disability income protection

Why is an ability to earn an income your most valuable asset?

 Protecting one’s ability to earn an income is tantamount to financial security. Imagine if you had an injury or illness, and were unable to earn income for several months, a number of years, or in the most challenging of scenarios, until you reached your retirement – be that age 65 or perhaps 70. 

While most all of us could weather not having income for a few months, going much beyond that time frame could cause one to have to spend down savings, investments, and possibly tax-advantaged retirement accounts.
There are options to help you protect your earned income, and these plans are available in essentially two formats. These being short term disability protection, which typically begins replacing your income after 30 days up to perhaps one year [although shorter elimination periods are available], and long term disability income protection that typically begins replacing your income after 90 days, and can continue paying you until age 65, 67, or even age 70. When structured properly and paid for personally, these monies can be received on a tax free basis – although we encourage all our clients to speak with their tax professional regarding such matters.
In addition to a core benefit, there are numerous riders that offer payment on a pro-rated basis for partial disability [in the event you can only work part time], future purchase options which provide you the opportunity to purchase additional income protection simply with proof of earnings [and no proof of insurability], inflation protection so that if you are disabled, and collecting a monthly benefit, your payments will increase over time by a factor typically of 3% or 6% each year, and there are other riders too. Beyond your core coverage and various riders, we believe what is most important is to secure disability income protection with an own occupation rating, which offers income protection based upon your profession, and thus if you were unable to work in your original chosen field of expertise, you could be entitled to receive your full monthly benefit, even though you might now find yourself at work in another chosen field of employment.
At LTCi Marketplace we tend to shy away from statistics; however, depending upon which resource or website you might look at, you’ll find that upwards of 35% of individuals find themselves unable to work at some point during their careers.

We encourage you to call us, and explore whether disability income protection may make sense for you, or as we have done for other clients, to secure this valuable protection for children, or grandchildren – as a way to help protect families in the event an accident or illness strikes a grown child or grandchild, and they are unable to be actively at work for some period of time.   
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