DISABILITY INSURANCE

Disability insurance covers the risk of an insured person becoming disabled, either permanently or temporarily. The risks of becoming disabled are much higher than the risks of dying as you can imagine. The financial risk arises from the disruption in a person’s ability to earn an income. Most disability insurance pays a monthly amount if the insured person becomes disabled. This amount will always be limited to a set percentage of the insured person's income (typically at 70% maximum of pre-tax income). This limit is in place to provide an incentive for the insured person to go back to work. For a detailed description of the various types of disability insurance, click on Disability Insurance.