Going Broke to Stay Afloat
While the title may seem at odds, this is a very real picture for some. No I’m not talking about job loss, or uncontrolled spending habits – but about a situation that is very real to some and a reality for others down the road.
The reality is an injury or sickness, could be caused by either an accident or an uncontrollable event. Are your finances protected?
While the statistics and numbers show the younger you are, the greater the probability you have in becoming disabled during your working career. In fact, the risk is still high into your mid 50’s. Further, a disability could be defined as an accident or illness.
An accident could be from anything, such as work related or non-work related such as skiing. Illnesses could result from many things, such as recovering from a heart attack, cancer, stroke or even mental illness such as stress or burnout. For the average length of disability after 90 days is 2.9 years. Do you have 2.9 years of income ‘stuffed away’ in the bank, a safe or your mattress?
This is where the title “going broke to stay afloat” comes into play. An uncontrollable event like these would cause this situation if your finances are not protected. In fact, your greatest asset is your ability to earn an income. How do you protect it? To put this into another perspective – you protect your house, your car, your jewellery and maybe your big screen TV – but what about your income? How do you protect that?
My experience has shown for individuals who do become disabled – your income will be diminished quickly. So what’s next? You dip into your savings, your retirement plan, or even the equity in your house. And now you’re going broke to stay afloat. A vicious cycle, but once it gets going when does it stop? For, you are looking to keep a roof over your head, or even a lifestyle your desire. Why should you let an uncontrollable event prevent you from something like this from happening?
This is why disability protection is important to not only have, but to know what you have. It is a compliment to your risk management plan, in protecting your finances. For, let me ask you a question – when do most people check out what they have in disability protection……? When it is too late and something has happened. My apologies, but when it comes to this point I cannot help you get the coverage you require. It is too late.
When reviewing always ensure within your disability protection you have the definitions that not only meet your lifestyle, but your replacement income is protected to the best it can be. Finally, explore and investigate that you are not only working with a confident, licensed and qualified individual who is looking out for your best interest, but answers all your questions and understands you and your needs. Not theirs.
Helping you protect your financial health and wealth, if you have any questions don’t hesitate to reach out.