I don’t have anyone relying on me, and I’m saving up enough money to become financially independent in 10 years. I live in Canada where I get basic health insurance for free. Do I still need disability insurance? And are there any other kinds of insurance I should consider getting?
The purpose of life and disability insurance is to provide financial protection in case of a fatal or debilitating accident or illness that affects your ability to provide income for your family.
You’re exactly right.
Life and disability insurance work together to provide financial protection for you and your family.
Life insurance offers a death benefit to your beneficiaries if you pass away. This can help them cover expenses like your mortgage or living costs, providing financial security during a difficult time.
Disability insurance provides a monthly income if you’re unable to work due to illness or injury.
This protects your income, your most valuable asset, and helps you maintain your standard of living if you can’t work for an extended period.
Even though you’re saving for financial independence, unexpected accidents or illnesses can happen.
Disability insurance can replace a portion of your income if you can’t work due to injury or illness.
While Canada’s healthcare system is great, it doesn’t cover lost income.
Since you don’t have dependents right now, the financial impact of disability might be less severe initially.
However, disability insurance can also help cover living expenses and maintain your desired lifestyle if you can’t work.
Disability insurance is a commitment to your future financial well-being. It provides stability during a period of disability and safeguards your capacity to support yourself and those you care about.