Your most important asset is your ability to earn an income. You work hard to pay your monthly living expenses, including mortgage payments and saving for retirement or a child’s education. If you are unable to work due to illness or an injury, the financial implications can be enormous to you and the people who rely on your income. Putting an income protection plan in place can protect you and your family from financial hardship if you were unable to work for an extended period of time. It can provide you a means to help cover your expenses. Depending upon your policy, coverage can range from weeks to your entire working life.
If you work and earn money, disability insurance should be something you consider.
The cost of disability insurance is dependent on a number of factors; your age, gender, health, occupation and hobbies, benefit amount and period, elimination period and definition of disability. Generally, an individual long term disability insurance policy can cost approximately 1% to 3% of your annual income. It is best to review your income protection plan with your advisor every year and whenever you have any major life changes (eg. getting married, having a baby, buying a house, receiving inheritance, getting a new job) to ensure you can protect yourself and your family in the event an injury or illness prevents you from working.