Is extra health and disability insurance a good idea?

If you were diagnosed with a critical illness or could no longer work, how would your family cope? Health and disability insurance might just be the answer.

Accidents strike without warning. In a split second, your life and livelihood can change completely. That’s why individuals and families across Canada should take the time to review health and disability insurance coverage and find the perfect plan for themselves and their family.

Is extra health and disability insurance a good idea?

Why extra health insurance is important

Many people feel comfortable with the healthcare system and the plans their employers provide. However, these insurance policies are often one-size-fits-all solutions to individual medical situations. If you lost your job or move from one province to another, you could lose valuable coverage and find yourself paying out of pocket for the medical care your family needs.

Additionally, not every province offers supplemental health care like dental care and drug coverage. Even routine dental care and prescription payments can take a toll on your budget. Take a moment to review your individual health insurance and ask yourself what could happen if you or a member of your family needed routine medical support not provided by your province or employer.

How it can safeguard your future

Disability insurance is one of the most prudent forms of insurance you can buy. Studies show that Canadians over the age of 35 have a 50 per cent chance of suffering a disability that lasts 90 days or longer. Worker’s Compensation plans only cover accidents that occur at the workplace and benefits from national programs can be limited.

There are two main types of disability insurance options:

  • long-term disability
  • critical illness

Under both plans, you and your family will receive money should the insured suffer an accident that prevents them from returning to work or requires them to receive supportive care.

Is long-term disability insurance right for you?

Long-term disability insurance guarantees a monthly income if you cannot work, something that can make a world of difference following an accident or injury. Many employers offer some amount of long-term disability coverage, but these plans may offer insufficient coverage.

Many financial experts recommend that if your company’s disability plan covers less than 60 per cent of your pay, you may need additional disability insurance. Also, consider the benefit caps. Most company plans pay 60 per cent of your income or $2,500, whichever amount is smaller. If you’re earning more than $50,000 annually, that may not be enough for you and your family to survive.

Consider critical illness coverage

Critical illness plans provide a tax-free lump sum payment if you’re diagnosed with one of the plan’s covered ailments. You and your family can use this money however you see fit to treat your illness or support your recovery. It’s important to remember that this payment does not affect other compensation and benefits from disability insurance.

You should carefully review critical illness insurance plans. Often, the plans contain many exemptions and disclaimers that can reduce the benefits you may receive.

Protect yourself and your family from financial ruin

Speak to a qualified insurance professional in your area for more information on supplemental health insurance policies and disability insurance plans. Together, you can find a plan that offers you and your family peace of mind and the resources you require.

The material on this website is provided for entertainment, informational and educational purposes only and should never act as a substitute to the advice of an applicable professional. Use of this website is subject to our terms of use and privacy policy.
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