Most people know what disability insurance is. Most people know is it something that they need, especially if they are constantly in high-risk situations or they have a history of disease and illness in the family. However, this doesn’t mean that you know everything there is to know about the coverage. Knowing that you need it is enough to get you on the right path, but if you actually have to use it, more questions and concerns will likely come up. And, since these questions and concerns will not only impact you but the livelihood of your family and the ones you care about, you should be well prepared for them ahead of time. One of these important questions is knowing who pays for your coverage.
What Exactly Is Disability Insurance?
Most people already know that short-term disability is a type of insurance coverage that will provide you some compensation or income replacement for a non-job-related injury or illness. Any injury or illness thing might render you unable to perform your regular day-to-day duties for your employer. Just keep in mind this is coverage for non-job-related injuries. If you are injured on the job, it’ll likely be something that’ll be covered under your employer’s insurance known as workers’ compensation.
There is also a type of coverage known as long-term disability. This is pretty much the same type of insurance, but the only difference is that it covers individuals for long-term injuries. Long-term disability insurance does not provide insurance for work-related accidents or injuries that are covered by workers’ compensation insurance. However, it does cover an employee in the event of a personal accident such as a car accident or fall. Long-term insurance can still be an important proponent of any care plan, as it will ensure that an employee will still receive a percentage of their income if they cannot work due to sickness or a disabling injury.
If You Are Employed
If you are currently employed in the country of Canada, your employer will be required to pay what is known as workers’ compensation insurance. This is a type of insurance that is similar to that of long-term insurance, as it will cover you for on-the-job injuries. However, they might offer it to you as an option where you part of or all of the premiums. Unlike health insurance, there are no employee payroll deductions or workers’ compensation.
If you are self-employed long-term insurance or workers’ compensation insurance will be more important than ever. Heck, it is important when you are employed, but it is even more important when you are the sole provider. Unfortunately, in these situations, you will be required to provide your own long-term or short-term insurance. If you have employees, you will also be required to pay this for them as well.
Who Pays Out For Disability?
When you injured, you will likely start receiving a percentage of your normal paycheck either 6 to 9 months after the injury. If you are an employer with an injured employee, this will be about the same time frame, but who actually pays for the disability? It will be the insurance company that pays for the disability. You will likely be paying an insurance provider for disability coverage each month. In turn, they will pay for the coverage when you are injured or unable 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?