Disability Insurance

What is Disability Insurance?

Imagine suddenly losing your ability to work due to an unexpected injury, illness, or serious mental health issue. Without a steady income, how would you cover your everyday expenses or support your family? This is where disability insurance becomes essential. By securing the right coverage, you ensure that your financial stability remains intact, even when life throws a curveball.

Disability insurance is designed to replace a portion of your income if you become unable to work due to a disability. With this coverage, you and your family can maintain financial stability even in the face of serious health challenges.

How Does Disability Insurance Work?

In Alberta and across Canada, your provincial health care plan covers medical expenses if you become disabled. However, it won’t replace the income you might lose as a result of that disability. That’s where disability insurance comes in.

What’s Covered?

Disability insurance offers a financial safety net, ensuring you have a portion of your income replaced if you’re unable to work due to an injury or illness. There are two main types of disability insurance:

1. Short-Term Disability Insurance: This coverage is designed to replace your income for a shorter period, typically ranging from a few weeks to several months. It’s ideal for temporary disabilities where recovery is expected relatively quickly.
2. Long-Term Disability Insurance: If your disability is more severe or lasts for an extended period, long-term disability insurance covers income loss over a longer duration, potentially up until retirement age.

Many people choose to combine both types to ensure comprehensive coverage, no matter the duration of their disability.

Do I Need Disability Insurance?

Without employer-sponsored disability insurance, many individuals are left without any income protection in the event of a disability. Even if you have some coverage through your employer’s health benefits package, it’s worth considering whether this coverage is sufficient.

For example, an employer might provide solid short-term disability benefits but offer limited or no long-term disability coverage. In such cases, topping up your employer-sponsored plan with additional coverage through a third-party provider can give you peace of mind, knowing that your income will be fully protected.

Additionally, if your employer pays for your disability insurance premiums, any benefits you receive could be taxable. This means the amount you receive might be less than expected once taxes are deducted. For more details on the taxation of disability insurance benefits, check out our detailed guide here.

Which Disability Insurance Plan Is Right for Me?

Choosing the right disability insurance plan can be overwhelming, but you don’t have to do it alone. At First Foundation, we partner with some of Canada’s best insurance providers to help you find the coverage that fits your needs.

Here’s how we can assist you:

1. We’ll answer any questions you have about disability insurance and provide the information you need to make informed decisions.
2. We’ll help you compare quotes and options from different insurance providers to ensure you get the best coverage at the best price.
3. We’ll guide you in choosing the right balance of short-term and long-term coverage to protect your income effectively.

Who Can Benefit from Disability Insurance?

Disability insurance isn’t just for full-time employees. We offer a variety of individual and group plans tailored to different employment situations, including:

• Full-time employees
• Part-time employees
• Home-based employees
• Self-employed individuals
• Entrepreneurs
• Business owners

Whatever your work situation, there’s a disability insurance plan that can help protect your income.

Get Personalized Advice Today

Don’t leave your financial future to chance. Protect your income with a comprehensive disability insurance plan. Whether you’re looking for a new policy or considering supplementing your existing coverage, our team is here to help.

Take the next step: Contact one of our insurance advisors today for personalized advice, or fill out the form below to get your free disability insurance quote.