TORONTO: An RBC Insurance survey says that most Canadian workers would suffer severe financial problems if they were forced out of work with a disability.
Seventy six per cent 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. Despite the concern, only about a quarter (27 per cent) of Canadian workers have discussed how a disability would financially impact their family. This number does not even increase substantially among workers who’ve indicated that they’ve taken time off in the past because of a disability (33 per cent).
Mark Hardy, senior manager, Life and Living Benefits, RBC Insurance, said, “A long term disability can have serious consequences affecting one’s financial situation, including leaving insufficient funds to cover regular living expenses and/or delaying or reducing retirement savings. Industry research shows that 26 per cent 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. These findings emphasize the need for Canadians to ensure that they have the appropriate level of coverage in case of a long term disability.”
