What is your most important asset? Your house? No. Your car? No. Your investments? Probably not.
So what is your most important asset? Your ability to work. If you are sick or injured and cannot do your job, the issue quickly becomes urgent.
So, how to manage this risk?
Do you insure your house? Sure. What about your car? Of course. Do you minimize risk to your investments? Probably Yes.
Insuring your ability to make a steady income is crucial. If you cannot work, you are in big trouble.
I was having a coffee today with a new colleague who advises on employee benefits. With no prompting from me, he stated early in our chat that Disability Insurance is the core of any benefits program. Life insurance is important, health insurance is also important, even here in Canada. Other coverages have their place, but only Disability Insurance is crucial.
I was so pleased to hear him say this, since I have been preaching the same message to my friends, colleagues and clients for years.
Getting the right Disability coverage is not without pitfalls, and getting good advice is important. There are important questions to ask, and decisions to be made, and tax considerations can have a big impact on the design of the plan.
Managing financial risk has been a hot topic in the last few years. Getting Disability insurance right is one way of managing one of the most essential elements of financial health.