Disability Happens! Are you Prepared?

Every now and then we receive a the call from clients wanting to cancel their disability insurance – something that was very important to them at the time of purchasing their home but for whatever reasons now, they felt that they could let go of it. This is often a disappointing call, but we pride ourselves on customer service, so we ask the questions to find answers that led the client to this decision… in most cases the policy stayed in force and 3 clients in particular, over the last year, have claimed on those policies, much to their financial relief – I don’t think that those people will be tempted to let their policies go again, but why would they want to?

Unfortunately, we also have clients who do not think that disability insurance is necessary for a few reasons:

1. “It won’t happen to me”

2. I have group coverage through work

3. It’s too expensive

Please take a moment to think about the following considerations why personal disability insurance is, in fact, important:

1. Lifestyle: what does your current standard of living cost and how do you feel about having to cut back?

2. Family Responsibilities: how many people depend on your income?

3. Employment Flexibility: would you be willing and able to change jobs?

4. Debts: who would make your mortgage/rent and car loan payments if your pay cheque stopped? How long would your savings last?

5. Financial Resources: how dependent are you on your pay cheque? Do you have savings or investments that give you an income? How long would they realistically last?

6. Dreams: what would happen to your future plans for your family, yourself or your retirement if your disability lasted long enough to wipe out your savings?