As a Canadian worker, you’ve likely heard a thing or two about disability insurance. This type of insurance is pertinent since you never know when you’re going to get injured or sick. Nevertheless, this isn’t the only option you have. If you want to shield yourself from substantial losses, you’ll want to think about purchasing disability or wage loss insurance. While these two insurance products are similar, they’re not identical. With that being said, you need to take the time to fully understand both of them. Within this guide, you’ll find out more about both.
You’ll find that wage loss insurance and short-term disability insurance are two insurance options. If you’re worried that you’re going to get injured on the job, you’ll want to buy one of these policies. Before you can do that, you need to learn more about the benefits of both. They’re similar but different. How can you be positive that you’ve found the right one for you?
Understanding Wage Loss Insurance
Wage Loss Insurance was known as workers’ compensation. It is a form of insurance that helps the worker supplement income they’ve lost. Furthermore, it can help the Canadian worker cover his or her medical benefits. The big thing to remember is that wage loss insurance is best for people who’ve been injured on the job. Before you can use this insurance, you have to agree to the rules set forth by your company. Furthermore, you will have to give up your right to sue your company for negligence. Giving up your rights in exchange for insurance is known as the compensation bargain.
Furthermore, wage loss insurance is a no fault system. This means that nobody is going to be blamed for the accident. The benefits will be provided regardless of who was responsible. The rules of wage loss insurance tend to vary from one location to another. Nevertheless, this insurance is going to provide the worker with weekly payments while they’re out of work. Furthermore, they may receive monetary reimbursements for past loss of wages as well as past medical expenses.
If someone is killed at work, wage loss insurance benefits will go to their loved ones.
Benefits Of Wage Loss Insurance
With wage loss insurance, you will receive benefits when injured on the job. The following requirements must be met.
- The injury may be physiological or physical
- It may be caused by your medical condition worsening because of your career
- A worker injury could lead to another injury at home or elsewhere
- You experience an accident at work
- You’ve been exposed to something at work and it has made you sick
Who Needs WSIB Insurance?
Who needs wage loss insurance? Ultimately, a lot of people fit into this category. If you’re worried about getting hurt at work, you should make sure that your boss gives you wage loss insurance. If you work a dangerous job, you should get this insurance before it is too late.
Filing A Claim For Wage Loss Insurance
Before you can obtain wage loss insurance benefits, you’ll need to file a claim. You’ll need to fill out and submit a claim form. Furthermore, your employer will need to give you sufficient benefits. The employer will need to arrange for you to undergo a medical assessment.
Understanding Disability Insurance
While wage loss insurance and disability insurance are similar, they’re not identical. With that being said, you need to find out which one is going to work best for you. Disability insurance will provide you with benefits if you’re injured or sick and can no longer perform your daily work functions. The big difference here is that you’ll have to get hurt outside of the workplace before you can take advantage of disability insurance.
Disability insurance is an umbrella insurance policy meaning it will cover paid sick leave, short term, and long-term disability. It will pay benefits in certain situations.
When Benefits Are Paid
Benefits are paid for disability insurance when you’ve been injured or become very sick outside of the workplace.
- The injury may be psychological or physical
- These benefits can extend to your loved ones too
- It will normally cover up to 60% of your wages
Who Needs Disability Insurance?
You may experience a sickness at any point. Furthermore, you never know when you’re going to get hurt outside of work. Anything can happen and you’ll want to be prepared for these problems. With that being said, you should obtain disability insurance. Most Canadian consumers can find several reasons to purchase this insurance.
Filing A Disability Insurance Claim
Before you can obtain disability insurance benefits, your employer will need to make a claim. They will be responsible for making the first claim. Then, the insurance company will take over. They’ll make sure that you are injured and they’ll pay the benefits.
Differences Between Wage Loss And Disability Insurance
While these two insurance products are similar, there are many differences. The biggest difference is the types of situations that they cover. If you experience an injury at work, you will need to deal with wage loss benefits. If you get hurt somewhere else, you’ll want to take advantage of disability insurance. Employers purchase wage loss insurance to pay for accidents that happen at the workplace. This insurance will cover all medical bills as well as lost wages.
Disability insurance is less comprehensive. It covers a smaller portion of the insured person’s wages. If you’re dealing with a sponsored group plan, the employer will likely pay the premium.
