We all think we’re invincible… that nothing would happen to us, right? As an insurance advisor, I’ve seen my share of clients who dismiss protection only to need it and come back hoping they can still get coverage (hint: they usually can’t, at least not right away).

It’s the what-if… I get it. Why spend money you don’t think you can afford to provide protection coverage in case something happens to you… especially when you think nothing ever will.

Life insurance coverage is often the no-brainer… we’re all going to need that at some point. But it’s the disability and critical illness coverage that often leaves people questioning or hesitating to invest in their own protection.

You don’t drive a car around without insurance, do you? Then why would you work without protecting your ability to earn an income?

Don’t put it off til it’s too late…

Let me tell you about John. He was referred to me by one of my clients – he was a single, middle-aged man, with a good job, investment properties, an active social and sports life. He wanted to look at disability insurance because his employer’s benefits program didn’t include it, and being the sole income earner with financial responsibilities he wanted to make sure he was protected. At the time, he had just purchased a third investment property and was busy with renovations, and was going away on vacation. “Not right now… I’ve got too much going on. I’ll be in touch.” Six months later he gets back in touch because he was off work with an injury and wanted to know if he could get the coverage then. Unfortunately, because he wasn’t working due to a disability he wasn’t eligible to get coverage until he was back active at work for a period of time. He’d put off getting coverage only to need it 6 months later… and it wasn’t even a financial reason for him to hesitate. The issue was time. (Note that it takes about an hour to complete an application for coverage)

A similar situation happened with Kathy, who was a client with other protection through me, but her budget wouldn’t allow for disability and critical illness coverage. She was 26, just starting out in her career and didn’t feel that it was a top priority for her at the time. That was, until she needed to go for surgery and be off work for months as a result. A couple of weeks before her scheduled surgery she contacted me to try to put coverage in place, however, she’d waited too long and her leave for the surgery would not be an eligible claim.

You don’t get house insurance while your house is burning down, and you don’t qualify for disability or critical illness insurance protection when you’re about to claim the benefit.

“I can’t afford the coverage I need…”

Insurance protection isn’t an all or nothing game. I tell my clients time and time again that something is better than nothing. Even if you make $40000 a month, wouldn’t it be better to have a $2000 monthly income benefit when you’re not able to work than a $0 monthly income?

“It won’t happen to me…”

Oh, but what if it does? In my 12 year career, I’ve personally seen 6 clients claim on their disability or critical illness benefit. That’s 1 every other year… and I operate a boutique business with a small client-base.

1 in 3 Canadians will become disabled and unable to work for a period of time before they turn 65.

Protect more than just your paycheque

Often times, we dip into our savings or rack up debt (or both), draining the retirement account and every other resource available to compensate for the lost income. Why do that if you don’t have to?

As an employee (and many self-employed) you pay into employment insurance (EI) with your regular deductions from your paycheque to protect your income in the event you’re unemployed or on parental leave. You claim on EI to prevent having to dip into your savings, retirement, or incur debt. Why would you not protect your savings and retirement in the event of injury or illness?

Information is power, so even just looking at your options is a critical first step. Knowing what it costs to have coverage, and what it would cost to NOT have coverage will help you make an informed decision.