Living Benefits: How They Work

Living benefits or living benefits insurance is an insurance policy that protects you from loss or reduced income in the event that an injury, accident, illness or dependency prevents you from working on your business, job or profession.

When events like the above happen, many of us who depend on active income will find ourselves in a situation where there’s no or very few money coming in but our obligations on bill payments, living expenses, and debt servicing won’t necessarily stop.

For most people who depend on active income, it is not unusual to find ourselves in a difficult financial situation if an illness or disability stops us from performing work that makes us a living.

Most people in Winnipeg are protected with basic life insurances for final expenses, income replacement or mortgage loan protection but many are not aware that they also need financial protection in case of disability, injury or illness and this is where living benefits insurance comes into play.

The common sentiment when it comes to life insurance is that it only pays out when the life insured passes away and don’t necessarily pay when the life insured gets hurt, become disabled or gets sick. 

Living benefits is that piece of the puzzle that most people miss when it comes to fully protecting themselves financially for life’s unexpected twist of events. 

You protect your loved ones financial interest with life insurance. Now, it’s time to protect yourself with living benefits insurance.

Living benefits insurance ranges from monthly income replacement to lump sum benefits and they are as follows:

Disability Insurance

disability insurance winnipeg

Disability insurance is a living benefits insurance that aims to replace a portion of your income should disability prevent you from working at a job or business in order for you to continuously earn a living even when you’re recovering from a disability.

Some group insurance policies have long-term disability insurance and you may be part of the group benefit plan if you’re working as an employee. 

If you think you are covered with a disability insurance, you have to check your benefits manual to make sure which kind of disability insurance you are covered with from your job. Most employers group insurance plans covers their employees with long term disability insurances of up to two years but again, you have to double-check.

Most group long-term disability insurances have between 90 to 120-day waiting periods so it may also be important to have a short-term disability insurance in place.

Click here to learn more about disability insurance.

Critical Illness Insurance

Critical illness insurance is a living benefits policy that pays you a lump sum for the amount insured in case of critical illness conditions like cancer, heart attack, stroke, multiple sclerosis, kidney failure, blindness, and many other serious conditions.

Put simply, it’s a type of insurance that financially protects you if you become critically ill. The tax-free proceeds can be used to supplement your income, to pay off existing debts, to pay for alternative treatments, etc.

Is critical illness insurance important to you?

critical illness insurance winnipeg

Have you ever known a friend, colleague or a relative who was diagnosed with cancer, had a heart attack, stroke or a kidney failure?

Pretty much every one of us would know at least one. This is because critical illnesses are so common these days.

In fact, statistics show that one in two Canadians is expected to develop cancer in their lifetime.

A critical illness insurance policy financially protects you from against 25 to 26 different critical illness conditions and they are as follows:

  • Acquired brain injury
  • Aortic surgery
  • Aplastic anemia
  • Benign brain tumor
  • Bacterial meningitis
  • Blindness
  • Cancer
  • Coma
  • Coronary artery bypass surgery
  • Deafness
  • Dementia, including Alzheimer’s disease
  • Heart attack
  • Heart valve replacement or repair
  • Kidney failure
  • Loss of independent existence
  • Loss of limbs
  • Loss of speech
  • Major organ transplant
  • Major organ failur
  • Motor neuron disease
  • Multiple sclerosis
  • Occupational HIV infection
  • Paralysis
  • Parkinson’s disease and specified atypical parkinsonian disorders
  • Severe Burns
  • Stroke

Click here to learn more about critical illness insurance.

Health Insurance

health insurance winnipeg - fill the gap

Most people would agree that we are all blessed to have been living in Winnipeg or in Canada in general as it’s one of the few countries that offer universal health insurance to its residents but not a lot of people know that there are limitations on the health benefits that most provincial healthcare insurances provide.

Going to or being rushed into an emergency room, staying in a hospital for a night or two won’t break the bank, as most of the times, they are free but there are many other medical costs that you have to pay out of pocket if you or your family don’t have a group or individual health insurance.

A group or individual health insurance aims to cover medical costs that aren’t usually covered by our provincial health insurance.

Costs incurred on ambulance services, prescription medicines, vision care, dental care, physiotherapy, and many others aren’t necessarily covered by your provincial health benefits and therefore should be paid by the individual 100% if no group or individual health insurance is in place.


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