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The Cost of Not Having Disability Insurance

Written by Nerissa

Disability insurance in Alberta costs money, but have you thought about what not having disability insurance costs? Not having the insurance you need when you need it takes more than a financial toll.

No disability insurance? No peace of mind.

If you woke up every day knowing you were just one accident away from financial ruin, how would you feel? It would wear away at you, causing you a good measure of mental stress. This is the sad reality for many Albertans. With high consumer debt, not enough in retirement savings, let alone an emergency fund, the thought of paying for disability insurance seems unlikely.

But…

Disability insurance replaces a portion of your income in the event of an accident or incident that takes you out of the work force. If you have to decide between some money coming in and zero dollars coming in if you are off work due to a disability, your priorities become clearer!

Don’t just assume you cannot afford disability insurance in Alberta. For many, the premium is a more efficient option than trying to cover months of expenses with no income coming in. Knowing the money is there when you need it the most helps you sleep better at night.

No disability insurance can mean no income.

How long can you go without an income? If your mortgage payments will lapse, you have to resort to Kraft dinner (and no disrespect to those cheesy noodles….) and you’ll get to work with little more than prayers in your gas tank after four – six weeks of no income due to a disabling accident or incident, you should have disability insurance.

How to get disability insurance in Alberta

Are you employed and have group benefits? Take a good look at your benefit information. You may already have disability insurance in Alberta. Be sure to note how much of your income is covered, what your policy considers a disability, etc. If you need a top up of disability coverage, that may be possible, but remember, there is an all source maximum on disability insurance. You can’t layer policies and receive more than about 75%-85% of your income in payments. The percentage is dependent on your income stream and job classification.

If you don’t have disability insurance at all, it’s time to speak with a broker.

Why call a broker for disability insurance in Alberta?

A broker is different from an agent or a bank representative. Agents and bank representatives can only show you the policies sold by their institution. A broker is more like a freelancer. They have access to every single disability insurance product in Alberta, and they use this “power” to find the best policy for you.

In addition to your health, your class of work, ability to work under certain circumstances, and more come into play with your disability insurance application, so it’s important to have options so you can choose the policy that will best suit your needs.

A broker can also look at your existing coverage to make sure you are not over or underinsured. If you and your spouse have disability coverage through work, for example, this needs to be taken into consideration. If you are leaving your place of work and will be uninsured while you go through the probationary period at a new job, that must also be considered. There are many different factors that a broker will assess to ensure you have the disability, and other coverage components, that make the most sense for you.

Call Nerissa to Learn More

Whether you have questions about disability insurance in Alberta, need a review of your existing coverage or would like to purchase a policy, I’m here to help. Contact me today to learn more, and like my Facebook page to stay in the know about life and health insurance in Alberta.

About Reassured

We work with individuals across Alberta to secure the best life insurance rates.

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