There are many surprises in life, and not all of them are good. The unexpected can occur at any time, whether it’s an unplanned house repair, a sudden medical emergency, or a job loss. Financial readiness is the key to resiliently enduring severe storms. We’ll look at doable tactics in this book to strengthen your finances and make sure you’re prepared for anything life throws at you.
Though you might not want to consider it, there’s a good risk that a sickness or accident will force you to take a temporary or permanent leave of absence from work. According to statistics, one in five Canadians will at some point in their lives deal with a disability. At least once before they turn 65, one in three persons may experience a disability lasting 90 days or longer, according to the Canadian Life and Health Insurance Association.
For self-employed individuals, the financial obligations associated with a leave of absence might extend beyond oneself and their family, as the capacity to continue working is crucial to business associates and staff as well.
You can take some proactive measures to improve your financial security in the event that an illness or disability prevents you from working.
If you can, it’s beneficial to begin allocating at least half of your income to meet essential costs during a prolonged leave of absence from work. Think about potential funding sources, such as financial support from a partner, spouse, or family member.
To find out if the company’s group insurance policy provides coverage for short- or long-term disability benefits, check the coverage offered by your place of employment. Check the conditions and duration of the illnesses and accidents for which you are insured.
Determine whether you are eligible for disability payments under the Canada or Quebec Pension Plans, or whether you are eligible for the government of Canada’s Employment Insurance.
Take stock of the areas in which your particular needs for financial security aren’t entirely satisfied, and then determine whether you require further protection, like an individual disability insurance coverage.
You may create a solid financial foundation that can endure life’s vagaries by putting these preventive measures into practice. Recall that being financially prepared doesn’t mean making predictions about the future; rather, it means building a flexible and sturdy financial structure that will enable you to weather difficult times and come out stronger on the other side.