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Posted by on Feb 26, 2012 in Ask the Experts, General Interest, Home-based Business, Insurance | 0 comments

Risking huge financial loss

As a small business owner, understanding Health Benefits and Disability Protection for your home business can save you from financial disaster. You probably assume you have disability insurance covered under your partner’s company benefit plan. However, this is not so.


At this time, only your partner has disability insurance through his/her employer. You are covered for drugs, extended health coverage, and possibly dental coverage as long as your partner has the company benefit plan.

As long as you are healthy and able to work, you can generate your own income. However, if you could not work, you could not be able to generate any income.

Unfortunately, none of us have a crystal ball to know our future if we will be stricken with an accident or an illness. For that reason, without any disability insurance, you are only playing ‘Russian Roulette.’ All on-going monthly expenses need to be paid whether you are working or not – taxes, mortgage/rent, heat, hydro, car expenses, etc.

How long could you survive with no income coming in? Most people would state that they could probably only last about 3-6 months.  Depending on Canada Pension or family/friends is not very realistic because their help may not really be there for you.
Disability insurance is your ‘income’ protection plan. It will give you an income to help you pay for on-going monthly expenses when your income is not there.  Your chances of being injured or sick before age 65 is about 1:8 vs. death being  1:104. It is the insurance that puts the ‘I’ in income and the ‘I’ in insuring yourself so that you will not experience a ‘certain’ financial disaster should you ever be unable to work.

You are a ‘money-making machine’ that can create money for you. If you were broken, disability insurance will create the money to help you to continue creating that income for your life.  For the cost of less than a coffee or tea/day, it can give you a ‘working career’ protection.

A few points to consider:

  • Only partner has disability insurance
  • When you can work, you generate own income
  • Very high risk that you could become injured or ill before age 65
  • All on-going monthly expenses need to be paid whether you are working or not
  • Disability insurance creates an income when you can not work
  • Not realistic to depend on Canada Pension, family or friends
  • You will experience financial devastation if you are disabled and can not bring in an income
  • Daily cost is less than a cup of coffee/tea per day