Protecting Your Greatest Asset: The Power of Disability Insurance

When asked, "What is your most valuable asset?", many Canadians instinctively think of their homes, cars, or investment portfolios. While these are certainly important, they pale in comparison to one critical asset that often goes overlooked—your ability to earn an income. Without this, none of those other assets would be possible.

Let’s challenge the way you view your financial security. Your home, car, or investments are indeed valuable, but they all depend on one thing: your capacity to generate income. It’s this ability that enables you to pay your mortgage, maintain your lifestyle, and build your financial future. Without a steady income, you risk losing it all.

The Unexpected Risk: What Happens When Income Stops?

Imagine for a moment: what would you do if, due to an unexpected illness or injury, you could no longer work? The reality is that life can change in an instant, and for many Canadians, it has. According to Statistics Canada, over 3.8 million working-age Canadians between the ages of 15 and 64 identify as having some form of disability. That’s nearly 14% of the population—a significant portion who may face challenges in earning an income.

While we all hope it won’t happen to us, the truth is that a disability could strike at any time, leaving you unable to work and earn the income you rely on. This is where Disability Insurance steps in—it’s a safety net designed to protect what truly matters: your financial stability.

Debunking Common Myths: Why Savings Alone Aren’t Enough

In the event of a disability, most people instinctively turn to their savings as a solution. However, this approach may not be as practical as it seems. Let's break down why:

• If you diligently save 5% of your income each year, just six months of a total disability could easily deplete a decade’s worth of savings. That’s ten years of careful budgeting and sacrifice, gone in half a year.
• Borrowing from a bank? Lenders are much less likely to approve loans for someone who is unable to work. The risk is simply too high for them.
• Relying on your spouse’s income might seem like a viable plan, but could a single paycheck cover all your expenses? The harsh reality is that you may have to make difficult compromises, like downsizing your home or adjusting your lifestyle.
• Selling assets like your home or investments might seem like a last resort, but you may not get a fair market price, especially under pressure. Plus, selling investments can trigger taxes and erode your long-term financial growth.

Clearly, these are not sustainable solutions. So, what’s the answer?

The Solution: How Disability Insurance Protects Your Income

This is where Disability Insurance becomes a game-changer. An individual disability insurance policy is specifically designed to replace a significant portion of your income if you are unable to work due to illness or injury. It offers peace of mind by ensuring that you can maintain your standard of living even if the unexpected happens.

Here’s why Disability Insurance is a smart financial move:

1. Income Continuity: It ensures that you continue to receive a stream of income, allowing you to cover essential expenses like your mortgage, groceries, utilities, and more.
2. Flexibility: Unlike employer-provided plans, an individual policy can be customized to fit your unique needs, providing tailored protection for your lifestyle.
3. Asset Protection: With Disability Insurance in place, you won’t have to dip into your hard-earned savings or liquidate assets to make ends meet. This preserves your long-term financial goals.
4. Peace of Mind: Knowing that your income is safeguarded means you can focus on recovery without the added stress of financial worries.

Realizing Your True Asset Value: Your Ability to Earn

Your ability to earn an income is not just a source of money—it’s the foundation of everything you own and everything you aspire to achieve. It supports your family, pays for your home, and funds your dreams. Without it, all other assets are at risk.

Investing in Disability Insurance is not just about protecting your paycheck; it’s about protecting your future, your family, and your peace of mind. It’s a safeguard that allows you to live confidently, knowing that even if life takes an unexpected turn, you’re prepared.

Final Thoughts

We understand that no one likes to think about worst-case scenarios, but planning for the unexpected is one of the smartest financial decisions you can make. Disability Insurance is more than just a policy—it’s a commitment to safeguarding your livelihood.

If you’d like to learn more about how Disability Insurance can protect your income, contact Garrett Agencies. We’re here to help you secure your greatest asset: your ability to earn.

^{Sources: Statistics Canada, Canadian Survey on Disability, 2017-2022.}