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Long-term disability insurance works when you can’t due to an injury or illness. It pays a monthly income while you are disabled, allowing you to focus on recovery without worrying about paying the bills. While many employees have coverage through their workplace benefits, self-employed and small business owners are not as fortunate.
Therefore, they need to obtain private disability insurance through an insurance company. The Edge Benefits Inc is one provider of disability coverage in Canada. But how do The Edge products stack up against offerings from other insurance companies? Should you get a policy from The Edge Benefits? Read on and find out.
- Key takeaways:
- The Edge offers a disability insurance policy that provides income replacement while you claim disability benefits due to an injury or illness.
- While it may be easy to qualify for disability coverage, the exclusions and limitations prevent it from competing with the best disability insurance products in the market.
- Although you can get a quote from its website, you have to buy disability insurance from a licensed insurance professional.
About The Edge Benefits Inc
The Edge Benefits Inc is not an insurance company—it partners with insurance companies to protect the Canadian consumer. These insurers include The Co-operators, Green Shield Canada, Chubb, and La Capitale.
Through its network of over 25,000 licensed insurance advisors, The Edge offers affordable life insurance and living benefit solutions for the self-employed and small business owner. Insurance solutions include guaranteed issue life insurance for the hard-to-insure, income replacement benefits, critical illness coverage, health and dental insurance, and travel insurance.
In 2013, it revolutionized the insurance buying process by getting rid of paper applications and launching a 100% electronic application system. Two years later, it became a member of The Co-operators Group Limited. And in 2019, The Edge Benefits increased the amount of guaranteed issue critical illness insurance to $50,000, representing the highest figure in Canada.
The Edge Benefits has over 60,000 policyowners and paid over $200 million in claims over the last 15 years.
Key facts about The Edge Benefits Inc
AM Best Rating: Not rated
Head office: 1255 Nicholson Road, Newmarket, ON, L3Y 9C3
Website: https://www.edgebenefits.com/
Contact phone number: 1-877-902-3343
What Disability Insurance Plans Does The Edge Benefits Offer?
Unlike other insurance companies, which often have many disability insurance products, The Edge Benefits takes a simplified approach and only has one insurance plan for individuals and one for self-employed and small business owners.
Income Replacement Benefits
The Edge Benefits offers guaranteed issue injury-only coverage, meaning you qualify for coverage as long as you meet these criteria:
You are between 18-69 years old,
You work 20+ hours per week and 35+ weeks per year, and
You don’t have any injury or pre-existing condition restricting your movement and ability to perform daily activities.
Depending on your income, you can choose a monthly benefit amount between $1,000 to $6,000. Also, you can choose a waiting period between 0, 30, or 112 days. The waiting period is the time you have to wait after a total disability before you can claim benefits. In addition, you have three choices for the benefit period: two years, five years, or until you reach 70 years old.
A total disability is one where you are unable to perform the important duties of your regular occupation due to injury or illness. Furthermore, you cannot engage in any other gainful job and must be under the care of a physician. After 36 months, you will only continue receiving benefits if you also can’t work in a reasonable occupation, which is one where you can earn at least 80% of the monthly benefits.
Besides accident coverage, you can also get illness coverage as an optional add-on. Underwriting is simplified, meaning you only have to answer a few medical questions to qualify. Because of the simplified approach, there are no medical exams, which means The Edge Benefits can issue your policy much more quickly.
- Pros:
- Get injury disability insurance on a guaranteed-to-issue basis, meaning coverage starts immediately.
- You can use the higher amount between your gross business revenue and employment income to purchase a higher monthly benefit.
- The longest benefit period is to age 70, which is longer than age 65 offered by most other insurance companies.
- Cons:
- The regular occupation period for a total disability is 36 months, which cannot be increased.
- Disabilities caused by mental disorders like depression, anxiety, stress, or burnout are excluded from the illness policy. Subjective conditions like chronic pain and chronic fatigue syndrome are also not covered.
- Soft tissue injuries like carpal tunnel syndrome, bursitis, tendonitis, and disc bulge have restricted benefit periods. For example, the lowest occupation class BB has benefits limited to only 20 days for each period of disability.
Business overhead expense insurance
Whether you are self-employed or a small business owner, you are the main contributor to your business’s success. The revenue you bring to the company is used to pay salaries for staff, rent, lease, mortgage, utilities, and more. But what happens if the revenue stops coming in because of your disability? How will you pay for the fixed business expenses?
That’s where business overhead expense insurance can help. While personal disability insurance provides income replacement for you, business overhead expense insurance does the same for your company. It ensures your business remains viable while you recover from a disability so that there is a business to return to when you can work again.
- Pros:
- Get reimbursement for your monthly business expenses while you can't work due to an injury or illness.
- Unlike personal disability insurance, premiums for business overhead expense insurance are tax-deductible.
- It pays for up to 24 months if your claim lasts that long.
- Cons:
- Because the maximum monthly benefit is $6,000, it may not be enough to cover your business expenses.
- As a reimbursement policy, you may not get paid the amount you bought if you don't have the business expense to show for it.
- It has similar exclusions and limitations as the income replacement product.
