The Story of the Golden Goose

What would you do if you had a goose that laid golden eggs?
The Story of the Golden Goose | CM Connect Blog

The Story of the Golden Goose

You find a goose that lays golden eggs. Which do you insure - the goose or the eggs? Actually, you are your own golden goose and you need to insure yourself. 

You depend on your paycheque to cover monthly expenses, as well as fund your savings account, education costs, retirement plans, etc. So what would happen if you suddenly had a debilitating accident, or fell sick, and could no longer work?

How would you...
  • Replace your income? 
  • Pay your rent or mortgage? 
  • Purchase groceries?
  • Handle day-to-day living expenses?
  • Put fuel in your vehicle?
  • Make vehicle payments?
  • Save for retirement?
  • Assist with your children’s education?


There are many answers that can be given to this question. Here are the most common ones we hear. 

My employer will cover me

Ask yourself, how long will the business  continue to pay you? How much will they pay you? At what point will your employer need to hire a replacement for your position? Can the business actually afford to pay both?


I can use my savings account

If you saved just 10% of your income each year, in just one short year of disability, your savings would be wiped out. Can you afford that? Would you rather those savings go towards something greater, such as retirement, or education for your children?


My spouse will take care of me

Can your spouse earn enough money while staying by your side? Can they be a partner, parent, caregiver, and an employee - all at the same time? 


My friends and family will help

Will they have sufficient funds to help you, and are you prepared to put the burden of your expenses on your family or close friends?


I’ll take out a loan                         

Without an income, which institution would be willing to lend you money?


I can sell my investments

Most likely, a sale under force conditions will not bring true value to your investments. 


I’ll use the Canada Pension Disability Benefit 

To qualify for this, you must sustain a severe and indefinite mental or physical disability and be unable to work at ANY occupation. You could very well be among the applicants who never collect a cent, and there is no guarantee that all your expenses will be covered if you do receive this. 


I have disability coverage through my insurance agency

I’ve taken a proactive and preventive approach to an unexpected accident or illness and know that I will be financially prepared to handle expenses while unable to work.  


The Story of the Golden Goose

Now that we’ve discussed disability, what about income protection from death?


In the unfortunate event that your significant other was to pass away, what would happen then? Let’s take a look at an example of what could happen to your income in this situation. 


Ex. A couple makes $110,000 a year -  $45,000 from him, $65,000 from her. 


He passes away. 

She has just lost her husband. 

She has now also lost $45,000 a year towards her household income.

She needs time to grieve. How much time can she take off work for this?  


Since employers are only required to pay her 3 days of wages, she may need to take a lay off and EI may or may not approve this. If EI does respond, they will only provide up to 55% of her gross monthly income, capped at $573/week, for a maximum of 15 weeks.

This widow has now quickly gone from a (take home) monthly income of $7,026.00 down to $2,292.00 - while grieving.

The moral of the story? 

Disability Coverage is for you, your family, and your lifestyle. 

Life insurance is for the ones you leave behind. 


  
If you're looking for more information on how disability, living benefits or life insurance works, give us a call at 403.526.1345 or book an appointment with us online.