Disability Insurance
Disability can strike anyone at any age - by sickness or accident. The studies are clear: the chance of being disabled and unable to work for more than three months before age 65 is between 1 in 4 (women) and 1 in 8. For those under age 35, there is just over a 50% chance of being off work for more than three months (with an average period of two years). We hear people say all the time that they can't afford disability insurance - but 28-year old guys who work construction for a living do break a leg surfing - and aren't covered by WCB. Many young people will earn between 2-3 million dollars between now and age 65. That's a large enough sum to merit spending one work day a month to insure.
For the self-employed: you are a risk-taker. Don’t let that extend to leaving yourself uninsured in case you are unable to work. You have invested education, training, time and money into building a business or practice that is liable to suffer the greatest loss if problems or a crisis occur. Many people take for granted the various safety nets that safeguard our health, welfare and incomes. These programs are not always available to the self-employed individual (such as EI).
What is a major loss? How would you protect yourself against one? You probably have a certain extent of protection already. You insure your home and possessions, your automobile, your business premises, and you may have interruption insurance and liability insurance. In fact, people insure all the things that can be replaced; but there is one thing we cannot replace, and according to insurance statistics, it's the event that is most likely to happen -- the loss of health.
This health and ability to conduct your business is your most important asset without which you cannot use your skills to generate income; and all that you have worked for can be lost.
Can you afford to take a six month holiday starting tomorrow? If so, you are one of the fortunate few who don't necessarily need protection. If not, you probably can’t afford a six month disability either, and that could start at any time. By assessing your ongoing cash needs, we can determine whether it would be possible to pay bills if you were unable to work for three months or longer.
There are many variations of disability plans, and even more variations in the degree of disability a person can suffer. It is important to discuss these differences thoroughly before applying for a disability policy.
