nainesh kotak: disability benefits reduce risk while providing peace of mind
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investing in a private, personal disability plan is a smart way to decrease risk in your work life and increase your peace of mind. getty
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in the pre-gig economy, most canadians worked in traditional jobs, which offered standard disability benefits as part of their pay package. but today’s reality is far different.
employers that traditionally offered group benefits plans to their employees to cover medical and disability benefits are cutting back, and maybe not offering the type of plans they used to. and then there are those who are working from home, freelancing, or part of the gig-economy — working for themselves as an uber driver, a home baker, a fitness trainer, food delivery driver, etc. this trend has been driven higher and faster, especially as the pandemic continues and workers — as well as customers – spend more time at home. many of today’s workers may wonder if disability benefits are still important and worth the money?
a disability plan offers piece of mind
the simple answer is if you were to lose your income next week or next month for any reason — sudden illness or a debilitating accident — a disability benefit would replace that lost income for a prescribed period. in essence, your employer’s disability plan offers you peace of mind that if you’re injured or ill and unable to work, compensation will be provided.
short-term disability typically provides benefits for up to six months, depending on your employer’s plan. long-term disability policies will provide for payment for any type of illness or sickness that prevents you from performing the essential tasks of your employment and for payment after two years if you are prevented from performing any employment that you are suited to by way of education, training or experience.
but what about those without an employer-sponsored disability plan? if you’re an online seller, a private contractor, or generally self-employed, could you — or should you — purchase your own personal plan?
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one way to think about it is to compare it with other common insurance purchases. you can’t legally drive a vehicle without car insurance, and most homeowners purchase fire insurance to protect their single largest investment.
disability insurance is just another way to hope for the best, but plan for the worst. if your worst-case scenario is being suddenly unable to work and needing funds to pay for food and housing, a disability plan can help you get through that nightmare scenario.
hope for the best, plan for the worst
private disability plans are not overly expensive, and you can tailor your plan to cater it to your individual needs. purchasing private disability insurance allows policyholders to customize their coverage and select benefits that remain in effect for as long as the person cannot perform his or her own occupation. benefits can be purchased through banks, credit unions, insurance companies and other entities.
but there’s another compelling reason to purchase a disability plan.
nainesh kotak is the founder of kotak personal injury law. supplied
not all disabilities are physical — many come in the form of mental health challenges, which will impact one in five canadians at some point in their lives.
issues such as anxiety, depression, chronic pain or debilitating migraines, can make it difficult to keep any type of employment. paying for coverage for these so-called invisible illnesses may cost more, but for those who suddenly need income replacement for these conditions, it can keep a roof over your head and food in your refrigerator.
it’s also important to keep in mind that legitimate claims can be denied by your insurer when applying for a short- or long-term disability claim. obtaining a legal opinion can speed up the process and assist in navigating the complex insurance process to receive the benefits that you deserve.
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covid-19 has changed our workforce almost as dramatically as it has changed our healthcare system. many canadians lost jobs in legacy or traditional careers, part of a growing number of people who can no longer rely on employer disability plans for that all-important income replacement safety net. investing in a private, personal disability plan is a smart way to decrease risk in your work life and increase your peace of mind.
nainesh kotak, is the founder of kotak personal injury law, a firm focusing on protecting their client’s rights to justice and obtaining the compensation their clients deserve. he also serves as the chair of the long-term disability section of the ontario trial lawyers’ association.
for more information on disability insurance contact the canadian life and health insurance association.
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