for remedial action.

A complaint file is opened for each complaint. The file includes all of the documents required to assess your complaint.