What happens when you lose your income?
Your lifestyle is based on your income. A loss of income would prevent you from keeping up with your financial commitments, like paying your rent and paying off your loans (line of credit, student loan, etc.). You could tighten your belt for some regular expenses like your groceries, phone bill and going out. But your rent and loan payments won’t wait.
A temporary loss of income can also impact your retirement planning. Pausing your contributions to your retirement savings or dipping into your savings to keep up with your expenses could significantly set back your retirement savings goals.
And finally, a disability often involves extra expenses. Some of the unexpected costs you might have include expenses related to a hospital stay, medications, physiotherapy, osteopathy or psychology.
Disability credit insurance
If an accident or an illness prevents you from working, leading to a loss of income, disability credit insurance will help you cover your financial obligations and maintain your quality of life. In the event of a short- or long-term disability, you will be asked to provide proof of loan and/or your rental contract to be eligible for benefits. With the help of these monthly benefit payments, you’ll be able to concentrate on recovery.
Do the math
Add up all your expenses and financial obligations.
Here are some monthly expenses you might need to include:
- Rent payments
- Car payments
- Payments for student loans, a line of credit, etc.
Considering your every-day expensive, would you be able to keep making your payments if you suddenly had no income for six months?
Disability credit insurance can give you peace of mind and security in the event of a disability that prevents you from working.