Questions to Ask Yourself

Something to consider

Do I need disability insurance? You may have never asked yourself this question. But it may be a question worth exploring if you consider that one of your most valuable assets could be seriously impacted if you were to become disabled  your ability to work and earn an income.

Take a few minutes to respond to the following:

1. When do you expect to retire?

Something to consider  the further out in the future this date, the longer your financial well-being is exposed to the risk of disability.

2. What percentage of your income comes from investments?

Something to consider  the lower this percentage, the more dependent you are on your ability to work and earn a living.

3. How long could you pay the bills and maintain your lifestyle on savings alone?

Something to consider  the shorter this period, the more vulnerable you will be if disability strikes. Also keep in mind that withdrawals from an RRSP are subject to income tax.

4. If you become disabled, will your spouse and children still need financial support?

To what degree to your children, spouse or parents depend on you financially?

5. How much money do you think the government will provide if you become disabled?

Something to consider  the major forms of government disability benefits are: Employment Insurance, Workers’ Compensation and the Canada/Quebec Pension Plan. All three have eligibility and benefit limitations.

6. How much money could you borrow, if you became disabled?

Something to consider  from your lender’s perspective, if you aren’t working, will they want to loan you money?

7. If you disabled and unable to work, would your spouse be able to earn enough income to make up the shortfall?

Something to consider  even when this is possible (by working extra hours for example) many spouses may instead want to reduce the amount of time at work to be able to help their partner.

8. How much disability insurance do you already own and how comprehensive is it?

Something to consider  even when this is possible (by working extra hours for example) many spouses may instead want to reduce the amount of time at work to be able to help their partner.

Ask yourself … Did any of the above questions, or more importantly your answers, raise more questions for you?

If yes, you may have a need for individual disability insurance protection.

While no one plans to become disabled…. be prepared with an income replacement plan.

Contact Ken MacCoy for a NO obligation review of your Disability Insurance needs.