Grateful for disability insurance

In debt and your health fails?

Today is Monday December 14, 2020. The year of the pandemic. The year where so many things seem to have gone wrong.

Yet today on my Facebook feed, a memory came up from 2 years ago. Part of it read as follows and concerns things I had learned up to that point:

2) Disability insurance. Don’t know how this 2 income household would manage without it. Seriously, if you don’t have it, get it while you can. Someday you’ll more than likely need it. And it gives me peace of mind and less stress so I can concentrate on healing

3) Group health benefits. If the doctor gives you the wrong drugs and has to switch meds, the pharmacy doesn’t give you a refund for unused meds. You’ll be paying for both! Individual health insurance can help as long as you get it while you’re healthy

The other entries on the feed were soppy but appreciative of all those around me.

My purpose of this entry is to let you know that I have personally benefited from disability insurance and from group insurance. It reminded me that disability insurance and health insurance gave me such peace of mind when I was unable to work.

You see, back in November 2018 I had an operation. It was a full out hysterectomy and I have a scar to remind me that I am now healthy…thank goodness. But I was facing an uncertain situation. When all was said and done and the biopsy complete, the organ was considered precancerous.

That leads me to think about critical illness insurance. Some of my doctors thought I had stage 0 or stage 1 uterine cancer. Many of my symptoms pointed in that direction. I’m happy they were wrong. And I’m VERY happy to still be paying my premiums on my critical illness policies (yes, I have more than one).

But what would have happened had they not been wrong? What if I had had large amount of debt? I just read a statistic that Canadians owe a $1.75 of debt for every $1.00 of disposable income in the first quarter of 2020 according to moneysense.ca. In the second quarter it fell to $1.58. That’s a good thing. But…WOW! That still means we’re carrying a lot of debt. Disability insurance will help with the everyday needs. But what about that debt factor?

The debt to income ratio is “a measure of how much debt a household is carrying relative to its disposable income – that is, the money you have available to spend or save, after taxes and other non-discretionary expenses, such as EI and CPP contributions, are made” (moneysense.ca)

Bottom line, debt to income ratio at these excessive levels make households financially vulnerable. If you can’t work because of your health, people and their families can suffer beyond their health. Whether you’re young or middle age, pre-retirement or a senior, having critical illness AND disability insurance is definitely something that should be in your arsenal of protection products