Disability insurance is not especially well-known and sometimes disregarded, yet it is crucial if you become disabled and are unable to work. You may get disability income insurance, often known as disability insurance, to provide a regular income in the event that you become ill or injured and are unable to work. Your ability to fulfill your financial commitments for a specific amount of time is safeguarded by Disability Insurance in Calgary.
MYTH 1: Only Other Individuals Are Affected By Disability
Disability is not limited to physical harm because 75% of instances involve disease. You still run the danger of getting hurt even if you work in an office rather than a construction site. Disability is also frequently caused by mental illnesses like sadness and anxiety. Chronic conditions include cancer, diabetes, heart disease, and high blood pressure render workers temporarily or permanently unfit for employment. And nobody is immune from contracting such a disease. One in three Canadian employees between the ages of 30 and 64 will become disabled at some point in their professional lives.
MYTH 2: The Cost Of Disability Insurance Is High
Numerous variables, including your age, gender, smoking status, employment, and monthly benefit amount, affect the cost of disability insurance. Depending on these variables, it can cost you 3-5% of your salary. But that could seem like a lot when you consider the value you get. Think about a 35-year-old who is self-employed and makes $120,000. Until the age of 65, he may earn more than $6,000,000 (again, assuming a 3% yearly rise in his salary). All of a sudden, paying a few hundred dollars a month in insurance premiums to safeguard his capacity to generate revenue seems like a no-brainer.
MYTH 3: The Reserve Fund I Have Will Help
Of course, you save money for emergencies as any good employee would, especially if you work for yourself. But did you know that a contingency reserve has to equal three months’ worth of income? Despite the fact that this amounts to sizable savings, it could not be sufficient in the event of long-term incapacity. Purchasing individual disability insurance is preferable. You will be able to pay your financial responsibilities and get sizeable fixed benefits that are often tax-free in this situation.
MYTH 4: Depressive Disorders And Other Mental Health Illnesses Are Not Covered By Disability Insurance
Disability income insurance will pay for these sources of impairments unless you already have a mental health condition. However, if you already have it when you get disability insurance, your policy will have a mental health exclusion. For this reason, it is even more important to purchase coverage when you are still young and healthy.
Consult A Financial Advisor
You’re still undecided about disability insurance. Ask your financial counselor for advice. In order to provide you peace of mind, he or she will present you with several solutions based on your circumstances. So, for Disability Insurance in Calgary, contact Mr. Rajdeep Dhaliwal.