Disability insurance can provide you with financial security by replacing a portion of your earnings when an accident or illness causes you to become disabled and unable to work or earn an income.
Accidents and illnesses are a fact of life. They could happen to anyone at any time. Did you know that
1 in 3 people, on average, will be disabled for 90 days or longer at least once before age 65.
The average length of a disability that lasts over 90 days is 2.9 years.
Both personal and business disability insurance solutions are available that offer flexibility and features to help bridge the gap between income and expenses during a disability.
Why do you need disability insurance?
The lifestyle you enjoy, your children’s college education, and your retirement savings all depend on your ability to earn a living. If you suddenly had less money coming in—plus additional money going out to cover bills related to your disability—where would the money come from to replace your lost income?
Even if you already have disability insurance through your employer, it may not be enough. Plus, if you change jobs, your employer-sponsored disability insurance will most likely end with your employment. What's more, disability benefits under the Canada Pension Plan (CPP) and Quebec Pension Plan (QPP) limit the benefits you can receive.
Also consider the probability of incurring a 90-day or longer total disability prior to age 65 (see chart below). When a disability lasts longer than 90 days, the length of that disability averages between 2.1 and 3.2 years for those age 55 and younger(2).
When you imagine life without your income—and the odds of becoming disabled at some point in life—disability insurance makes sense.
To further understand why Disability Insurance is important to you, please take a look at this great article from Sun Life Financial: What would happen if you couldn't work?