Long-term disability insurance coverage offers some financial protection if you are unable to work and pay your bills after sustaining injuries in an accident. Basically, this coverage provides a portion of your earnings so that you are able to pay your monthly bills as well as your medical and rehabilitative treatment. The intention of disability insurance is to counteract any financial hardship that could arise if you have sustained serious injuries that prevent you from doing your job. The amount varies depending upon your requirements and it is best to discuss it with your lawyer.
Long-term and Short-term Benefits
In most cases, you will be paid disability benefits for up to 2 years if you are unable to work and meet the requirements of your employer. However, disability benefits are usually classified into 2 categories – long-term and short-term disability coverage. Long-term disability provides a more permanent solution for income replacement when you are unable to work due to your injuries or medical condition. Short-term benefits replace the income you lose when you are temporarily disabled and not able to work.
Different Types of Disability Insurance
There are several types of disability insurance coverage that are available to residents of Brampton, Burlington, and Mississauga. These include:
- Critical illness coverage – provides you with financial support in the event that you’ve been diagnosed with one of up to 20 critical illnesses including cancer, heart attack, heart disease, or stroke. Regardless of whether or not you can return to your job, you will still receive these benefits. Once you have been diagnosed with a critical illness, you must survive for 30 days. However, you will be paid in a single lump sum once you have survived that 30-day period.
- Disability mortgage coverage – should you become unable to work, this coverage provides financial support in order to cover a portion of or all of your mortgage payment up to a certain percentage every 2 weeks or monthly. However, there is a 2-month waiting period before you start receiving your benefits. There are also limits imposed on the amount of coverage you’ll be provided the duration of your benefit coverage.
- Long-term disability coverage – in the event that you are disabled or sick and you are physically unable to work, long-term disability provides a percentage of your earnings that will help pay for living expenses, medical treatment, rehabilitation therapy, etc. You are considered eligible if you can prove that you are physically unable to work during the first 2 years. After 2 years, you must prove that you are unable to perform any type of work.
- Short-term disability coverage – provides temporary replacement of lost income when you cannot work due to a specific medical condition such as a serious illness or injury. Normally, short-term disability benefits are available for a maximum of 4 months (120 days). Employers typically purchase short-term disability coverage for their employees.
We proudly serve the residents in the Mississauga, Brampton and Burlington areas. If you want a personal injury lawyer that represents your best interests, we’d love to review your case and give a free consultation. Contact us today!