LAW AND ARTICLING STUDENTS

How does my risk of being disabled compare with the other risks I’ve insured against?

Most people have little reluctance to own life insurance. After all, death is inevitable and visible. We see the obituaries and go to funerals. The result is that most people choose life insurance over disability insurance protection because they believe death is their greater risk. You’d never consider going without insurance on your house and car, but it may surprise you to learn that the odds of you making a significant claim in any given year on one of those policies is far less likely than claiming on a disability policy.

In any given year:

Fire Insurance ​1 in 274 homes have fires
Auto Insurance ​1 in 150 vehicles have serious accidents (causing disabling injury or death)
Life Insurance ​1 in 140 people die
Disability Insurance ​1 in 13 people become disabled for at least 30 days

Sources :
US Census Bureau (1999), National Fire Protection Association (1999)
​Injury Facts, Motor Vehicle, (1998)
​Statistics Canada (1999, 2000)
Society of Actuaries, CIA 86-92 Table
Table DTS 1985, SOA

Have life insurance on your mortgage? A disability is up to 16 times greater than death to be the cause of a mortgage foreclosure!