Disability Insurance
What Is It?
Disability insurance supports you when you can’t work. It provides tax-free monthly income to help cover expenses if an illness or accident prevents you from working.
Why is it important?
- It’s more common than you might think: Up to 40% of Canadians experience a disability for 90 days or more before reaching age 65.
- Income protection: It offers financial security by replacing part of your income if you can’t work due to a disability.
- Retirement savings protection: It ensures you don’t need to withdraw from your savings during a period of disability, allowing your retirement funds to remain intact and continue to grow.
- Peace of mind: it offers peace of mind knowing that you have a safety net in place for unexpected health issues.
What’s your most valuable asset?
You may think that your home, car, or investment account is your most valuable asset. However, your ability to earn an income over a 30- or 40-year career is truly your greatest asset. Without it, enjoying the lifestyle you value would be difficult. Can you really put a price on this?
How much will you earn in your lifetime?
The chart below illustrates your potential earnings between now and age 65 based on your current income and age, assuming a 3.1% increase each year.
Current Income | ||||||
Current Age | $35,000 | $50,000 | $100,000 | $150,000 | $200,000 | $250,000 |
30 | $2,157,664 | $3,082,378 | $6,164,756 | $9,247,134 | $12,329,511 | $15,411,889 |
40 | $1,292,961 | $1,847,088 | $3,694,175 | $5,541,263 | $7,388,350 | $9,235,438 |
50 | $655,754 | $936,792 | $1,873,584 | $2,810,376 | $3,747,168 | $4,683,961 |