Disability insurance
Did you know that one in four Canadians are unable to cover an unexpected expense of $500?
People often overlook disability insurance, not always convinced of its value. Yet most Canadians do not have an adequate emergency fund to cover their expenses in case of unforeseen events such as an accident or illness. But how would a lack of income affect them and their families?
Start a discussion with your clients
Talking to your clients about a real-life experience can be useful in making them aware of the financial consequences that would ensue in the event of a disability. You can also advise them to prepare a list of their recurring expenses or share some compelling statistics with them:
- The ratio of Canadian household debt to disposable income rose to 183.3% at the end of 2022, a 13% increase compared to 2021.
- Although the inflation rate has fallen to 3.4% in Canada, experts are expecting another interest rate hike in July.
- Rising housing prices across the country, particularly in major urban centres, are making home ownership more difficult for the average Canadian. Moreover, the Bank of Canada raised its policy rate to 4.75% in June.
- Disability is commonplace: 33% of Canadians will experience a period of disability in their lifetime1.
What would become of your clients’ financial commitments and lifestyle if they were struck by a disability and unable to work? Don’t hesitate to raise the question with them and explain how disability insurance could spare them a host of financial woes.
iA Financial Group offers a comprehensive range of disability insurance products:
- Superior Program
- Acci-Jet Program
- Universal loan insurance
- Disability Credit Rider or Supplementary Income Rider
1 CLHIA, A Guide to Disability Insurance
