

The Ultimate Guide to Short Term Disability Insurance in Canada
If you work for a living, you probably expect to be able to go to work and do your job every day.
Several types of contracts are available. With those that guarantee a guaranteed premium and renewal, the cost of your insurance is fixed and the insurer cannot change the terms. If you choose a non-guaranteed premium and guaranteed renewal instead, the cost of your insurance may increase in the future. When neither the premium nor the renewal is guaranteed, both the cost and the terms may change. Pay attention to your policy: is there any mechanism, such as a cap, that controls the increase for non-guaranteed premiums? A very aggressive offer at the beginning could go up and be much less attractive than at first glance.
Following an accident or illness, a doctor will confirm your disability. The period of time between that time and the time you begin receiving benefits is called the elimination period. It can be 30 days, 60 days, 90 days or even 120 days. This is the period during which you must support yourself from your personal savings. When you sign your contract, you choose the period that suits you. A shorter waiting period will result in higher premiums, and a longer waiting period will result in lower premiums. So if you have enough savings to support your lifestyle for 90 days, you'll pay less than if you choose a 30-day waiting period.
Disability insurance provides you with temporary income replacement. Short-term disability insurance covers up to 6 months, and then long-term insurance can take over if you are still not able to return to work. The shorter the duration you want to insure, the better your premium will be. For example, if you want to receive benefits for 2 years in case of illness, your premium will be less expensive than if you want to insure yourself for a disability that would last 5 or 10 years.
It's important, especially if you're young, to look at benefit indexing. Indexing refers to an automatic change in the value of a benefit based on changes in certain economic data, such as the cost of living. It's what makes your benefits work for you 10 or 15 years from now! Indexed benefits will increase over the years and allow you to maintain your purchasing power. If not, inflation may get ahead of you and what you receive will seem lacking compared to the cost of living!
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