Don't underestimate the need for Disability Insurance
People often underestimate the need for Disability insurance and for any type of insurance for that matter until they are in need of it or have seen firsthand what benefit such a policy can provide. When I first started in the business, I myself never thought that I would need it because I was young and felt invincible, nothing could ever happen to me. I have however since changed my tune, I have seen the power in protecting the quality of life for some of my clients. The reality is that, whether you’re a 20 year old or a 50 year old it does not matter, a disability can happen at any age.
Another notable reason that many have given me in rejecting the need for coverage is that the say “disability insurance does not pay out”, which of course is not true. Disability Insurance has given the insurance industry a bad rap due to the fact that disability claims are riddled with fraudulent or unsubstantiated claims. Some people's claims are denied for many different reasons and you can bet they talk about it. Because bad claims exist, this of course makes the claim process a lot tougher than for other types of coverage.
There are many excuses and myths that are associated with Disability Insurance but below are the common reasons that I have come across in my business as to why people avoid disability insurance.
- I will never need it, I can use my savings
- Disability Insurance is too expensive
- I am too young to need it
- Disability insurance does not pay out.
You may be one of the lucky ones that will never suffer a disability but what if you do? Would you have to give up your house? What lifestyle changes would you have to make? We do not know what the future holds and unfortunately a disability can strike anyone at any time.
According to Statistics Canada there is an estimated 3.8 million adult Canadians that where limited in their daily activities due to a disability in 2012. That is quite a lot of people. If you do not have individual disability coverage or have no coverage as part of your benefit plan at work it is strongly advised that you do think about protecting yourself. If you do already have a plan it is prudent to review it to ensure it is still sufficient in meeting your changing needs.
About the Author
Neil Lecky is a Life Insurance Advisor, Group Employee Benefit Specialist and an Investment Funds Advisor with Alliance Financial Group. He is also a Branch Manager and Investment Funds Advisor with Investia Financial Services Inc., a mutual fund dealer.