Questions About Disability Income Protection Insurance
We answer the most common questions about disability income protection insurance.
Q: Why do I need disability income protection insurance?
A: Your income is the basis of your lifestyle, the driving force for your financial security now and in years to come. Designed for people who are currently employed, disability income protection insurance provides you with an income when a disability prevents you from working.
For just about anyone who earns income, protecting ones assets from the financial effects of illness or injury with disability income protection insurance is part of a prudent financial plan. And with RBC Insurance you can choose from a wide variety of plans offering many types of options and benefits.
Q: Why do I need disability income protection insurance when I've never had any health problems and I don't foresee having any?
A: No one can predict an injury or illness, yet after one arises you may have difficulty obtaining disability insurance. The best time to purchase disability insurance is right now, while you are healthy.
Q: I have a disability policy at work. Why do I need another separate policy?
A: First, make sure you know what your company's group disability insurance policy covers. Are you covered for illness as well as injury? Are you only covered for accidents on the job, or are you protected 24 hours a day, 7 days a week? Also find out how much coverage you have. How much of your income will it replace? Will you be caught short? Once you know the answers to these questions, you'll be able to decide whether or not you need additional coverage. One of our representatives can then help you select the coverage that best suits your needs.
Q: How much disability income protection insurance coverage should I have?
A: If you pay your disability income protection insurance premiums with after-tax money, your benefits will be tax-free. So start with your after-tax income now. Subtract any income you'll receive from other sources - for example, from investments you may have or any property you rent out. Then consider how much money you need to live on comfortably. By comparing your income against your expenses, you'll have a good idea of the amount of coverage you need. Bear in mind, though, that any disability income protection insurance plan will only replace a portion of your income.
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