Name: Insurance for your paycheque
Uploaded: 2023-03-13
Duration: 3 min 15 s
Description: Insurance for your paycheque Help protect your most valuable asset with disability insurance canada.

Insurance for your paycheque Help protect your most valuable asset with disability insurance canada. 

Scene 1

Insurance for your
paycheque
Help protect your most valuable
asset with disability insurance
canada

Are you protecting your most valuable asset? What would you say if someone asked you, "What's your most valuable asset?" It might be your home, or maybe even your car. But have you considered that it might be your ability to earn a living? Over your lifetime, that's worth far more than your house or car. While it's very likely you have insurance to protect both your home and car, do you have anything to cover your income if the unexpected strikes? Let's look at how disability insurance can help protect your paycheque. $33,4641 Average price of a new vehicle in Canada $498,9432 Average value of a Canadian home Average earnings over a 30-year career. 

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Are you protecting your
most valuable asset?
What would you say if someone asked you, "What's your most
valuable asset?"
It might be your home, or maybe even your car. But have you
considered that it might be your ability to earn a living?
Over your lifetime, that's worth far more than your house or
car. While it's very likely you have insurance to protect both
your home and car, do you have anything to cover your income
if the unexpected strikes?
Let's look at how disability insurance can help protect your
paycheque.
$33,4641
Average price of
a new vehicle in
Canada
$498,9432
Average value of
a Canadian home
Average earnings
over a 30-year
career

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Disabilities are a fact of life O 1 in 3 the odds you'll become disabled for 90 days or more before age 65.' Three quarters of our claims are for musculoskeletal injuries (like fractures, dislocations and sprains) and nervous disorders (like depression and anxiety).' o 5.75 years the average length of a disability, if it lasts longer than 90 days•e 2018. • ective claim. m" by • (CIA) 86—92 T.b'e & 2012 — Could you cover day-to-day expenses if you became disabled? Mortgage, rent or property tax Savings plan contributions Insurance premiums Utilities - electricity, heat, water, etc. Clothing Groceries & household items Family related expenses Auto expenses Loans and credit cards Telephone, internet, etc.. 

Scene 4

Disabilities are
a fact of life
O
1 in 3
the odds you'll become disabled for
90 days or more before age 65.'
Three quarters
of our claims are for musculoskeletal injuries
(like fractures, dislocations and sprains) and
nervous disorders (like depression
and anxiety).'
o
5.75 years
the average length of a disability,
if it lasts longer than 90 days•e
2018.
• ective claim.
m" by
• (CIA) 86—92
T.b'e & 2012 —
Could you cover day-to-day
expenses if you became
disabled?
Mortgage, rent or property tax Savings
plan contributions Insurance
premiums
Utilities - electricity, heat, water, etc.
Clothing
Groceries & household items Family
related expenses Auto expenses
Loans and credit cards Telephone,
internet, etc.

But these day-to-day expenses aren't the only ones you may face. You might also have added costs like medication, home modifications or childcare. It could be difficult to maintain your lifestyle for a long time if you couldn't work because of an illness or injury. There are options available - but are they realistic? Your spouse If your spouse needs to reduce time at work or give up their job to take care of you, it could be difficult to maintain your lifestyle on a reduced income Vor no income at allW. RRSP and savings You could withdraw from your RRSP or investment savings (if you have them). However, you'd have to pay taxes to do so, and it could mean you won't have enough money for your retirement. Or you may have to delay retirement. Loans and credit If you really need cash to pay the bills, these are a short-term option. However, it's likely they'll leave you further in debt. Plus, it can be a challenge to get a loan normally; getting one when you can't work might be impossible. Govemment There are a couple of options here, but each have limits: •Canada Pension Plan or Quebec Pension Plan: You must have a severe and prolonged disability that stops you from working any job. •Employment Insurance: Offers limited benefits •Workers' Compensation: Only covers on-the-job disabilities Sell your assets Would you be willing to quickly sell assets to meet your needs? What impact will the sale of these assets have on your lifestyle? Employer coverage Disability insurance coverage through your workplace could help, but it may not provide enough coverage. Plus, if you switch jobs, your coverage almost certainly won't come with you.. 

