As the name suggests, this type of insurance coverage is designed for employed people having a fixed monthly income. Many Canadians receive disability insurance coverage from their employers. However, it may not be sufficient to compensate with the level of protection needed to replace your lost income.
Employers generally opt for a group insurance plan for their employees. Though group insurance is a great start to have, they only provide basic coverage. Thus, it is wise to get an exact idea of the disability insurance coverage from your employer, to see how much you have and can plan accordingly on how much individual disability coverage plan you will need based on your day-to-day expenditure.
Having a personal disability insurance policy enhances your group insurance coverage, and both together can work better to safeguard you, your family, and your way of life in the event of a disability.
Commonly known as Business Disability Insurance, it is a disability insurance coverage designed for both small and enterprise business owners, to help keep their business running smoothly in case they are unable to work due to an injury. It acts like a reserve fund to protect a dream they’ve worked so hard to build, without using the actual business reserves.
Basically, a business disability insurance is a policy owned by your company to provide you a monthly remuneration for a time period, while your injury keeps you away from work. There are several coverage plans available to help protect your company while you are unavailable.
- Business Overhead Expense Plan –
This is a non-cancellable overhead expense disability insurance policy that can cover qualified company overhead expenses while you are totally disabled. It supports you with continued monthly payments for 1 to 2 years, or as long as long as your injury lasts.
- Protection for the Key Person –
With this plan, you can provide a source of income for a key employee or your business partner while they are disabled. Also, these funds can help cover debts and expenses to protect the business from lost sales, increased expenses, or high replacement costs when a key employee is totally disabled.
- Buy-Sell Agreement –
A buy/sell insurance agreement provides funding for the acquisition of a shareholder’s or partner’s shares or for an ownership interest from a fully handicapped shareholder or partner.