Alec Caldwell
Disability plans Part 2: Accident-Only Plans
Canadian Contractor Coverage InsuranceThey are cheap, but look out for restrictions and limitations
ACCIDENT ONLY Plans – These are the most affordable coverage’s available for contractors. The downside of them being well priced is; insurance companies put limitations and restriction in place to reduce claims. Make sure you check these out beforehand.
Remember accident plans don’t cover areas like carpal tunnel in the wrists, tennis elbow, disc problems, lower back soreness and more. These types of ailments are sicknesses and can become a prolonged problem.
ACCIDENT & SICKNESS plans normally cost more, but are a safer bet, as they lessens the chance of you falling through the cracks at claim time. Some claims might start out as an accident, but end up a sickness. When this occurs it means you are still covered. Sicknesses are items like arthritis, joint issues, cancer, heart attacks and more.
When do they start paying you?
On accident some companies pay from the first day. Meaning if you’re off work 6 months, they’ll pay you 6 months. Other plans offer 30, 60, 90 day start, which reduces your premiums. If you choose for example a 60 day start, it means on a 6 month claim; you’ll receive 4 months benefit.
How long do plans pay on claim?
Plans vary and can pay benefits between 1 to 10 years, to age 65 and lifetime. The longer the period you choose, the more it costs. Keep in mind all plans come with definitions, which basically tell you what a disability means. It’s important to check these out, as selecting a lifetime benefit can mean the insurance company will only normally pay your claim up to 2 years, if you cannot work in your regular occupation. After 2 years, they switch the definition to any occupation, meaning they’ll only continue paying if you can’t work in any other occupation with regards to your education or more. Meaning if they think you can stock cans of beans somewhere on shelves, they’ll stop your benefits.
For more information on this, call us Toll Free at: 1-866-366-2930 or email alec@carahs.org
NEXT WEEK – How do you know what’s best for you and how do you find it?
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