How They’re Similar
Disability insurance and wage loss insurance are similar. For instance, these insurance policies are going to provide you with money when you’re sick or injured. Furthermore, you should know that the laws governing these insurance products tend to vary from one location to another. Both policies may have exclusions for intentional injuries or self-inflicted injuries. With either, you’ll likely receive benefits until you can return to work.
Both Have Limits
It is important to know that both insurance policies have limits. Unfortunately, you may not receive your full salary. Furthermore, workers may be required to pay more premiums if they’re dealing with a long-term injury or illness. Despite these limitations, you’ll find that wage loss insurance and disability insurance are very important. They offer extensive protection when you’re injured and sick. Since you never know when that is going to happen, you should get covered as soon as possible.
This will help you avoid being caught without insurance and getting yourself into financial trouble.
Which Should You Have?
So, which form of insurance should you have? Before you can find out, you’ll need to analyze your current situation. How risky is your job? Do you work a dangerous job that requires you to put your body on the line? Are you worried that you’re going to get sick at home? These thoughts are frightening but you can protect yourself by acquiring sufficient insurance. Ultimately, you’ll want comprehensive protection when at work and at home. With that being said, you should have a combination of both.
Wage loss benefits are going to protect you from injuries that happen at work. Without disability insurance, you will not be protected from problems that happen elsewhere. With this in mind, you should understand that it is wise to have both policies. This is the best way to ensure that you’re going to be protected at work and at home.
What Are The Costs?
The costs of both insurance policies can vary significantly. However, you should know that it is going to depend on numerous factors. For instance, the insurer is going to look at your occupation. They’ll want to know how risky your job is before moving forward. If you work in the coal mines, your job is very dangerous so you’ll be required to pay more. If you work behind a computer screen, your job may be less risky so you’ll pay less. Furthermore, the insurer is going to consider your location, age, and current health. This ensures that you are paying exactly what you should.
The good news is that most Canadian employers are going to help you obtain both insurance policies. If you want protection, you should speak to your employer. There is a good chance that they offer one or both of these products. If they do, they’ll pay a portion of the premiums.
Disability Has 2 Types
Finally, you should know that disability insurance has two types. You can have short-term and long-term disability. Since you never know how long you’re going to be injured, you’ll want both policies. If your recovery takes longer than expected, you’ll be able to switch from short-term to long-term disability. This ensures that you’re covered for longer. You’ll want to get both coverage options so you can sleep easy at night.
In most cases, short-term disability insurance will protect you for a few months. Long-term disability insurance can provide you with benefits for a year or longer. Disability insurance and wage loss insurance will help until you can return to work.
Types of Disability Insurance we offer
- Long-Term Disability Insurance (LTD)
- Short-Term Disability Insurance
- Key Person Disability Insurance
- Self Employed Disability Insurance
- Mortgage Disability Insurance
- Temporary Disability Insurance
- Supplemental Disability Insurance
Other Disability Insurance Resources that you can read
- Are Canadian Disability Insurance Premiums Tax-Deductible?
- Will My Long-Term Disability Income Be Taxable?
- Dealing With Elimination Periods For Short And Long-Term Disability Insurance
- Pregnancy And Disability Insurance
- Who Pays For Disability Insurance?
- Why Employers Offer Disability Insurance
- Maternity Leave And Disability Insurance Benefits
- How Long Do Long-Term Disability Benefits Pay?
- How Much Does Long-Term Disability Insurance Cost?
- Is Disability Insurance Worth It?
- How Much Disability Insurance Should I Get?
- What Does Disability Insurance Cover?
- What To Look For In Disability Insurance?
- Do I Need Disability Insurance After I Retire?
- Does Disability Insurance Cover Pre-Existing Conditions?
- How Does Disability Insurance Work?
- How Long Does Long Term Disability Insurance Pay?
- Is Wage Loss Insurance The Same As Short Term Disability?
- When Does Long Term Disability Insurance Start?
- Can You Buy Your Own Short Term Disability Insurance?
- Can You Get Disability Insurance If You Are Unemployed?
- Can I Buy My Own Short-Term Disability Insurance?
- Can You Get Individual Short Term Disability Insurance?
- Are Credit Cardholders Insured By Disability Insurance Plans?