Protect My Income

By on February 25, 2013

Protect My Income

What can I do if I cannot bring home an income due to accident or disease?

Most people buy life or mortgage insurance to protect their families and never think about what happens if they cannot work due to illness or accident.

No one expects a disability or disease to happen to them. The reality is that it happens every day. If you think about your own family, you probably have had a serious illness or accident somewhere in the past two generations. They can, and do, happen.

No need to worry. There are many solutions to protect you and your family:

    • Disability insurance provides tax free income while you cannot work because of illness or injury. This type of insurance is usually purchased by people in their working years who are working as an employee or business owner.
    • Long Term Care insurance provides a tax free income to people who need help with at least two of the six activities of daily living. These include: Dressing, moving, continence, toileting, bathing and feeding. These policies also cover mental incapacity. The great aspect of these policies is that they last for life and can be paid off in as little as 20 years. Many people buy these policies to supplement their income, while on claim, during their working years, or for their parents, to plan for future home nursing and facility costs.
Did you know that if you need long-term home nursing services, in Alberta

  • You pay your own bills.
  • Your family pays bills you can not afford.
  • Government may help if your family needs more help with your bills.
  • Critical Illness insurance provides a lump sum of cash upon diagnosis of one of 25 different illnesses. The most common claims are for Heart Attack and Cancer. Upon survival of 31 days, after diagnosis, the lump sum is paid and can be used as you wish. People use it for:
* Modifications to their home
* Paying bills
* Travel for treatment not available in Canada
* Medications not covered by your insurer or by Alberta Health.

What about our government plans? There are some great programs available in Canada. However, these programs are failing to protect those who need them the most.

  • Employment Insurance for Disabilities: Only pays for 15 weeks of disability. The amount paid is 55% of your income to a maximum of about $457 / week and is taxable.
  • CPP for disability: Only pays a very small amount to those who qualify with a serious illness that will require long term or permanent care. Even then, it can take two, or more, years for a claim to be paid.
  • Government paid nursing facilities: These are very limited. When accepting the government funds, your family member can be placed anywhere in your province where a bed is available. The need is increasing and fewer beds are available.