Disability insurance is income protection that most individuals believe they will never need. In truth, one in every four Canadian 20-year-olds will be disabled before retirement. When an unforeseen ailment or sickness, such as cancer, hits, a worker and his family are put at risk if they do not have disability insurance.
This is one of the reasons that a few states have made disability insurance in Calgary mandatory. Even in New York, if you employ full-time or part-time workers, you must have statutory disability insurance.
There are several misconceptions concerning required disability coverage. Let’s look at the top four:
- Worker’s Compensation Fully Replaces The Income Of The Employee In All Such Events
A lot of people do believe that their loss of income will be covered by employee compensation, no matter how employees become disabled.
Actual Fact: Workers’ compensation insurance only offers partial salary replacement to employees who are injured on the job. 95% of workplace accidents and illnesses are not job-related.
- Getting Workers’ Compensation & Disability Insurance Together Is Nearly Impossible
Many also believe that it is not possible for employers to purchase workers’ compensation and disability insurance at the same time.
Actual Fact: Combining workers’ compensation with disability insurance allows agents to provide consumers with the convenience of 24-hour coverage: workers’ compensation for on-the-job injuries and disability coverage for off-the-job accidents, illnesses, and pregnancy. In reality, when a single carrier offers both policies, claim timelines for disputed workers’ comp claims are reduced, and pay-outs are made more quickly.
- Most Employees Can Survive On Their Mandated Disability Insurance
A vast majority employers do believe that their employees can survive well on just mandated disability insurance.
Actual Fact: Under the Disability Benefits Law, Canadian employers are obligated to provide full-time and part-time employees with statutory disability benefits, although that coverage only replaces a percentage of income up to $170 per week in compensation. Few of us could live on it alone. That is why it is critical to consider enhancing coverage with additional wage replacement benefits.
- Employers Can Legally Purchase Any Group Short-Term Disability Plan
Many major firms misinterpret the Canadian Disability Benefits Law’s compliance requirements and attempt to cover all employees across the country with a normal insured group short-term disability (STD) plan.
Actual Fact: Group STD plans frequently fail to fulfill state regulations, and the firm is deemed to be non-compliant. It is advantageous to purchase from a carrier that provides DBL coverage that is compliant.
Bottom Line:
As the old adage goes, if you look after your people, they will look after you. That is beneficial for business. Looking for a decent disability insurance in Calgary for yourself? Contact the ultimate insurance expert Rajdeep Dhaliwal who would guide you through the entire process of future and financial planning.