As humans, we protect the things we love and value. We watch over our children and our families, we insure our cars and our homes. But, many of us overlook safeguarding our ability to earn an income. What would happen if you suddenly lost your income? What would you do if you could no longer work and provide for your family? Fortunately, Life, Disability and Income insurance exists for this very reason. It can serve as an income replacement should you ever become disabled and unable to earn.
Your Likelihood of Experiencing a Disability
You might feel that it’s not worth it to have Life, Disability and Income insurance because you feel the chances of experiencing a disability are low. Unfortunately, the chances are higher than you think. As of 2017, one in five Canadians were estimated to have a disability that affected their daily lives. The chances of becoming disabled also increase as you age.
The Cost of Lost Income
Statistics show that persons with disabilities are underemployed, with only 59% of working-age adults with disabilities being employed compared to around 80% of those without disabilities. Therefore, if you become disabled but can still work, your chances of finding employment are much less.
If, on the other hand, you were to become disabled to the point that you cannot work, you lose your entire income that you and your family depend on. In Canada, the average annual income is $54,000 as of 2021. Losing just one year of that income can be catastrophic to a family. However, over a 25-30 year career, that’s $1.3-1.6 million in lost income. That’s a serious amount of money for a family.
It’s clear that the income that could be lost from becoming disabled and unable to work is major. It’s not something most families can afford. Plus, there’s added costs of caring for a person with a disability and extra medical expenses from equipment and medications, etc.
Income Replacement Through Disability Insurance
Fortunately, Life, Disability and Income insurance exists for this very reason. It can help your family maintain the lifestyle they’re accustomed to. Life, Disability and Income insurance is insurance that works when you’re not able to. It provides for your family when you can’t. It’s a worthy investment because it allows your family to continue living without financial worry. This insurance also provides the money to help you pay for critical medical expenses, as well as essentials like groceries and your mortgage or rent.
Life, Disability and Income Insurance vs. Disability Insurance Through Work
It’s true that some employers in Canada offer disability coverage. However, it might provide the level of coverage you need to replace your income and maintain your lifestyle. Plus, some employers might only offer either disability or critical illness insurance. It’s important not to confuse the two and to know which you have. Talk to your employer to ensure you understand your coverage through work.
With LDI insurance, you’ll receive a non-taxable monthly benefit comparable to your current income should you lose your income due to involuntary job loss, accident, illness or loss of life. It’ll enable you and your family to continue living your existing lifestyle. For the price of a streaming service subscription, you can protect your family’s future and guarantee they will always be financially secure. That’s the power of Life, Disability and Income insurance.