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.
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.