Most Canadians often don’t realize that they have already obtained the most valuable asset they will ever receive in their lives after entering the workforce. That is the value of their future income. As young adults, we invest so much time and money into the value of our future incomes, but we don’t do much to protect it.
We utilize insurance to protect. We use it to protect the most important assets, whether it be our home, our cars, or maybe even our latest electronics purchase. But what often goes unprotected is our ability to work. After all, not many assets will pay you tens of thousands, maybe even hundreds of thousands of dollars per year. But yet why would we be much more inclined to purchase the extended warranty on a Television versus the “extended warranty” on your ability to work and receive an income.
Well, it may be for a multitude of reasons, but the first thing that likely comes to our mind is, I won’t need disability insurance; I am healthy. It is human nature always to assume you will be healthy. However, statistics tell a very different story. According to Statistics Canada, over 6.2 million Canadians live with a disability, which is over 20% of our population or a 1 in 5 chance that someone you know lives with a disability. Regardless of how healthy you are today, we are all human, and our health can change instantly.
The other typical argument is that you may already have a disability offered through your employer. However, most disability policies provided through your employer will not be enough to live off of. It is a great start, but most Canadians require an additional disability insurance top-up to ensure that their families’ current and future needs are met in case of a disability.
As financial planners, we are always looking ahead to help anyone achieve their retirement goals. However, we also know that our lives don’t usually go according to plan. That’s why utilizing a tool like disability insurance can help ensure you can still achieve your financial goals even if life has other plans. Speak with your advisor today to ensure that your greatest asset in life is appropriately covered.