Who would pay the bills if you were laid up? Your family may be well protected by insurance on your life, but would they be
exposed to financial hardship if you were unable to work?
It's a risk you shouldn't ignore. There are 3.3 million disabled Canadians; just a few are children. Almost 1.8 million of the disabled
are between the ages of 14 and 64. For most, the disability interferes with the kind and amount of work they're able to do. You may
find it hard to believe that you could be felled by an illness or an accident, but a third of all people now aged 35 will be unable to
work for at least six months before reaching age 65. The chances that you'll suffer a disability rather than die before retirement are
close to three to one.
Getting a handle on disability insurance can be frustrating. In terms of life insurance, if you die, you collect, and if you don't, you
don't. But what constitutes a disability? It's complicated by definitions, exclusions, occupational classifications, and a raft of
options.
When you're looking for disability protection, you have to know what the policy means by the term "disability." There are three common definitions of disability:
"Own
occupation" or "regular occupation": Disability is sometimes defined as the inability to perform the duties of your usual job. This
is called an "own occupation" or "regular occupation" definition. Thus, a sales agent who developed a mental disorder that
impaired his ability to deal with the public would be considered disabled, even if he was working full time in some other job.
These
policies are well suited to those occupations that demand special education or experience and are sensitive to even minor health
problems. Surgeons would be considered disabled if they developed a nervous tremor; airline pilots would be able to collect
benefits if they suffered an eye injury. On the other hand, an accountant could lose an eye, a hand, or a foot and still work as hard
as ever.
Some companies add the phrase "and not otherwise gainfully employed." These few words significantly water down the
protection. Some companies add "one or more of the essential duties of your regular occupation." These words add strength to
the definition.
"Any occupation": Some policies will consider you to be disabled only if you are unable to work at any job for which you are
qualified by education, training or experience. This is an "any occupation" definition.
"Total disability": The shallowest protection is from a policy that considers you disabled only if you're unable to work at any job
at all. This definition is seldom found in private insurance plans.
The disability definition is the key to the quality of your plan; it will determine whether or not you'll receive a disability benefit if
you're not able to work. Not only should you read it carefully, but you should also look at the time period during which the
definition is in effect. Some policies will use the "own occupation" definition for the first two years, but will continue to pay
benefits only if you qualify under the "any occupation" definition after that time.
Carson & Weeks will make sure your policy will pay benefits whether your disability arises from accidents or illness. Some will protect you only from
disabling injuries and not illness.
A few, called "non-occupational policies," exclude disabilities that arise from the hazards of work
on the assumption you'll be protected by workers' compensation. You want a policy that will cover disability, whatever the cause.
There are a few exclusions you can't avoid: you are not protected if your disability arises from war or normal pregnancy. Some
policies exclude self-inflicted injuries, yet many accidents could be considered "self-inflicted." There are policies that even exclude
claims that arise from alcohol or drug abuse, very common causes of disability. Avoid any policy that won't pay for mental or
nervous disorders.
All of the options are nice to have -- just like a car loaded with all the extras -- but in buying disability insurance, you will also run
up against the affordability barrier. Carson & Weeks will look for insurance that is non-cancellable (by the insurance company, except for non-payment
of premium) and protects you from any kind of disability, whether it arises from an accident or an illness.
