| One of my good friends had all is that is needed to be | | | | recommended to insure from 60% to 65% percent of |
| happy. A good paying job with a mid-size company, a | | | | gross income as insurance benefits are tax free in |
| beautiful wife and two kids in private schools, a | | | | Canada. |
| cottage in the city, and new cars for him and his wife. | | | | The insured can choose a proposed amount or |
| One Saturday afternoon, a few weeks before the | | | | reduce it to his convenience and proceed to the next |
| Christmas holidays, while driving to the mall, he felt | | | | step that is to choose the waiting period and the length |
| extreme pain in his chest. Realizing he must be having | | | | of benefits period. The waiting period can vary from |
| a heart attack, his wife took over the wheel and drove | | | | 14, 30, 60, and 120 days and is the period during which |
| him to the ER. | | | | no benefits are paid following a disability. |
| He had to undergo urgently an open heart surgery. His | | | | The benefits period can be selected from 2 or 5 |
| operation was a success however he had to stop | | | | years or to the age of 65 and can be extended in |
| working for 4 months and then he was only able to | | | | some cases. Logically the longer the waiting period is, |
| get back to work a few days a week. His income | | | | the lower the cost of insurance premium and vice |
| plummeted and the family had to sell some of their | | | | versa the longer the benefits period is the insurance |
| retirement savings in order to pay their mounting debts. | | | | cost is higher. There are many other options to choose |
| They also took of their kid out of private school. The | | | | from depending on the product selected and the |
| psychological impact was tremendous. | | | | service provider. Such options are residual or partial |
| This type of situation can happen to anyone, illness or | | | | disability (more on this in future articles), future |
| accident can have huge impact on one's life and love's | | | | insurability protection, cost of living adjustment, and |
| one life. | | | | more. |
| Can such a situation be prevented? | | | | Some insurance companies will offer to reimburse all |
| Disability insurance or as sometimes referred to salary | | | | premiums at the end of the contract if no claims were |
| or supplementary insurance is a great solution to | | | | made. This option is attractive for independent |
| protect one's income from unpredicted life changing | | | | workers who have dividends to reinvest and wish to |
| events. However it is important to understand the | | | | minimise their company's tax contributions. |
| conditions and limitations in these types of contacts in | | | | Disability insurance is complex and requires a deep |
| order to validate protection is adequate. | | | | analysis for every client. |
| At first, the insured's profession will determine eligibility | | | | People have to become suspicious of one price for all |
| and consequently cost of premiums. For example an | | | | disability insurance which can cover disability in case of |
| electrician because of intense physical work faces | | | | an accident only and has many limitations in both the |
| more risk of disability than an accountant. The insured | | | | waiting and benefits period. |
| person's gross income has to be calculated. It is | | | | |