Life Health Professional forum is the place for positive industry interaction and welcomes your professional and informed opinion.

Canadians denying the truth about disability

Notify me of new replies via email
Life Health Professional | 30 Sep 2015, 08:15 AM Agree 0
New survey suggests advisors have a real opportunity to make a difference in the lives of Canadians by simply having “that talk” with clients
  • Ken MacCoy, CHS | 30 Sep 2015, 11:10 AM Agree 0
    A person's biggest asset is their ability to go to work and should be insured first!
    WHY? Because 48% of all mortgage foreclosures are due to disability; only 3% are due to death.
    Yet less than 20% of working Canadians have long-term disability protection.

    Consider these frightening odds:
    1 in 1300 homes will catch fire each year;
    1 in 105 persons will die each year;
    1 in 70 cars will crash each year;
    But, 1 in 4 persons will be disabled each year.

    In 1990 I was have personally disabled. The problem is ... my group LTD coverage didn't kick in until after 4 months, the 120th day.
    That meant depending on Employment Insurance. I had a 2 week waiting period, then 15 weeks of short-term benefits.

    The problem: EI only pays 55% of your income, the current maximum being $524.00 (taxable) a week.
    Could you survive and pay all your bills for 4 months based on 55% of your income?!

    Speaking from experience, we are not indestructible.

    Consider individual Disability Insurance.

    Insure your most precious asset first, your ability to go to work.
  • Brad Jardine | 30 Sep 2015, 12:55 PM Agree 0
    Same old story told over and over again. Let's be realistic-quality Disability and Critical Illness coverage is expensive and hard to get-period. The people who tend to need it the most can seldom afford it. RBC survey was right, but yawn.... I guess the banks are new to the insurance industry and felt compelled to invest some time and money in an unnecessary survey.
  • Ken MacCoy, CHS | 30 Sep 2015, 02:08 PM Agree 0
    Are Disability &/or Critical Insurance premiums expensive? Compared to what?
    If comparing premiums to a new big screen TV or a night on the town; then the answer is NO.

    Injury (only) coverage is available ...for ages 18 to 64 ... for the price of a cup of coffee a day.
    Example: A $1000 non-taxable benefit for injury (only) coverage ranges from an affordable: $8.80 to $34.70 a month depending on occupation. Based on: 30 day waiting period, 3 year regular occupation, 5 year benefit.

    The reality is ... it boils down to priorities. Some coverage is better than 'none' at all.
    And ...I have dozens and dozens of disability and critical illness clients who would agree.
  • Roger McCullagh | 30 Sep 2015, 03:06 PM Agree 0
    As Ken MacCoy said, if we look at the trivial things that we spend money on daily (like coffees, cigarettes, etc) it's not expensive when you're protecting you're ability to continue paying your bills, feeding your family, and keeping your home!

    It's all a matter of value .... if you feel it's worth protecting your ability to continue paying your bills, feeding your family, and paying your mortgage/rent then it's worth the few dollars a day to purchase Disability Insurance
    The alternative is to NOT spend the money on protection and HOPE that nothing happens to you .... and if it does ..... then you face the possibility of not being able to pay your bills, you won't have money to feed your family, and you may lose your home due to the fact that you can't pay your mortgage/rent.

    I feel the 1st alternative is far less costly in the long run!
  • Brad Jardine | 01 Oct 2015, 08:31 AM Agree 0
    We're all preaching to the choir here. We've been dually licensed since 1986, lots of Di & CI on the books and the "talk" is part of each comprehensive planning review with existing and new clients.
    So the topic isn't ignored, in fact, the "it's your biggest asset" mantra always comes up. However, my point was a simple reality check on the likelihood of getting clients over the concept/price hurdle given the multitude of demands on their income (alas and ironically all the more reason it should be insured!).
    Once we get to this stage comes underwriting.... so, if you're on contract, have any incentive based compensation, have virtually any pre-existing ache, pain or condition, have WSIB or group LTD, etc, etc. You know where this is leading-exclusions, declines, coverage reductions, etc.

    And... how many decent carriers are there left now for suitable DI coverage, 3? Not much competition left out there in the marketplace for this product=prices up, coverage down. Unless you have a large "S" on your chest there's not much point in even applying.
    Sad part about "the talk" is always health and lifestyle related first.
    So Ms Client before we get all excited about the concept, coverage, cost/benefits let's see if you could even qualify first. Hang nail in 2008, sore back or knee from the fender bender 3 years ago, same annual contract with no benefit coverage at the same employer for 7 years ...decline, rated, excluded, modified.....
    And don't get me started about actual claim time...helping a disabled client through the claim process becomes a part-time job even after you get past the initial "denied" department.
  • Mike Travers | 08 Oct 2015, 04:33 PM Agree 0
    You bring up a great topic Brad! I've been setting up disability policies for clients for a while now but have no experience in dealing with claims (fortunate for my clients, not good experience for me).

    What's everyone's experience in dealing with claims? Good or bad, would love to hear it.
Post a reply