Disability Insurance

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Insurance for your paycheque

Help protect your most valuable asset with disability insurance

Are you protecting your most valuable asset?

What would you say if someone asked you, “What’s your most valuable asset?” It might be your home, or maybe even your car. But have you considered that it might be your ability to earn a living? Over your lifetime, that’s worth far more than your house or car. While it’s very likely you have insurance to protect both your home and car, do you have anything to cover your income if the unexpected strikes? Let’s look at how disability insurance can help protect your paycheque.

How much will you earn in your lifetime?

Consider your earnings between now and age 65 based on your current income and age.
Current Age$35,000$50,000$100,000$150,000$200,000$250,000
30$2,157,6643,082,378$6,164,756$9,247,134$12,329,511$15,411,889
40$1,292,961$1,847,088$3,694,175$5,541,263$7,388,350$9,235,438
50$655,754$936,792$1,873,584$2,810,376$3,747,168$4,683,961

Total potential earnings to age 65, assuming a 3.1% increase every year.

Over a 30- or 40-year career, your accumulated income is likely to be far more valuable than any other asset you’ll own.

But these day-to-day expenses aren’t the only ones you may face. You might also have added costs like medication, home modifications or childcare.

It could be difficult to maintain your lifestyle for a long time if you couldn’t work because of an illness or injury.
What would you say if someone asked you, “What’s your most valuable asset?” It might be your home, or maybe even your car. But have you considered that it might be your ability to earn a living? Over your lifetime, that’s worth far more than your house or car. While it’s very likely you have insurance to protect both your home and car, do you have anything to cover your income if the unexpected strikes? Let’s look at how disability insurance can help protect your paycheque.

There are options available – but are they realistic?

Your spouse

If your spouse needs to reduce time at work or give up their job to take care of you, it could be difficult to maintain your lifestyle on a reduced income (or no income at all).

RRSP and savings

You could withdraw from your RRSP or investment savings (if you have them). However, you’d have to pay taxes to do so, and it could mean you won’t have enough money for your retirement. Or you may have to delay retirement.

Loans and credit

If you really need cash to pay the bills, these are a short-term option. However, it’s likely they’ll leave you further in debt. Plus, it can be a challenge to get a loan normally; getting one when you can’t work might be impossible.

Government

There are a couple of options here, but each have limits:
• Canada Pension Plan or Quebec Pension Plan: You must have a severe and prolonged disability that stops you from working any job.
• Employment Insurance: Offers limited benefits
• Workers’ Compensation: Only covers on-the-job disabilities

Sell your assets

Would you be willing to quickly sell assets to meet your needs? What impact will the sale of these assets have on your lifestyle?

Employer coverage

Disability insurance coverage through your workplace could help, but it may not provide enough coverage. Plus, if you switch jobs, your coverage almost certainly won’t come with you.

We're here to help!

Your advisor is here to help you understand your needs and goals, help you choose the right insurance option and build a plan that protects you for life as you know it.
For more information about term and permanent life insurance, get in touch with our professionals.
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