Who would pay your bills if you couldn’t?
If you’re not sure whether you need Disability Insurance coverage, have a look at the questions below. Ask yourself each one, answering honestly, and then read on.
- Do I have any expensive pastimes?
- Could I afford to take a one-year vacation?
- Do my mortgage payments consume a significant part of my income?
- Is my investment income less than half of my total income?
- Will my children need financial assistance for their educations?
- Would I be reluctant to sell my home in the event of financial difficulty?
- Would my family have trouble paying for all my living expenses?
Did you answer “Yes” to one or more of the above questions? If so, you should seriously consider Disability Insurance. In fact, anyone who works for a living needs Disability Insurance, but the coverage is particularly important if you are self-employed. Simply put, Disability Insurance pays you a percentage of your income during the period that you are unable to work.
Why Should I Buy This Coverage?
Yes, that’s right – everyone who works should have Disability Insurance. Statistics show that 10 per cent of Canadians are disabled, and the majority of those are of working age (between 14 and 65 years old). If the coverage is so important, though, why do relatively few Canadians use it to protect themselves and their families? The answer is that the majority of people simply aren’t aware of the coverage and its significance.
You already understand the value of life insurance: if you are the primary income earner and you pass away unexpectedly, your family will receive payment to help make up the financial shortfall. But what if you are alive but disabled – and therefore unable to work? In that case, your family still faces a financial shortfall but will receive NO compensation under your Life Insurance Policy.
In addition to being unable to provide your family with the income they’re accustomed to, you may actually become a serious financial burden for your family (medical bills, drugs, treatments, etc.). This situation can cause severe difficulties for your loved ones as they struggle to adapt to their unfortunate new circumstances.
With Disability Insurance, however, you can significantly reduce the financial impact of an unexpected injury, illness or other life-altering event.