Congratulations! You’ve completed your post-secondary education, found yourself a great job with room for advancement, and found a great place to live in the city. Hopefully you’ve started to plan for your long-term future by efficiently using your TFSA and RRSP, and maybe even investing a little on the side. Life seems to be going great, and nothing can stop you.

You must be expecting a “but”, and you’re right. What if something happened to you, you get sick or injured and can no longer work?

Let us paint a picture; you are a first year marketing associate, earning $60,000 a year with plenty of room for growth. You have a beautiful one bedroom apartment in the heart of the city, a new car, and all the freedom in the world. One day, on your way into the office, you slip on some ice and hit your head. The doctor tells you, you have a severe concussion and possible brain damage, and you will be unable to return to work for at least a year.

Now you are in a situation where your expenses are still coming in, but you have no income to pay them. Hopefully you have your savings to get you through a few months, maybe even a year, but what if your recovery takes longer than expected? 38% of disability claims that last over 3 months will last 5 years or longer[1]. Would you be willing to move back in with your family? Would they be willing to have you move back in and potentially sacrifice part of the retirement they have been working their whole life towards?

The good news, is that you are now thinking about the “what ifs”. There is a way of avoiding the stress of the situation, so you can focus on recovering and maintaining your financial lifestyle. By reallocating 1% to 5% of your income you can be provided a monthly benefit equal to approximately 66% of your income tax free in the event you become sick or injured.

Not only can you ensure that you can keep the beautiful apartment, and the car to get you to and from your doctor’s appointments, you will even be able to increase the benefit amount. As long as you are working, you can have the ability to increase the benefit amount based on the amount of money you are making. So as your salary increases, and your lifestyle cost increases, you will still be able to protect it.

For more information please contact us.


[1] Council for Disability Awareness

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