Here is a table comparing the products side by side:
Loss of income | Business overhead expense insurance | |
|---|---|---|
Target market | Income replacement guaranteed issue injury coverage with illness as an optional add-on designed for the self-employed and small business owners who may have difficulty qualifying for a traditional disability insurance plan | Business overhead expense guaranteed issue injury coverage with illness as an optional add-on designed for the self-employed and small business owners who may have difficulty qualifying for a traditional disability insurance plan |
Covers | Injury only with illness add-on | |
Definition of disability | Regular occupation for three years | Regular occupation for 24 months |
Age eligibility | 18-69 | |
Occupation classes | Exec, AA, A, B, BB | |
Occupation class upgrades | No | |
Waiting period | 0, 30, or 112 days | 30 days |
Benefit period | Two, five years, to age 70 | 24 months |
Minimum coverage | $1,000 | |
Maximum coverage | $6,000 | |
Medical exam required | Yes, if illness coverage is purchased, above a certain age and amount | |
Premium guarantee | Not guaranteed | |
Expiry | Age 75 | |
Riders | Lifestyle protection enhancer, permanent total disability | None |
How Much Does The Edge Benefits Disability Insurance Cost?
The price of disability insurance depends on many factors, including age, gender, occupation, and benefit amount. The Edge Benefits uses five occupation classes: BB, B, A, AA, and Exec, with the highest risk being BB and the lowest being Exec. An individual working in a BB job will pay more for the same benefits as someone in the Exec occupation class.
Because of these factors, comparing disability insurance premiums can be challenging. Therefore, we will use an individual purchasing $5,000 in monthly benefits working in the highest occupation class, like an engineer, doctor, or lawyer. Below is a table showing how the premiums vary by age and gender.
Age | Male | Female |
|---|---|---|
25 | $96 | $115 |
30 | $130 | $162 |
35 | $130 | $162 |
40 | $180 | $232 |
45 | $180 | $232 |
50 | $274 | $320 |
55 | $274 | $320 |
Verdict: Our The Edge Benefits Disability Insurance Review
Should you buy disability insurance from The Edge Benefits? The answer is it depends. While disability insurance from other insurance companies may have better coverage, fewer exclusions, higher benefits, and more, they may also be harder to qualify for.
Your health, occupation, income history, and more play a role in determining whether an insurance company will accept your application. This may be particularly challenging for the newly self-employed and small business owner who may not have a long history of earnings.
The Edge Benefits takes a simplified approach to underwriting. Because injury coverage is guaranteed issue, the barrier to obtaining disability insurance coverage is much lower. Illness coverage may take longer because an underwriter needs to review your medical questionnaire. Your medical history also determines if you qualify for illness insurance.
- Pros:
- No medical exam not only means you will get your policy issued quicker, but it also benefits people who want to avoid getting a blood test.
- You can receive your policy documents electronically, meaning no paperwork to file away.
- Get your living benefit solutions by buying all the coverage you need with one simple electronic application. This includes critical illness insurance and health and dental insurance.
- Cons:
- Mental illnesses are a significant cause of disabilities. However, you won't receive any benefits from The Edge Benefits because they are excluded.
- Similarly, the short benefit period for soft tissue injuries severely limits the monthly income you can receive.
- The maximum monthly benefit of $6,000 may not provide sufficient income replacement for high-income earners.
How Do You Sign Up For The Edge Benefits Disability Insurance?
If you want to sign up for The Edge Benefits disability coverage, the first step is to obtain a quote from its website. Simply input your date of birth, gender, occupation, and income to determine the premium for the monthly benefit you want.
However, to move beyond the quote and apply, you must go through its network of over 25,000 licensed insurance advisors across Canada. The application process is straightforward if you only want injury coverage. If you also want to get illness coverage, an underwriter will review your answers to the medical questionnaire for approval.
You can either pay for the injury coverage and have it begin immediately or wait for approval of the illness coverage and have them both start at the same time. The choice is up to you.
Need The Edge Benefits Disability Insurance Quote?
Did you know that one in three Canadians will become disabled for 90 days or longer before they reach age 65? Although we don’t expect it to happen to us, statistics show otherwise. Therefore, a contingency plan for an injury or illness is paramount to protecting your financial plan.
And a long-term disability insurance policy is the best way for you to do so. Whether with The Edge Benefits Inc or another insurance company, we will find a disability policy that works for you when you can’t.
Besides disability insurance, you should consider critical illness insurance and a health and dental plan for complete living benefit solutions, especially if you are self-employed or a small business owner. Contact us at info@briansoinsurance.com or 604-928-1628 and find out how we can help you find the right insurance solutions.
Get Your Disability Insurance Quote Now
While we make every effort to keep our site updated, please be aware that timely information on this page, such as quote estimates, or pertinent details about companies, may only be accurate as of its last edit day. Brian So Insurance and its representatives do not give legal or tax advice. Please consult your own legal or tax adviser. This post is a brief summary for indicative purposes only. It does not include all terms, conditions, limitations, exclusions, and other provisions of the policies described, some of which may be material to the policy selection. Please refer to the actual policy documents for complete details which can be provided upon request. In case of any discrepancy, the language in the actual policy documents will prevail. A.M. Best financial strength ratings displayed are not a warranty of a company’s financial strength and ability to meet its obligations to policyholders.
