Before they turn 65, one in three Canadians will endure a disability that lasts more than 90 days. That’s a minimum of three months off work. Can you and your family survive the interruption in income? What if the disability is so severe, you recover but cannot go back to your original job? That is where disability insurance in Alberta comes in.
Disability insurance in Alberta provides you with income replacement should you develop a short or long-term disability named in your policy. Disabilities include but are not limited to:
- Recovering from a terrible car accident
- Unable to work for a few months due to a heart attack or stroke
- Being diagnosed with a severe mental disorder that interrupts your ability to work
- Breaking a leg on vacation and being unable to work until it heals
There are some very important things you need to know about how disability insurance works in Alberta.
You cannot stack policies
Don’t take out several disability policies and expect to enjoy a robust “income” by making a claim on all of them! Alberta disability insurance is capped at an all source maximum, meaning you get a percentage of your pre-disability income from all combined sources. As your broker, I take this into account and look at existing disability policies, such as a policy through your work benefits, to ensure you are not over insured and paying for coverage you cannot use.
There is a waiting period
Most disability insurance policies in Alberta have a 90-day waiting period. That means, once your claim is successfully approved, you must wait three months before payments start.
Government disability support is for prolonged and severe cases only
The Alberta government provides some disability support, but it is for very severe and prolonged cases. For routine disability claims, you need individual or group insurance.
Disability insurance in Alberta is important for anyone that risks income interruption due to an unexpected illness or accident. Disability insurance can be purchased as a standalone policy or as a rider.
Let’s talk about it. I’ll ask you some questions about your job, hobbies, commute and lifestyle, and we’ll take a look at any existing coverage you already have. In the end, you’ll be reassured that in the event of a disability, you and your loved ones will have financial protection.