Work "Group" Disability Insurance vs. Private Disability Coverage

As I have been helping more clients with all their financial needs, I have noticed some things that my clients should be aware of.

This month, let's review Disability.  Many clients have disability coverage if they are an employee of a medium to large company.  It's important that you have this coverage and can protect you and your family if something unforeseen happens.  Some coverage is always better than no coverage at all!

When you have coverage, it's important to read the fine print in your group policy disability coverage so that you know what you are getting from work and how it works.  

Typically, if you apply for disability benefit you won't have too many issues for the first 2 years of coverage. The problem comes in after the 2nd year.  

After 2 years of being disabled, some Work (Group) Disability policies change the definition of disability to "Any Occupation". 

This means that if the insurance company thinks you can make 60% of your income at a job that is somewhat similar, they have grounds to deny your claim.  

Here is a comparison that was done for a client who earns $300k/year in a software company. 

Group vs. Private Disability Coverage

On a side note, if you are self employed, you most likely have close to $0 coverage ($900/month CPP possible) unless you have set up a group policy for yourself and your employees or if you purchased private disability coverage. 

What's the Solution? A Private Disability Policy

If you want to review your current coverage so that you know what you are covered for, give me a call.