Disability Insurance: Why your ability to work is your greatest asset
THUNDER BAY – Business – Illness, chronic pain, injury are just a few of the reasons why you may not be able to show up for work for a significant period of time. There is no investment than will provide greater returns for most of us than our working income, which is why it is our greatest asset. Without an ability to work and generate income, many of us would not be able to have the type of lifestyle we want. Consider that one in three people will become unable to work by the time they reach the age of 65, and you can see why protecting yourself is important.
Disability insurance can provide you with financial security, and peace of mind, should you be unable to provide for yourself and your family.
What is disability insurance and when do you need it?
Disability insurance typically will replace a portion of your income, usually between 50% and 70% should you no longer be able to work due to illness or injury. The reason why they are not higher is there would be little to no incentive to return to work if it were 100%. When is the best time to get this type of coverage? The answer is before you need it. For those of you who don’t have it, it may be worth looking into what it would cost. Many employers provide it as a part of their benefits package as well, but it’s also worth looking into topping it up if possible.
What options do I have within the coverage?
Within the coverage, you have options to include protection against inflation, future earnings protection, future savings protector, and return of premium which allows for 50% of what you’ve paid into it returned to you every so many years should you never use it. All of these depend on your individual needs and wants.
The Bottom Line
We protect our assets like our cars, house, and other assets but not always our ability to work which helps us pay for those things. What are your options? Use your savings, liquidate your assets, surrender your RRSPs, apply for a personal loan or depend on your spouse’s income? Should you have any other questions about disability insurance, do not hesitate to contact me by email or phone.
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Anthony M. Talarico
Financial Security & Investment Representative
W: 807-343-4788 C: 807-472-6092