The most important question one must ask is, “..what would it mean to
me and my family if my Pay Check was to stop tomorrow knowing I may not work ever again?..”
Living Benefit Policy- A Living Benefit Policy is a policy that pays benefits to the insured while the person lives.
An income Replacement Policy pays you (the named insured) an ongoing income (term of policy) TAX FREE, if you become incapable to pursue employment or business activities. Benefits are pre-determine, calculated on the amount of benefits requested (66% of income), elimination period, length of contract, health, occupation, pre-existing medical conditions, smoker/non-smoker.
In its purest form, a Disability Policy provides protection against the loss of a paycheck as a result of a disability by paying monthly benefits (Tax Free) while you are unable to work.
FACT: The Canadian ratio in home closures is one (1) as a result of death, while it is eight(8) As a result of disability.
- There are four major Living Benefit Policies
- Individual Income Replacement Policy ( Disability Policy)
- Employee Benefit Plan (Group Plan)
- Critical Illness Policy
- Long term Care Policy
Worker’s Compensation only covers for Injury on the job site. Un-Employed Insurance is only for a period of 120 days.
***There are certain disability policies that cover Illness only, while others may only cover Accidents.