COVID-19 Response

April 20 Update

Posted on: April 20th, 2020

If there is one thing that the COVID-19 virus has achieved, it is reminding us that our wealth to a very large extent is reliant on our ability to work and thus our health.  Indeed, for most young and middle-aged Canadians, our ability to work is our greatest financial asset.

As a benefit advisory firm, we often see that employees very rarely understand or are even aware of the basic details of their Long-Term Disability plan. There can be stress and disappointment at claim time, if you do not have the coverage you need. Below are key items of your policy to review:

  • Coverage for High Income Earners – plans often only insure to a certain income level, which may be below your salary. Does your plan have the option to increase coverage?
  • Definition of Disability – plans may specify between Own Occupation Coverage, Regular Occupation Coverage and Any Occupation Coverage. It is important to understand the difference.
  • Income – most plans are set up top only cover salaried income, and exclude bonus or commission income. This can significantly change the amount you will receive in a claim.
  • Total or Partial Disability – does your plan cover only total disability? Or does it cover partial disability as well?

The current crisis may have revealed some weaknesses in our financial pictures; now might be the ideal time to review your Long-Term Disability plan to make sure it will provide the required income when you need it. Your benefit advisory firm will to help you understand your disability plan and determine the correct amount of coverage for your needs.

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