Scene 5

But these day-to-day expenses aren't the only ones you may
face. You might also have added costs like medication, home
modifications or childcare.
It could be difficult to maintain your lifestyle for a long time
if you couldn't work because of an illness or injury.
There are options available - but are they realistic?
Your spouse
If your spouse needs to reduce time at work or give up their job to take care of you, it could be
difficult to maintain your lifestyle on a reduced income Vor no income at allW.
RRSP and savings
You could withdraw from your RRSP or investment savings (if you have them). However, you'd
have to pay taxes to do so, and it could mean you won't have enough money for your
retirement. Or you may have to delay retirement.
Loans and credit
If you really need cash to pay the bills, these are a short-term option. However, it's likely they'll
leave you further in debt. Plus, it can be a challenge to get a loan normally; getting one when
you can't work might be impossible.
Govemment
There are a couple of options here, but each have limits:
•Canada Pension Plan or Quebec Pension Plan: You must have a severe and prolonged disability
that stops you from working any job.
•Employment Insurance: Offers limited benefits
•Workers' Compensation: Only covers on-the-job disabilities
Sell your assets
Would you be willing to quickly sell assets to meet your needs? What impact will the sale of
these assets have on your lifestyle?
Employer coverage
Disability insurance coverage through your workplace could help, but it may not provide
enough coverage. Plus, if you switch jobs, your coverage almost certainly won't come with you.

Disability insurance works when you can't. If an illness or accident keeps you from working, disability insurance can give you a monthly income to help pay for ongoing expenses. It replaces a percentage of your earnings over the short or long term. * • In witk monthly period date,. 

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Disability insurance works when
you can't. If an illness or accident
keeps you from working, disability
insurance can give you a monthly
income to help pay for ongoing
expenses. It replaces a percentage
of your earnings over the short or
long term. *
• In witk monthly period date,

How much of your income do you need to get by? Total monthly expenses Less: Current monthly disability coverage (group, individual, if any) Your income gap (disability insurance needed) The following chart shows the maximum amount you could receive tax-free each month if you faced a disability. Annual insurable S35,ooo S50,ooo $100,000 S120,ooo S140,ooo $200,000 S300,ooo S500,ooo Monthly benefit S2,200 S2,975 55,200 5,925 S6,625 $8,550 SII,350 S16,050 S25,ooo p will specific Sæ .pp.ey_. 

Scene 7

How much of your income do you need to get by?
Total monthly expenses
Less: Current monthly
disability coverage
(group, individual, if
any)
Your income gap
(disability insurance needed)
The following chart shows the maximum amount you
could receive tax-free each month if you faced a
disability.
Annual
insurable
S35,ooo
S50,ooo
$100,000
S120,ooo
S140,ooo
$200,000
S300,ooo
S500,ooo
Monthly benefit
S2,200
S2,975
55,200
5,925
S6,625
$8,550
SII,350
S16,050
S25,ooo
p will specific
Sæ .pp.ey_

For more information about how disability insurance may t your needs, talk to your advisor today. canada In Quebec, advisor refers to a nancial security advisor for individual insurance and segregated fund policies; and to a group insurance/annuity plans advisor for group products. The information provided is for general information only. It is not to be relied upon as legal or tax advice. You are encouraged to consult with your professional tax and/or legal advisor about your particular circumstances. C.W.0'.'20. 

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For more information about how
disability insurance may t your
needs, talk to your advisor
today.
canada
In Quebec, advisor refers to a nancial security advisor for individual
insurance and segregated fund policies; and to a group insurance/annuity
plans advisor for group products.
The information provided is for general information only. It is not to be relied
upon as legal or tax advice. You are encouraged to consult with your
professional tax and/or legal advisor about your particular circumstances.
C.W.0'.'20