As one of the ‘living benefits’ in insurance, we often speak of income replacement in the event of disability. We look to coverage through group benefits at work, and the benefits of a personal policy cannot be underestimated. However, there are people whom would typically be missed by such coverage. The newly self-employed, unemployed, those with low earnings, students, and the retired may not be eligible for traditional disability plans, yet they still could benefit from payments in the event of disability.
There is at least one solution that I like to discuss with clients. It provides accident and/or illness coverage (there are more qualification factors for illness) and will provide a level of benefit for those otherwise without disability insurance. While greater amounts are available to those with higher incomes and full-time employment, I position the basic coverage as being there to cover the rent, mortgage, or other living costs (usually $1,000 available). There are, of course, conditions and limitations that must be reviewed, but it is worth having the discussion with an insurance broker if you hadn’t thought of this or thought there was nothing available to meet your circumstances. For the accident only (not illness) coverage, there are few questions and medical underwriting is not required. I hope this gives you something else to consider for your financial protection planning.
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This is the blog of Antony (Tony) Ratcliffe of Ratcliffe Wealth & Risk Management, operating in Edmonton, Alberta, Canada. Tony is an independent Life and Accident & Sickness Insurance Agent and Broker. Blog entries are an expression of the author’s personal opinions, and the insurance companies represented will not be held liable in any way for the opinions expressed herein.
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