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Disability Insurance: Concussions Scare Me
When I read about high profile tech start up leader John Ruffolo and his cycling accident due to the jack-knifed tractor, I reflected on how my husband likes to cycle long distances and take my minor son with him (they clocked a 72 km ride this summer). It scares me as the roads are dangerous.
According to CBC News: “The 54-year-old says that he's had several surgeries since then and that while his "head was unaffected," it's unlikely he will regain the use of his legs.” (Source:
https://www.cbc.ca/news/canada/toronto/john-ruffolo-accident-1.5716550)
Thankfully, no concussion for this gentleman.
Ryan and Lachlan pre-cycle
In 2020, I found myself working with several people that have experienced a concussion.
Every single one of my encounters was with someone in their 50’s or 60’s.
There are 2 minor children in this scenario, age 7 and age 3. In 20 years, the eldest will have graduated post-secondary, and the younger will be finishing. The cost today is about $20,000 a year per child for a 4-year degree (tuition, books, food, technology, rent, parking pass / public transportation, fun spending).
- One fainted in a hotel reception lobby and hit their head on the ceramic floor.
- One fell while ice skating with their spouse.
- Another was rear-ended in a car accident.
- The fourth lost their balance at home, fell and hit their head on the coffee table.
- The fifth was picking up something from a parking lot and the car door caught the wind.
The impact on these people’s lives is profound. Two were barely retired prior to the concussion. Two took early retirement due to the concussion but realistically they would have worked for another 5 years or more. The last is currently on disability because they had at least another 10 years to go before retirement.
These people suffer headaches and migraines. Some cannot read a book nor work on a computer for any length of time due to nausea. They now listen to podcasts and audio stories. Others are sight and sound sensitive and wear heavy sunglasses or headphones.
These people worked in well-paid, high level positions from administrators/executives, salespeople as well as technology/medical specialists.
For anyone working at the time of unexpected injury, there is an immediate negative impact on your ability to earn employment income. Employment income stops, and if there isn’t a disability policy in place, people immediately go to their life savings. If you’re drawing on your RRSP or TFSA accounts 10 or 15 years early, rather than contributing to them, you’re draining your retirement funds and that will have a negative impact on your entire financial future.
If you do not have disability insurance, you need it.
Especially if you do not have group coverage.
True disability insurance will pay you, not the mortgage. It goes far beyond the basics offered by your mortgage lender. If you had to go on claim, you will have absolute freedom of choice on how to utilize the funds while healing. It can be used to pay the mortgage, the grocery bill and property taxes. You can pay down credit cards and use it to pay for lifestyle adjustment devices that you need. There are no rules on what to spend the income replacement money on.
When it comes to insurance, people are more concerned with dying than surviving. I think that they have it backwards.
Term life insurance is so inexpensive because the carriers know that statistically, you are not likely to die, especially if you’re under age 70.
Disability is much more costly on a dollar per $1000 of coverage. Why? Statistically, you’re more likely to be incapacitated and survive than pass away. The younger you are, the higher the risk.
My carriers tell me that mental health claims are much of what they see besides the expected other injury/illness claims (think back problems and heart attacks).
I fully expect that Mr. John Ruffolo had an extensive disability policy. If so, by claim standards, he will now be considered totally disabled and a tax-free disability payment will be sent to him.
Call our office today to find out how a disability insurance policy will protect your life’s savings and provide tax-free cash flow monthly: Toll free at:
1-866-550-6932.
We are a fully digital office and can assist you while you are in the comfort of your own home. New graduates in certain professions (medical, accounting, legal, engineering etc.) can also receive a lifetime discount on disability premiums within the first year of practice.
Taivi Tayler has been in the financial services industry for over 20 years. She specializes in estate planning and risk management solutions that are integrated into comprehensive wealth management concepts. Tax minimization is at the forefront of every client relationship while developing suitable retirement and financial planning strategies. Her primary focus is client financial literacy and she uses simple illustrations to teach retirees, business owners and high-income earners how to recognize current and future financial challenges while demonstrating that they have choice in how to better manage their wealth.
Learn more about how Taivi can make life's biggest financial decisions easy to understand at https://www.taylerinsurance.com/about.
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