Financial planner Jean-Sebastien Jutras warns citizens who want to forego certain insurance to save costs in this inflationary period.
Moreover, among the non-mandatory protections, disability insurance is a “must have” for everyone, he explained.
“For example, a 40-year-old woman who does not smoke has a greater than 20% chance of becoming disabled by age 65. 20% is too high,” say experts.
Most workers with group insurance have salary insurance, which is similar to disability insurance.
However, it's also important to know your protection, as insurance often doesn't cover 100% of your salary loss.
“For example, a carpenter earning about $80,000 a year is equivalent to $1,500 a week. Their disability coverage is $565 per week. You go from $1,500 to $565, which is huge and these people may not know,” he says.
In this case, if you need more than $500 a week to meet your needs, the expert suggests taking out other insurance to cover the gap.
In case of disability, you will receive the sum of two insurance policies.
Check out all the details in the video above.
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