Article Licenses: DL, unknown
Compliant content provided by Adviceon® Media for educational purposes only.
Disability insurance (DI) can be purchased from a life insurance company to cover up to 80% of your regular income (or more) in the event you become disabled. This coverage is referred to as “income replacement” insurance.
If you work for a corporation, your employer may offer a group plan with short-term disability (DI) coverage. Examine it to determine the coverage period and to ensure it meets at least 60% of your current income for longer than three months.
Additional DI can be purchased (and owned privately) to extend the period of income payment, and increment payments to the increasing cost of living. Some policies actually increase your paycheques according to the consumer price index (CPI).
If self-employed If you have dependents it is important to ensure that you have income replacement insurance to pay your expenses until age 65. It is also wise to take care of your own needs if you are single.
Consider the following questions as to where the money might come from if you were unable to earn a living for a month, a year or forever.
How would withdrawing part or all of your retirement savings and/or money on deposit at the bank to use as income when convalescing, affect your retirement?
All articles are a legal copyright of Adviceon®Media.
The particulars contained herein were obtained from sources which we believe are reliable, but are not guaranteed by us and may be incomplete. This website is not deemed to be used as a solicitation in a jurisdiction where this representative is not registered. This content is not intended to provide specific personalized advice, including, without limitation, investment, insurance, financial, legal, accounting or tax advice; and any reference to facts and data provided are from various sources believed to be reliable, but we cannot guarantee they are complete or accurate; and it is intended primarily for Canadian residents only, and the information contained herein is subject to change without notice. References in this Web site to third party goods or services should not be regarded as an endorsement, offer or solicitation of these or any goods or services. Always consult an appropriate professional regarding your particular circumstances before making any financial decision.
Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investment funds, including segregated fund investments. Please read the fund summary information folder prospectus before investing. Mutual Funds and/or Segregated Funds may not be guaranteed, their market value changes daily and past performance is not indicative of future results. The publisher does not guarantee the accuracy and will not be held liable in any way for any error, or omission, or any financial decision. Talk to your advisor before making any financial decision. A description of the key features of the applicable individual variable annuity contract or segregated fund is contained in the Information Folder. Any amount that is allocated to a segregated fund is invested at the risk of the contract holder and may increase or decrease in value. Product features are subject to change.