CLHIA-ACCAP - Consumer Information

A guide to disability insurance

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1 THE BASICS What is disability insurance? A disability - whether it's sudden or because of a degenerative condition - can rob you of your ability to earn a living. Disability insurance is a type of coverage that gives you protection against the chance of losing income if you become disabled and you are not able to pay your expenses. Why should you purchase disability insurance? Most people recognize the need for life insurance, but many do not understand the need for disability insurance. The fact is, when you are disabled because of an illness or injury, your income stops - but your bills don't. Did you know that: • 1 in 3 people, on average, will be disabled for 90 days or more at least once before they reach age 65? • A disability can last for months or even years? Consider these situations: • • • • • • 1 A person spends months recuperating from a car accident. A carpenter breaks an arm while skiing and can't work for eight weeks. An overworked doctor must "take it easy" after a heart attack. Chemotherapy saps the energy of a busy store manager. A stroke affects a computer programmer's ability to reason with numbers. An individual has been diagnosed with major depressive disorder following a traumatic event.

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