Jonathan Mercier

By Jonathan Mercier

December 19, 2018

Financial Security

Feeling greater peace of mind during a time of disability

When disability strikes, it rarely gives advance warning. Disability often occurs suddenly, turning your life upside down and shaking up your daily routine and that of your loved ones. As insensitive as it might seem, your financial institution or creditors are unlikely to extend any indulgence. Rather, they will continue to remind you each month of your financial commitments toward them.

Disability and income

Disability unfortunately involves a decrease in income, since disability insurance provides less than 70% of your salary. Actually, it is a lifeline at best. It won’t help you get back on solid ground. Disability insurance is reassuring, but it is not a solution in itself.

Disability generally results in an increase in expenses resulting from medical expenses and services to address our inability to attend to certain tasks (housework, home care, etc.). In addition, you’re continuing to receive your regular monthly bills. You might say to yourself that it can’t happen to you, but that is only wishful thinking, and there could be painful consequences when misfortune comes knocking.

Sadly, most of us are not prepared to adequately deal with this possibility. Most Canadians have a very limited ability to save money.

Statistics Canada disclosed, earlier this year, that Canadian households owe $1.69 for every dollar of disposable income. Few Canadians are equipped to handle finances with peace of mind during a period of disability.

Speak with your Financial Security Advisor

One of the tasks that your financial security advisor is able to perform is presenting the options for securing your situation in the event of disability. Although it is unpleasant to imagine worst-case scenarios, they nevertheless are a part of life.

You need to find a different way of compensating for foregone wages during disability to avoid jeopardizing your financial situation. Other options are available to protect your assets and lifestyle. It’s important therefore to have a good grasp of your current situation and the repercussions that disability would have on your finances.

A number of solutions are available to provide protection for an array of loans (mortgage, personal, commercial, etc.) and credit. Whatever types of loans you have, the payments alone can account for a big part of your budget, so protecting them with specialized insurance can make all the difference in case of disability. And, to focus on recovery, you need peace of mind.

Your financial security advisor has powerful tools to prevent financial troubles from occurring when your financial health is threatened by disability. With the right tools, you can look forward to a worry-free convalescence and focus on getting back on your feet.


Note: This article is intended for information purposes only and should not be construed as legal, financial, tax or other advice. The circumstances or factors may vary depending on your individual situation. Before taking action, we encourage you to consult a professional. La Capitale may not be held liable for any consequences arising from any decision taken based on the content presented in this article.


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