What is short-term disability insurance?
STD insurance is commonly offered by employers as part of their benefits package, providing from several weeks to around six months of coverage. It’s different from employment insurance, but we’ll talk about that later. Once your short-term disability claim is approved, STD insurance will replace some of your income for up to 26 weeks. After that time, if you’re still unable to work, you might switch to long-term disability insurance or another form of disability benefit. The main difference between the two is time: Short-term disability is usually measured in weeks or months; long-term disability is measured in years…
We’re not just talking about planning their first birthday party though. Besides saving for their education with an RESP, you should consider life insurance as well. It may be uncomfortable to think about, but it’s worth the effort to prepare for the what-ifs.
“Life insurance is about the people who are left behind,” explains Lorne Marr, director of business development at Hub Financial and founder of LSM Insurance. “You have to think of it as a financial instrument that will give you time to grieve. You don’t want to have to rush right back to work if a child passes away.”
There are sunnier reasons for getting life insurance for your child though. So, while your new babe is having a nap, here’s a quick rundown of everything you need to know about buying a policy for kids…
What benefits do you get from long-term disability?
When you qualify for LTD benefits, you’ll get a monthly payout for covering everyday expenses like your mortgage or rent, groceries, utilities, etc. (Find out the difference between life insurance and mortgage insurance.) Most LTD policies pay out benefits for up to two years if you can’t return to your job. If, after those two years, you’re still unable to work, the benefits may continue until you reach 65 years of age and can access the Canada Pension Plan. Alternatively, you may receive provincial disability support or Workplace Safety and Insurance benefits…
How life insurance helps families
From missing a loved one to various financial impacts, even young families aren’t immune to the after-effects of death. “When someone passes away and they don’t have life insurance, [the family’s] savings get eroded and their long-term financial goals get wiped out,” says Lee Browning, a founding partner and senior advisor at Southlake Wealth & Estate Group in Richmond Hill, Ont. “I need to know I did my job [as a provider] so that doesn’t happen.”
While Browning’s day-to-day work is all about balancing dollars and cents, he recognizes his job has a greater purpose: to make the right recommendations so his clients have financial support when they truly need it…
This guide will show you:
What is life insurance? How does is it work?
Do you need life insurance?
How much life insurance do you need?
What are the different types of life insurance? Which one is the best?
How much does life insurance cost in Canada?
Life insurance extras: Some other things to consider
Buy the life insurance: How Canadians can prepare
Compare personalized quotes from some of Canada’s top life insurance providers*
What is life insurance? How does it work?
You likely know the gist of life insurance. In Canada, it is a contract between you and an insurance provider that you make monthly or annual payments (better known in the industry as “premiums”); in return, under specific conditions—namely, death—your family or other people you name will be paid an agreed-upon amount…