Disability Insurance

Disability Insurance Can Keep One Disaster From Causing Another

It seems every day we hear about people whose life trajectories change due to illness or injury, but we may think “Those things happen to other people, but not to me.” The truth is, when it comes to health and livelihood, no one should rely on such illusions. Serious sickness or an accident can strike anyone, anytime, bringing everyday life to a standstill – and halting paychecks, too. That is a dangerous scenario considering how many families have a hard time saving for a rainy day.

No one likes to think about the possibility of serious illness or injury. Unfortunately, accidents and illnesses happen, so it’s worthwhile being prepared. In 2022, 27 % of Canadians aged 15 and over, or 8.0 million people, had at least one disability. If you were one of those, would you still be able to pay your bills? That’s where disability insurance for self-employed workers and business owners comes in. It helps you protect your income, lifestyle, and, in some cases, your business. And it’s especially important for self-employed people who don’t have access to a group plan through their employer. 

Disability insurance is designed to provide an income if you sustain a serious illness or injury due to which you can’t work. It can allow you and your family to pay your bills and maintain your lifestyle during a difficult period. Your monthly premium will depend on a few factors such as your profession, the type of coverage you want, how much income you want replaced if you can’t work, and more. 

COMMON CAUSES OF DISABILITY

Surprisingly, just eight per cent of disabilities are caused by injuries due to workplace mishaps or car accidents. These other health issues are more common:

• Mental health disorders: From clinical depression to substance abuse, issues with mental health are a common reason people need time off work.
• Cancers: Treatment may make it difficult or impossible to work for a period of time.
• Cardiovascular diseases: Heart disease, heart attack, and stroke can all require time off for treatment.
• Musculoskeletal diseases: Arthritis, for example, can cause joint pain, mobility issues, and weakness that turn certain types of employment into a struggle.

YOUR MOST VALUABLE ASSET
You may have a home, a car, or an investment portfolio, but none of those things is your most valuable asset. It’s actually your ability to make a living. If you’re 35 and have an annual income of $72,000, you have the potential to make $3,160,994.63 over the next 30 years, assuming a modest 2.5 per cent salary increase each year. This is what Disability Insurance is designed to protect. When a disability lasts longer than 90 days, it can typically continue for two to three years. Could you pay your bills for that length of time without your usual income?

A MUST HAVE FOR SELF-EMPLOYED PEOPLE
That’s because as a self-employed person :

• You don’t have protection from an employer’s group insurance plan.
• You may have fixed operating costs, such as monthly rent for an office space, that put extra pressure on your finances.
• You are responsible for your clients or your customers. If you can’t work for several months, business may go elsewhere, which could have long-term effects on your income.

Purchasing disability insurance can offer some relief in knowing that you’ll have financial support to deal with these issues.
Moreover, some disability insurance policies can help you get back to work faster by providing these supports:

• Work conditioning (support as you return to work gradually)
• Work-site modification
• Transferable skills analysis (if you can’t go back to your old career)
• Job search assistance
• Assistive devices (such as wheelchairs, hearing aids, and prostheses)
• Dependant care (if you need care for your kids or your parents, so you can go to a rehab program).