What you need to know about your Group Long Term Disability
Having a source to replace your earned income in the event of an illness or accident is vital considering that on average, 1 in 3 Canadians will become disabled for a period of more than 90 days at least once before the age of 65. For those that are disabled for more than 90 days the average length of that disability is 2.9 years.
If you are one of the approximately 10 million Canadians covered under a group Long Term Disability plan (LTD) it’s important to understand what your coverage provides. Don’t wait until after you’re disabled to read the employee handbook, because you could have a few surprises!
Most of us probably have life insurance. We also know we need to insure against the risk of critical illness and loss of income. For some of us, it’s a tough choice to choose the one we buy and the one we do without when dealing with a limited budget.
Manulife has an innovative product that may be the answer for you.
If you had a crippling accident or were diagnosed with a critical illness tomorrow, would your family be able to cope?
by Julie Cazzin, for Money Sense
Ten years ago, Janet Freedman was rushing out the door of her home for work. Her arms loaded with tax returns, she missed a step on the stairs on her front porch and fell, hitting her head on the concrete. When her neighbours found her, she was barely conscious, with her head trapped between her own front steps and those of the house next door.
Paralyzed, with a partially severed spinal cord, it took more than six months of hospitalization and two years of intensive physiotherapy for Freedman to resume her life. She was unable to work and had no one to support her. “Thank goodness I had a good private disability insurance plan,” says Freedman, a certified financial planner and author of Hit by an Iceberg: Coping with Disability in Mid-Career. “Those payments allowed me to concentrate on my rehabilitation and to live my life without worrying about where the money was coming from for daily living expenses. That made a big difference to me and my recovery.”
As this year’s graduates cross the stage they’re filled with dreams of their bright futures. Rightly so – they’ve worked hard to get to where they are. They’re thinking of their careers, their earning potential and getting started on this business of life.
Now’s also the right time to think about protecting that income earning potential against injury or illness. This is an excellent time for young professionals to consider disability insurance; here are just some of the reasons why:
- Rates are low because they’re young and healthy
- These rates are guaranteed for the duration of the plan on superior plans
- Some carriers offer discounted rates to new grads.
- Financial underwriting is a little more flexible since they don’t have a history of earnings.
- Options are available to increase benefit amounts as their earnings increase.
For a graduate, starting out on a brilliant career, this is just another step in the process of establishing that bright future. If you consider their earning potential, doesn’t it make sense to insure it at the best rate possible?