Naturally, we all like to assume that nothing serious will ever happen to us. Indeed, it’s more common than you think.
- 1 in 4 Canadians will contract heart disease
- Of those diagnosed with heart disease, 1 in 2 is under age of 65.
- 1 in 7 Canadian have a disability
- 1 in 3 working age Canadians will become disabled an unable to work before they turn 65
- If your disability lasts longer than 90 days, the average length will be approximately 3 years from age 35 to age 55
How devastating it would be for being disability and without earning income for 3 years? No matter how successful your career had been to that point, your living expenses and other financial obligations will quickly exhaust your savings and deplete your assets that you worked so hard to build. Obviously, your earning ability is the most value property. Why would you protect your valuable properties like car, home, phone but forget about your earning ability? Protect your earning power upon which everything else depends.
Disability insurance is designed to provide income if you sustain a serious illness or injury. It allows your family to maintain your lifestyle during difficult time. Normally, your employer will provide disability insurance in group benefits, yet it’s only 50-60% of your income, and maximum to $2,500 per month before tax. If you are earning more than $80,000 annual, then it will be a huge loss for you, and it’s obviously not enough for your living expenses. For example, if your annual income is $130,000, and you will only receive $2,500 maximum, which is only 23% of your income. The scenario will be different with your own disability insurance. The benefit you can receive every month can be up to 75% of your salary and it’s tax-free. If you would like to know more about disability insurance, talk to an insurance advisor to have more details and specific plan that match with your situation.