1. I work at a desk, I'm not going to get disabled
1 in 3 Canadians aged 30 to 64 will experience a period of disability at some point in their career. Disability isn’t just linked to injury either. Mental illness like depression or anxiety can be just as debilitating. Chronic illnesses like diabetes, cancer, or other health problems can also disable you.
2. I can get help from the government
The government will only pay benefits for total, permanent disability. But even a temporary period of disability can be a serious financial drain. The government won’t provide benefits for partial disability (able to do some jobs), or for disability it doesn’t deem permanent.
3. I already have disability insurance with my group insurance plan
Be sure to carefully read your contract (or ask your insurance broker to do it with you).
Many plans provide for a maximum amount of insurance benefits, after which you are expected to manage on your own. This amount may be much lower than your salary, and your living expenses may have gone up to cover the costs associated with your disability.
You should compare the cost of topping up your group plan with the cost of supplementing what you have with a personal policy to give you enough coverage.
4. Disability insurance doesn’t come cheap
Disability insurance is more expensive than life insurance, but the likelihood of you needing it is factored into the cost. Do the math, and get a quote. Bankruptcy is also expensive.
5. I’ve got an emergency fund, so I don’t need disability insurance
It’s good that you have an emergency fund, but it may not be enough in the event of long-term disability lasting 6 months or more. You can save money if you take a disability policy that only pays out if you’re disabled for longer than a certain period – like when you expect your emergency savings would be depleted.
Want to know more?
Schedule an appointment with a Life Insurance Ottawa advisor to review your current disability insurance or discuss your options.