Disability Income Replacement
Disability Income Replacement
What is the Disability Income Replacement Benefit under the Statutory Accident Benefits Schedule?
The Income Replacement Benefit intends to compensate a person who is disabled and unable to work, suffering a substantial inability to perform the essential tasks of their employment. This benefit is particularly important for those who need disability insurance.
Substantial inability test
The central point in qualifying for Disability Income Replacement Benefits hinges on whether the person suffers a “substantial inability to perform the essential tasks of their employment.” This test involves a two-step analysis. The first step is to determine the essential tasks of the person’s pre-accident employment. The second step is to determine whether the person is substantially unable, as a result of the accident, to perform those tasks.
Disability Insurance for Self-Employed
Self-employed individuals are also entitled to receive Disability Income Replacement Benefits. This ensures that even those who run their own businesses can benefit from this type of insurance for long term disability.
Calculating Income Replacement Benefits For Self-Employed
Income Replacement Benefits are calculated on a monthly basis. The benefit depends on the annual income. Factors considered in the calculation of Income Replacement Benefits for employees are the gross salary of the person prior to the accident, any gross employment or self-employment income that the person may earn before the accident, as well as any other income replacement assistance (e.g., short or long-term disability benefits, CPP-disability benefits) that the person may be entitled to receive. Income Replacement Benefits also ramp down when the injured person turns 65 years old.
Canada Life Disability Insurance
For comprehensive coverage, consider Canada life disability insurance. This insurance offers robust protection for various disability scenarios, including both short-term and long-term needs.
Long Term Disability Income Insurance
Long term disability income insurance provides extended coverage for those unable to work due to severe and prolonged disabilities. This ensures you receive income support over an extended period, helping you manage financial stability during challenging times.
Life Insurance and Disability Insurance
Combining life insurance and disability insurance can provide a comprehensive safety net. This combination ensures that both your life and your income are protected, offering peace of mind in case of unexpected events.
Life Insurance for Disabled
Life insurance for disabled individuals is tailored to meet the unique needs of those with disabilities. This type of insurance ensures that you and your loved ones are financially supported, regardless of your disability status.