DISABILITY / SALARY / DEBTS
DISABILITY INSURANCE
Thanks to an exciting job, you can own a house, a car, spoil our loved ones, enjoy thrilling hobbies and have a full, happy and healthy lifestyle. Yet, while performing our workday, the unexpected can happen. An injury, an accident, an illness, a nervous disorder, etc., always occurs without warning. To prevent any financial troubles that may result from such problems...
There are 3 types of
INSURANCES:
WHY DISABILITY INSURANCE?
DEBT INSURANCE
In Canada, 1 in 3 workers have a disability period of 90 days or more before age 65 *. This may be due to common problems such as stress, exhaustion or back pain.
On average, the duration of a disability is 2.6 years **, which could have a significant impact on many areas of your life if you do not have a replacement income.
If you were unable to work or earn income, could you continue to pay off your mortgage, other debts, groceries, etc.? Studies show that almost 50% of bankruptcies and foreclosures result from a disability***.
*Statistics Canada, Canadian Disability Survey, 2012.
**Table of Disabilities, 1985
***Robertson, Christopher T., Egelhof, Richard and Hoke, Michael, Get Sick, Get Out: The Medical Causes of Home Mortgage Foreclosures. Health Matrix: Journal of Law-Medicine, Vol. 18, No. 65, 2008
This type of insurance pays you a monthly tax-free amount to deal with the payment of your debts when you are unable to work due to an illness or an accident.
In addition, this protection is not granted for a specific loan, but rather for all eligible loans at the same time. Thus, all your loans are covered under a single contract at the time of the claim.
This protection can adapt to your financial obligations over the years. For example, if you repay your mortgage and you take out a long-term lease on a new car or a loan to renovate your home, the monthly payment of these debts will be covered up to the expected monthly amount.
THE DISABILITY INSURANCE OFFERED BY THE BANKS
This type of insurance pays you a monthly amount, tax-free, to deal with the monthly payment of your debt when you are unable to work because of an illness or an accident.
The protection is granted for a specific loan, for example, your mortgage or even a car. It’s very costly when compared to what insurance companies have to offer.
The duration of the protection is harmonized with the term of your payments.
It offers no flexibility because the contract is tied to a specific loan offered by a financial credit institution.
SALARY OR INCOME INSURANCE
Do not let an accident or illness compromise your most valuable asset; your ability to earn income.
Think about it, it’s your income that allows you to meet your financial obligations (car, home, food, education fees, permits, electricity, retirement savings, etc.) and offers you the standard of living of your choice (boat, golf, travel, etc.).
If you cannot work because of a disability, how long can you maintain your standard of living? Would you have to withdraw money from your savings or buy back shares of your investments or sell off your assets?
This protection was designed to cope with losing the ability to earn income if you are suddenly disabled. You can concentrate on your recovery, knowing that your expenses will be covered by your salary insurance.
It adapts to the specific needs of self-employed or autonomous workers, business owners and employees with or without group insurance.
