Blue Cross Disability Insurance Review

Your bills are unlikely to stop even if your paycheck does. So, if you are dependent on your job for your financial well-being, you should consider taking out disability insurance.

If an illness or injury ever prevents you from working, your disability insurance plan will pay a fixed monthly benefit based on your pre-disability income. You can use it to maintain your standard of living or pay off a mortgage, without dipping into your savings.

Most insurance companies provide disability insurance coverage in Canada, with Blue Cross being one of the more respected names. This article reviews its disability insurance products in detail, including coverage options, key features, pros and cons, and more.

Who is Blue Cross?

Federally-licensed and made up of a federation of regional not-for-profit insurance providers, Blue Cross has a presence in each province across Canada. It is owned by six shareholders: Pacific Blue Cross, Manitoba Blue Cross, Albera Blue Cross, Medavie Blue Cross, Saskatchewan Blue Cross, and Blue Cross Canassurance.

Blue cross is a major player in the health, dental, life, and travel insurance markets. It offers four competitively-priced disability insurance solutions.

Our Blue Cross Disability Insurance Review

When it comes to disability insurance, Blue Cross is right up there with the very best providers in Canada.

Check out Blue Cross’s pros and cons and key features of its various disability plans to make an informed decision regarding whether it’s the best disability insurance company for you.

What Disability Insurance plans does Blue Cross Offer?

Blue Cross offers the following four disability insurance plans: ‍

1. The Comprehensive Blue Vision Plan

Available to people between ages 16 to 59, the Comprehensive Plan offers monthly disability benefits up to $10,000. Waiting period options include 0 (for accident-only coverage), 14, 30, 60, 90, 120 days. The plan pays benefits up to age 65, but you can opt for a shorter benefit period (2 or 5 years) if you want.

Blue Cross offers several riders with this plan, including, but not limited to, the following:

• Automatic benefit increase: If selected, the automatic benefit rider increases your monthly disability benefit amount by a fixed percentage at renewal, provided you are not yet 55 years old.
• Partial disability: You will receive partial benefits if an illness or injury limits your ability to work but doesn’t cause total disability.
• Increase in benefit: Your monthly benefit will increase by 25% if you are unable to perform two or more activities of daily living due to total disability.
• Waiver of premium: In the event of total disability, Blue Cross will waive off your premium payments for as long as you remain totally disabled, until the expiry of the benefit period.

The Comprehensive Plan is designed for self-employed, business owners, and others who do not have access to group disability insurance. You may be asked to undergo a medical exam to prove eligibility.

2. The Monthly Indemnity Plan

With this plan, you can buy up to $2,000 of monthly disability insurance coverage. This plan is geared toward those who are not eligible for a traditional disability insurance plan, including seasonal workers, students, retirees, people with hazardous occupations, and part-time workers.

3. The Mortgage Plan

This is a unique plan in the sense that the benefit payments can be used only to cover mortgage payments. The monthly benefit amount is capped at $6,000 and paid for either 2 years or until your mortgage is paid off.

4. The Express Plan

If you can’t qualify for a medically underwritten disability insurance plan, the Express Plan might be right for you. Applying for this coverage is easy, as no medical exam is required, and you just need to answer a few simple health questions. It pays up to $1,000 a month for 12 months to help you mitigate the financial downside of a disability.

Why get Blue Cross disability insurance?

Blue Cross disability insurance provides a regular stream of income if you can’t work due to illness or injury. It can help you:

• Maintain your lifestyle even if you can’t earn a paycheck or earn considerably less than your pre-disability income
• Pay down your mortgage and other debts
• Cover daily living expenses and monthly bills
• Defray medical expenses not covered by your health insurance, such as in-home care

How to apply for Blue Cross disability insurance

To apply for Blue Cross disability insurance, go to their website, choose your province, and call their contact number for your region.

You can also work with an independent life insurance brokerage like Dundas Life. We help you to shop the market and compare quotes from dozens of top Canadian insurance companies.

How much does Blue Cross Disability Insurance cost?

The amount you’ll pay for Blue Cross disability insurance depends on several factors, including:

• Whether your plan is an individual or a group plan
• The amount of coverage you opt for
• The waiting period
• Your age and health
• Your occupation

Generally speaking, group disability insurance plans have lower premiums than individual plans. Likewise, the cost of coverage is less for younger and healthier applicants. For example, a 30-year-old non-smoker will receive a better rate than a 50-year-old person who smokes or has one or more pre-existing conditions, all other things being equal.

On the other hand, choosing a longer waiting period can lower your monthly insurance cost. What you do for a living also impacts your premium rate. Hazardous occupations, such as working with heavy equipment, pay higher premiums for disability insurance than someone who sits at a desk all day long.

Conclusion

Blue Cross offers four disability insurance plans, with the maximum monthly benefit being $10,000. Whether you are a full-time worker, part-time worker, self-employed, business owner, or seasonal worker, Blue Cross can be a good option.

Non-medical disability insurance coverage is also available for those with pre-existing conditions or hazardous jobs.

An independent insurance broker like Dundas Life can help you pick the right plan and tailor it to suit your needs and profile. Book a call with one of our advisors today.

Frequently Asked Questions

Does Blue Cross Disability Insurance offer partial disability benefits?

Yes, Blue Cross Disability Insurance offers the partial disability benefit rider. However, since the insurer offers multiple disability insurance solutions, read the product brochure before signing up to confirm what is included and what is not.

A partial disability benefit rider lets you collect disability benefits if your disability allows you to perform some, but not all, of your job duties full-time or part-time. It’s a smart idea for everyone who buys disability insurance to get partial disability, particularly those whose income depends on the number of hours worked.

Can I cancel my Blue Cross Disability Insurance policy if I no longer need it?

You can cancel your policy any time, but whether you will receive a premium refund or not upon cancellation depends on the terms and conditions of your disability insurance contract.‍

Are there any waiting periods before I can start receiving benefits from Blue Cross Disability Insurance?

Yes, Blue Cross Disability Insurance often has a waiting period before you become eligible for benefits. The waiting period can range from a few days to several months. ‍

Does Blue Cross Disability Insurance offer any additional support or resources for policyholders?

As a Blue Cross disability insurance policyholder, you will have access to healthcare networks and programs such as vocational training and rehabilitation training.