Insurance Products Introduction / Disability Insurance
Disability Insurance
If you lost your ability to earn an income, you could also lose the lifestyle you’ve created for yourself and your family. Many Canadians overlook the need for income replacement insurance in their financial plans. The big mistake is in assuming that the traditional safety nets such as employer/government benefits or personal savings are enough to get you by. However, disability insurance is the only protection that is both comprehensive and portable. A personal plan is designed to help address your needs by providing a source of income that can be counted on during a period of uncertainty.
Do you need Disability Insurance
The following questionnaire can help you think about how your financial future could be affected by a sudden illness or disability.
1 When do you expect to retire?
the further you are from retirement the bigger the risk.
2 To what degree does your family depend on you financially?
How does you disability change their lives?
3 How long could you maintain your current standard of living on savings alone?
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 How much income do you think the government will provide if you become disabled?
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.
5 How much money do you think you could borrow if you became disabled?
Without a source of income loans would be difficult to obtain even with assets.
6 What percentage of your income comes from your investments? The lower this percentage, the more dependent you are on your ability to work and earn a living.
7 If you became disabled and were unable to work, would your spouse be able to generate enough income to make up the shortfall?
Even when this is possible (by working extra hours for example)many spouses 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?
Even when people have disability insurance through their employer, a review of the coverage can reveal that they don’t have enough, or identify potential benefit limitations.
All insurance products offered through yourCFO Wealth Management Inc.
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