Income Protection
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The need for disability insurance is often underestimated, making it a critical component of comprehensive income protection. Despite common misconceptions, relying solely on group insurance may not provide the extensive coverage individuals believe they have. Disability insurance serves as a safeguard, offering financial support in the event of unexpected injuries or illnesses that may impede your ability to work.
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When considering disability insurance, it's crucial to understand the specific definition of disability, as it determines whether you'll receive benefits. It depends on your policy provider, some definitions include clauses like 'we'll pay you, but if you can work somewhere else, it's not considered a disability.' These nuances are important to consider in these conversations.
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Many group disability plans may stipulate that they'll only pay if you can't work anywhere else, which can be limiting.
The Guardian definition of disability, which is considered one of the best in the industry, states that if you can't perform your current job, regardless of whether you can work elsewhere, they will pay you.
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The benefit period is the maximum length of time the insurance will pay out benefits. It can range from a few years to until the insured reaches retirement age. Longer benefit periods typically result in higher premiums.
Income protection is fundamentally centered around safeguarding your financial well-being through disability insurance. The capacity to earn a steady paycheck is undeniably your most significant asset, representing the cornerstone of your financial stability. Nearly all reputable financial experts would concur on the importance of securing the highest level of disability insurance possible.
FOCUS AREAS
✔ Disability Insurance
✔ Group policies
✔ Understanding the waiting and benefit periods and what they mean.
✔ Determining if your policy has occupation-specific considerations
✔ Understanding the policy terms and what is covered/ considered a disabilty.
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