Most Canadian workers would suffer severe financial hardship if they were forced out of work with a disability.
In fact, 76% believe that should they become disabled and unable to work for three months, there would be serious financial implications for their family, such as significant debt or an impact on retirement plans, finds an RBC Insurance survey.
Despite the concern, only 27% have discussed how a disability would financially impact their family. This number does not increase substantially among workers who’ve indicated that they’ve taken time off in the past because of a disability (33%).
Read: Disability costs: The rocky road ahead
“Industry research shows that 26% of Canadians say they could not pull together $2,000 over the next month if an emergency expense arose, and more than half of Canadians believe they would find themselves in financial difficulty if their pay was delayed by even a week,” adds Mark Hardy, senior manager, life and living benefits, with RBC Insurance.
Additional findings include the following:
- 16% have individual disability insurance outside of any workplace coverage;
- if they became disabled, 34% would dip into personal savings to pay for essential living expenses; 29% would rely on their spouse/partner’s income; 19% on government support; and 16% on cash in investments.
“The average length of a disability over 90 days is between two to three years,” notes Hardy. “Canadians should ask themselves, ‘Do I have enough money saved to cover living expenses and healthcare bills throughout the entire length of my disability?’”
This story originally appeared on our sister site, Advisor.ca.
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