Icy conditions continue to occur, leading to record numbers of emergency room visits. The impact on many consumers' finances is often dramatic – unless they have disability insurance.
While 40% of Quebecers live paycheck to paycheck, standing still and being away from work for more than a month leads to a major financial crisis. Fortunately, many benefit from individual or group disability insurance.
In the latter case, if you are injured and your doctor or an emergency doctor orders a sick leave, you must inform your employer as soon as possible.
You (or someone close to you) must fill out a form and provide certain information. The person responsible for the group insurance will then check whether you are entitled to benefits.
“Coverage varies from employer to employer, but short-term disability benefits typically cover a period of 6 to 12 months. In the case of longer-term incapacity for work, the pension can last up to the age of 65 or retirement. Some employers only offer long-term coverage,” explains Marie-Lou Girard, group insurance development consultant at Desjardins.
Group disability insurance replaces part of your income, usually a percentage of your salary, in the event of an accident or illness. As a rule, the insured person does not lose their other benefits.
Individual insurance
Many consumers do not have group insurance. You therefore rely on individual occupational disability insurance.
There are two types of protection: credit insurance, which is limited to covering mortgage payments, and individual insurance, usually sold by an advisor who holds an insurance license. It typically replaces between 60% and 80% of your income.
A person who is injured in the course of their work could receive benefits from the CNESST as well as disability compensation from their individual insurer. It all depends on his contract.
“The compensation paid by the insurer would complement that of the CNESST,” explains Pascal Gauvin, senior director of member and customer relations at Desjardins Assurances. It won’t replace 100% of income.”
No matter where you fall
If you fall in your employer's parking lot, at the mall, on the sidewalk, or in your driveway, the insurer will not take it into account and will take care of you.
You or one of your relatives must contact him as soon as you have a medically prescribed absence from work. You then have to fill out a form. The insurer is responsible for obtaining information from the doctor.
Typically, the cost of individual disability insurance varies depending on monthly compensation (from $2,000 to $5,000), waiting period (or waiting period), age, health status and income. Typically, the monthly premium in Quebec is between $20 and $160.
You must therefore shop with insurers or use an online comparison provider (e.g. Hardbacon or HelloSafe).
Advice
- Allow for a waiting period, which varies depending on the insurance policy or type of event. Usually it takes around 15, 30, 90 or 180 days.
- Before signing a contract, make sure you understand its terms and, above all, the concept of disability, insurance coverage, exclusions, additional protection, duration and amount of compensation.
- Some compensation may be taxable, especially if the employer pays part of the premium.
- From reading on the Financial Markets Authority website.
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