Edulet
Active member
Disability Insurance, also known as disability income or disability insurance, is an important type of insurance that covers the entire insured's earned income against the threat that a disability makes a financial barrier to completion of planned activities. The disability insurance ensures that the beneficiary receives the same standard of living that he would have otherwise enjoyed had the disability not been existent. It is necessary for every person who is generally eligible for retirement benefits to have disability insurance in case he becomes unable to earn and receive retirement benefits on his retirement. It is also necessary for the Government to ensure that the former spouses of retired personnel receive fair compensation for their reduced lifetime earnings and services. This policy has become extremely important to a number of people who work in certain industries such as the mining industry and agriculture.
In Canada, there are several disability insurance schemes which are offered by the Government. Some of these schemes pay benefits to individuals for a fixed period, while others offer a monthly income. Some disability insurance policies pay the full amount of monthly income to the claimant once they become incapable of performing their usual tasks; while some allow them to choose the mode of payment which they prefer. In Canada, the most popular disability insurance scheme which pays the full monthly amount to the claimant is the Canada Disability Corporation (CDC).
Another form of disability insurance is the Income Support Insurance Plan (ISIP), which pays the entire monthly gross monthly income of the applicant after she becomes incapable of performing any routine task due to an injury, illness, surgery or disease. The plan pays a monthly benefit to the applicant who meets the eligibility criteria. Some disability insurance policies pay a lump sum benefit to the applicant, while others require the applicant to wait for a specified period before applying for a payout. These policies are more popular with those who had undergone serious injuries or illnesses prior to retirement. The lump-sum benefit of the income-support policy compensates for the loss of the income for a specific period of time.
The government also provides several private disability insurance benefits to workers who have been injured at work. The Canada Long Term Care Insurance Plan (LLTC) is a type of private workers' compensation insurance that pays benefits to individuals in need of assisted living or nursing home care. The Canadian Social Insurance Plan (CSN), also for workers who have become permanently disabled, provides medical expenses and costs for disability-related activities for the lifetime of the applicant.
In order to qualify for disability insurance policy, you must be working in a job that pays at least one hundred and twenty hours a week and you should not be receiving any other income such as social security or income tax benefits. In order to determine your level of monthly income, the Disability Tax Credit calculator can be used. To calculate the monthly income, take your net salary and minus your dependents take the result is the monthly net income after all supporting dependents are taken into account. If the monthly net income after supporting dependents is less than the maximum monthly disability benefit amount then you do not qualify for disability insurance benefits. On the other hand, if the monthly net income is more than the maximum benefit amount then you may qualify for the insurance.
Canadian social security also provides disability insurance benefits to unemployed workers. You can also avail of the disability insurance benefits from federal and provincial social security programs. These programs offer assistance to unemployed workers who have reached the ages of eighteen to fifty-four years, but they cannot qualify as dependents of their parents. Eligibility of these programs depends on the ages, receipt of social security and work experience. In addition, if you are a student who has stopped studying or if you are a member of the military, then you may also qualify for these benefits.
In Canada, there are several disability insurance schemes which are offered by the Government. Some of these schemes pay benefits to individuals for a fixed period, while others offer a monthly income. Some disability insurance policies pay the full amount of monthly income to the claimant once they become incapable of performing their usual tasks; while some allow them to choose the mode of payment which they prefer. In Canada, the most popular disability insurance scheme which pays the full monthly amount to the claimant is the Canada Disability Corporation (CDC).
Another form of disability insurance is the Income Support Insurance Plan (ISIP), which pays the entire monthly gross monthly income of the applicant after she becomes incapable of performing any routine task due to an injury, illness, surgery or disease. The plan pays a monthly benefit to the applicant who meets the eligibility criteria. Some disability insurance policies pay a lump sum benefit to the applicant, while others require the applicant to wait for a specified period before applying for a payout. These policies are more popular with those who had undergone serious injuries or illnesses prior to retirement. The lump-sum benefit of the income-support policy compensates for the loss of the income for a specific period of time.
The government also provides several private disability insurance benefits to workers who have been injured at work. The Canada Long Term Care Insurance Plan (LLTC) is a type of private workers' compensation insurance that pays benefits to individuals in need of assisted living or nursing home care. The Canadian Social Insurance Plan (CSN), also for workers who have become permanently disabled, provides medical expenses and costs for disability-related activities for the lifetime of the applicant.
In order to qualify for disability insurance policy, you must be working in a job that pays at least one hundred and twenty hours a week and you should not be receiving any other income such as social security or income tax benefits. In order to determine your level of monthly income, the Disability Tax Credit calculator can be used. To calculate the monthly income, take your net salary and minus your dependents take the result is the monthly net income after all supporting dependents are taken into account. If the monthly net income after supporting dependents is less than the maximum monthly disability benefit amount then you do not qualify for disability insurance benefits. On the other hand, if the monthly net income is more than the maximum benefit amount then you may qualify for the insurance.
Canadian social security also provides disability insurance benefits to unemployed workers. You can also avail of the disability insurance benefits from federal and provincial social security programs. These programs offer assistance to unemployed workers who have reached the ages of eighteen to fifty-four years, but they cannot qualify as dependents of their parents. Eligibility of these programs depends on the ages, receipt of social security and work experience. In addition, if you are a student who has stopped studying or if you are a member of the military, then you may also qualify for these benefits.
