"I just broke my leg" - now what?

Dawn Luhning |

I had one of my mutual fund reps tell me this today. I immediately said to him "oh my! I hope you get better soon. And...I hope you had a great financial advisor like me, who sold you disability insurance!"

He came back to me and said "I wish!" ...

So now I'm wondering about the unexpected and thinking to myself, am I prepared if something unexpected happens? Well, as a financial/insurance advisor, I should be and I can tell you that I am. I would say that I would be a hypocrite if I didn't have personal insurance to protect against the unexpected, whether that be an injury or illness. Are you protected? Can you say the same?

I'll position it to you another way. Do you know what "paycheque insurance" is? Well, it's the same as disability but wouldn't it be great if we called this coverage this, which is just what it really is? If you didn't have a paycheque coming in, how would you pay your bills? Your car/truck loan? Your mortgage? Let's be honest, you wouldn't. 

Yet statistics show that there are more foreclosures on mortgages than ever before and debt is at its highest level in a long time. As long as we keep working, and making payments and I don't lose my job, it will all be fine.

What we also do though is pretend like it's never going to happen to me. Well it might. And are you prepared for that to happen? Is your paycheque insured?

Some people have group coverage through their work. Often, people don't know what is covered until they need it. That could be too late. Some plans don't include paycheque insurance or if it does, it can often be quite a bit less than what you are earning when you are working healthy. Often the coverage is anywhere between 60 and 75% of your monthly earnings. I've asked clients "do you live on 100% of your paycheque or do you live on 60 or 75%?"

At a minimum, let me review your group coverage. Let's ensure that you have paycheque insurance AND that it is enough. We can set up an appointment and I can review your group coverage for you. Then you will know what you have if the unexpected happens.

If you are retired or self-employed or not working, your paycheque should still be insured. You just may have to do it yourself. I can provide you with a quote to protect your paycheque. That may be in the form of disability coverage; it may be critical illness insurance or possibly long-term/lifestyle insurance. Retirees also should be protecting their health - the focus of what will need to be paid for just shifts a bit.

Each individual is unique and all of us hope that it wil "never happen to me". ...

If the unexpected does happen, I hope that you've given me, an insurance advisor, or someone like me, the opportunity to assess your situation, give you options and then you can say yes or no to those options. 

Make sure that paycheque insurance is in your arsenal. Your health and lifestyle depend on it.

"Your health is your wealth"

~ Dawn