WHY WORRY ABOUT DISABILITY?
Far too many people have the opinion that they are perfectly healthy and the risk of not being able to work due to a sickness or accident is zilch. If only this were true. Throughout the many years of being in this financial planning practice, we have seen couples lose their homes, declare bankruptcy and sometimes lose each other due to the major problems associated with not having income from some source if you are unable to work.
It only takes a second ... to see the need for disability insurance.
- Accidents and illness are a part of life. They can happen to anyone at anytime.
- Your chance of becoming disabled for 90 days or longer, at least once before age 65, is 1 in 3.
- The average length of a disability lasting over 90 days is 2.9 years.
- Can you afford to play these odds? If a disability struck tomorrow, would you be covered?
- Why gamble on your ability to earn an income, when you can help protect it with disability insurance. Disability income is available from three principal sources:
- Individual contracts issued directly by an insurance company such as GWL, Canada Life, Unum, etc. These policies are owned by the individuals. Income from these are normally tax-free. Prices are usually fixed for the length of the contract.
- Group plans such as those offered through employers and association plans. Prices can vary from year to year and most often, will increase annually. These policies are not owned by the individual and can be changed at anytime by the insurance carrier.. Income from these sources may or may not be tax free
- Federal and provincial government plans such as the CPP disability plan (paid through your CPP contributions) - this is taxable income to you! The Ontario gov't has a Ontario Disability Support Program that is not taxable but does not offer much in terms of income protection.