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DISABILITY
INSURANCE
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Don't let disability or critical illness destroy your lifestyle.
Your ability to work
is your most valuable asset. Every day you get up and go to work to support
your lifestyle and provide for yourself and your family.
However, ask yourself this - what would happen if one day you lost your
ability to earn an income because of injury or sickness? Life wouldn't
be all that simple anymore.
What are the odds?
If you're like most, you assume that disability will never happen. It's something that happens to others - never to you. Look again!
In an average year, here are the odds of:
| Death: | 1 in 117 people die |
| Fire: | 1 in 219 homes catch fire |
| Car accident: | 1 in 18 cars is involved in a serious accident |
| Disability: | 1 in 14 people is disabled |
The probability of
disability is higher than you might expect...
...and it can last a long time.
The chances of disability lasting 90 days or longer before age 65
Two
financial realities of a long-term disability:
Reality #1:
Less money coming in, more going out - a dangerous combination of events. Your income plummets because you cannot work, and your expense grow because now, in addition to everyday costs of living, you must also cover medical expenses and other bills related directly to the disability itself.
Reality #2:
A disability can be financially draining over the long haul. Even at your present income - without factoring in raises or bonuses - think about how much money you'd lose if you suffered a disability that lasted until you were 65.
Options for replacing lost income:
There really aren't many ways to replace the income you lose when you became disabled. This table presents a few ideas, observations and key questions raised by each. How comfortable are you with these options?
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OPTIONS
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OBSERVATIONS
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QUESTIONS
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| Savings | It takes long time to build up a significant savings reserve. | Hoe quickly would your savings be depleted if you had to live off them? |
| Non-liquid investments | Some have value beyond their monetary worth. | Would you get
full value for them? And could you ever replace them? |
| Loans | Borrowing isn't always easy - or possible. | Would you qualify? How and when could you pay back a loan? |
| Other household sources of income | Your spouse's income will have to suffice. | Could you maintain
your family's lifestyle? What about emotional burden? |
| Canada/Quebec Pension Plan Disability Benefit | To qualify, you must sustain a severe and indefinite mental or physical disability and be unable to work at any occupation. | Would you be among the applicants who never collect a cent? |
| Group Long-Term Disability Insurance | A good start, but if you are highly compensated, it may not cover enough of your income. | Will your policy replace enough income, and for a long time period, to ensure your lifestyle? |
| Individual Disability Insurance | A sensible option that gives you the control, peace of mind and comprehensive protection you and your family deserve. | What are you waiting for? |
Here's what you can expect to earn by age 65:
