Are you self-employed in Quebec? Are you looking for a disability insurance policy to protect yourself from unforeseen accidents and illness?
Keep reading to find out why disability insurance is so important for self-employed workers. Plus, we’ll explain everything you need to know to choose the right policy!
Disability insurance for the self-employed: what to know
Unlike regular employees, self-employed people don’t have group insurance. If you’re self-employed, you will need to seek out personal disability insurance to protect yourself against the unexpected.
Disability insurance allows you to receive monthly benefits if you are unable to work due to an accident or illness.
These benefits are tax-free and generally cover about 75% of your usual salary. However, they might be more or less depending on what kind of insurance you get, the insurance premium and your specific condition.
What is covered by disability insurance?
Disability insurance for self-employed individuals can cover both personal and business expenses. This includes rent, mortgage, groceries, internet, phone service, car payments or even bank loans (line of credit, credit cards, etc.).
The different types of disability insurance contracts
If you’re self-employed in Quebec, you can choose from three types of disability insurance contracts:
Guaranteed renewable disability insurance policy
Guaranteed renewable disability insurance means that the insurer must renew the contract each year. However, the insurer can revise the policy conditions if there have been changes during the year (new job, changes in health, etc.).
Non-guaranteed renewable disability insurance policy
Under this type of policy, the insurer is not obligated to renew the policy every year. They can also raise insurance premiums.
Non-cancellable insurance policy with guaranteed renewal
This is typically the best option if you are self-employed. However, this kind of policy is usually more expensive and harder to obtain. The terms of the policy are fixed when the contract is signed. This means that the insurer cannot cancel the contract, increase the premiums or change the agreed upon terms.
What to consider before choosing your disability insurance
To ensure adequate coverage, there are several things to keep in mind when selecting an insurance policy.
Pay close attention to how long you can actually receive benefit payments. Insurers may offer policies that issue benefits for a fixed period of time (between 2 to 5 years).
You can also choose to receive benefits until you are able to work again or until you turn 65. Self-employed workers may prefer this second option, as you will receive a consistent income if you are unable to work for several years.
Wait times also vary. You may have to wait 30, 60, 90 or 120 days for your disability insurance to take effect. The shorter the wait period, the higher your premiums.
And finally, it’s important to look into how the insurance company defines disability. Different companies will have different definitions of ‘disability’ and do not necessarily apply this term equally to all physical or mental health issues.
When do you need to contact a disability lawyer?
Every year, insurers deny self-employed workers monthly disability benefits.
Some insurers deem that the worker’s disability does not actually prevent them from working. Other insurance companies will deny the claim based on failure to declare a pre-existing condition or illness.
If you’ve been denied benefits, a disability insurance lawyer can help you claim what’s rightfully yours. These legal experts help self-employed workers get the benefits they deserve by analyzing and advising on insurance contracts or representing the self-employed.
MedLégal : defending the rights of the self-employed
If you are self-employed and your insurance company has not recognized your disability, contact the expert health lawyers at MédLegal. Our legal team will help you understand the terms of your insurance contract and see that your insurance company honours these conditions.