Pathways Your Greatest Asset: Your Ability to Work

Most people manage health risk in the form of Life and Critical Illness insurance. However, many people who are not part of a group benefits plan may not have adequate Disability insurance, if any at all.

Why is Protecting Your Ability to Work with Disability Insurance?

Because, for most, your ability to earn income is the greatest asset you have. A person earning $50,000 a year at age 35 has the earning power of almost $2 million over the next 30 years. Missing out on this income means missing out on everything you would normally use that income for. lIfestyle expenses, vacations, homes, cars, retirement savings, etc. Government programs can provide some relief, but they rarely replace enough income to support a normal lifestyle. Workers Compensation: Only covers workplace accidents Many companies do not have WSIB Employment Insurance: Only pays for 15 weeks Maximum payout is approximately $413/week Canada Pension Plan Very strict definition of disability Payments are less than $1,200 a month and are taxable

What about Governments Programs?

3% is All it Takes
Assume you take 3% of your take-home pay and use it to purchase Disability insurance. With Disability Insurance While Youre Healthy If an illness or injury prevents you from earning an income You earn 97% of Your Income Your disability insurance pays you a monthly benefit With No Disability Insurance You earn 100% of Your Income

*Based on a male business owner, age 40, non-smoker, $50K income, occupation class 2A, purchasing Manulife Financial Venture Series, to age 65 benefit period, to age 65 regular occupation period, 90 day elimination period, plus partial disability benefits to age 65.

How Much Are Your Potentially Worth?

Accumulation of your potential income, assuming that your original income will increase by 2% per year

Age 20 25 30 35 40 45 50 55 60

$2,000 $1,725,425 $1,449,648 $1,199,867 $973,634 $768,727 $583,137 $415,042 $262,793 $124,897

Original Monthly Income $3,000 $4,000 $5,000 $2,588,138 $3,450,850 $4,313,563 $2,174,471 $2,899,295 $3,624,119 $1,799,801 $2,399,735 $2,999,669 $1,460,451 $1,947,268 $2,434,085 $1,153,091 $1,537,454 $1,921,818 $874,705 $1,166,274 $1,457,842 $622,563 $830,084 $1,037,605 $394,190 $525,587 $656,983 $187,345 $249,794 $312,242

$10,000 $8,627,125 $7,248,238 $5,999,337 $4,868,170 $3,843,636 $2,915,684 $2,075,210 $1,313,967 $624,485

For more information on Disability Insurance, contact your advisor John Sabourin, BA, B.Comm, FLMI, CFP
(519) 675-1177 | 1-888-327-5777 | John@selectpath.ca