DISABILITY INSURANCE

There are different type and sources of disability insurance which make it important to talk to an insurance professional who can advise on the coverage options that best meet an individual’s circumstances and requirement. How much disability insurance should you have? That depends on many things:

• Lifestyle: What does your current standard of living cost and how do you feel about having to cut back?

• Family responsibilities: How many people depend on your income? Are you a single parent or a non-custodial parent with financial responsibilities? Do you have parents or siblings who depend on your income?

• Employment flexibility: Would you be willing and able to change jobs?

• Debts: Who would make your mortgage and car loan payments, if your pay cheque stopped? How long would your savings last?

• Financial resources: How dependent are you on your pay cheque? Do you have savings, or investments that give you an income? How long would they realistically last?

• Dreams: What would happen to your future plans for your family, yourself or your retirement if your disability lasted long enough to wipe out your savings?