"I'm careful, so I won't get hurt." - Many Canadians believe that most disabilities are caused by a single traumatic event resulting from neglect, but common chronic illnesses are 6 times more likely than accidents to cause a disability.
Disability insurance helps protect your most important asset – your ability to earn an income – by providing you with a regular monthly income if a disability prevents you from working and earning a living.
Is it important?
Suppose you don't have disability insurance and a few days of sick leave turn into an absence of weeks, months or years. How would you pay your bills? Do you have enough savings to meet your financial responsibilities? If so, what happens when they run out and your next mortgage payment is due? It is certainly not pleasant to consider such a situation, but that is why you would be well advised to add disability insurance to your financial plan.
Things to consider
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Some policies pay benefits if you are unable to perform the tasks of your regular job, while others will only pay them if you are unable to do any other job.
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Make sure you include as indexation coverage rider to your policy otherwise, you lose purchasing power over the years as your benefits amount stay the same if you don't have it.
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The amount of coverage you purchase should allow you to meet your needs and those of your family up to your age of 65.
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Your employer disability insurance ends when you leave your job. Having your own insurance gives you more flexibility, especially since it can complement the coverage offered by the employer.
LOSS OF EARNINGS IN CASE OF DISABILITY BEFORE AGE 65
Sources: Table A FROM Commissioners Individual Disability
PROTECT YOUR MOST PRECIOUS ASSET :
YOUR ABILITY TO EARN AN INCOME!
Sources: Organisation mondiale de la santé- Disease and injury country estimates