7 Benefits of Buying Life Insurance with Disability Benefits

/ Life Insurance / Sep 7, 2022

Life insurance with disability can be an important part of your financial and estate planning process, especially if you have dependents who rely on you financially.

To many, buying life insurance with disability benefits seem like a no-brainer, but others might consider it to be unneeded or too expensive. Here are some of the main benefits to purchasing life insurance with disability, as well as reasons why you should seriously consider it when creating your estate plan.

1) Income Replacement

The main reason to buy life insurance is to protect your dependents if the unthinkable happens to you. But sometimes, a disability can prevent you from earning an income even though you’re still alive. In these cases, life insurance with disability can provide your loved ones with regular payments replacing a portion of your income.

2) Peace of Mind

Purchasing life insurance is a responsible, proactive way to plan for your family in case you should pass away unexpectedly. With disability insurance, it’s all about peace of mind. In case you become permanently disabled and can no longer work to earn money to provide for your family, disability insurance will give them a financial safety net until you can get back on your feet.

3) Estate Planning

As you go through life, you accumulate a lot of stuff. Unfortunately, most people don’t take estate planning as seriously as they should, but that doesn’t mean you should put it off until later in life.

It’s important to get your affairs in order while you still have control over what happens to your assets. If disability were to happen suddenly, it would be very difficult for anyone to deal with your financial and legal matters.

This is precisely where a life insurance plan with disability benefits come in to help.

4) Build Asset Protection

If you’re sick, disabled or injured, life insurance with disability can pay benefits to your loved ones even if you’re unable to work. That means they have money to cover medical expenses and other bills while you figure out how to move forward.

If you’re already disabled and need a new policy, know that there are insurance companies that offer benefits based on your degree of disability. If you get worse and need additional coverage, these companies can provide it. Some may even be willing to give you discounts if your condition stabilizes or improves over time. That way, you don’t have to deal with increasing premiums.

6) Tax Advantages

Certain permanent life Insurance policies also come with tax benefits. They can also help you grow your money over time. Get in touch with our life insurance advisors to know more about tax-saving life insurance plans in Toronto, Brampton, Mississauga, and Hamilton that come with disability coverage.

7) Funeral Expenses and Estate Settlement Costs

The average funeral can cost a family up to $10,000—not to mention lost wages. The best way to avoid financial stress is by planning ahead and buying life insurance when you’re young and healthy. With disability-inclusive life insurance, your heirs could be covered for both funeral expenses and estate settlement costs in case something happens to you that prevents you from working.

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At Trust Life, we have over 30 years of experience providing expert life insurance and investment advice for both businesses and individuals. Get in touch with us today to learn more and discuss your needs.