Disability Insurance

Scott McEachern |

It happens more often than we think.

Approximately 1 in 4 of today’s 20 year-olds will become disabled before they retire, according to the US Social Security Administration Fact Sheet. If you’re curious what that chances of becoming disabled are based on your age, job type and a few other attributes, you can look into that at www.disabilitycanhappen.org

Business Owners

If you’re a new entrepreneur, you’re likely the sole income earner in your business. If you become disabled, bills still need to be paid. Think not only about the business expenses, but personal expenses, like your mortgage and groceries, as well.


Could you survive financially for 120 days (4 months) with no paycheque? Is your emergency fund fully funded or would you have to tap into your RRSPs because you didn’t think it could happen to you?

It can happen to anyone

Just last week, while playing soccer, a teammate tore her ACL. She’s on crutches for one month. Depending on your job, you may or may not be able to do your work seated. If her job requires her to stand all day – she might qualify for disability insurance. Disabilities don’t just occur from accidents, either. The majority of disability claims are illness related, where people must take time off work to recover.

Income Protection

Disability insurance should be put in place to provide an income in the event you are sick or injured and cannot perform your job duties to earn an income. Most avoid getting disability insurance because they assume the cost is too high, but just like any other insurance, it can be completely tailored to fit your budget. You can select different waiting periods, different payout periods, and different definitions of qualifying disability.

A lot of insurance agents only talk about life insurance in case of death, and while life insurance is important, disability is much more likely to occur than death (and it’s the reason it’s can be a little more expensive than life insurance).

If you have a job, the risk of losing your income is the biggest risk you face, especially if you currently have no savings!