Do I Need Disability Insurance After I Retire?

You can’t wait for your retirement to happen. You’ve been dreaming of it for the past 10 years and it is nearly time. However, you have a few years left. During this time, you may be considered that something bad is going to happen and ruin your finances. So, should you think about acquiring and holding onto a disability insurance policy a few years from your retirement? Within this guide, you will learn more about the importance of having disability insurance despite being a few years away from retirement.


Do You Need It?

Should you have disability insurance while close to the retirement age? Ultimately, it is tough to say. Instead, you will need to analyze your current situation to find out whether you should have disability insurance. Depending on your current situation, you may find that it is a good idea to have insurance until you retire. Or, you may find that it is a waste of money. You have to determine this for yourself.

When doing so, you should try to figure out how much money you intend to spend over the next few years. How much will you spend until you retire? You’ll also want to think about your current savings. Do you have plenty or have you neglected saving more money for retirement? Finally, you should think about your spending habits. Are you a big spender who loves buying stuff?

If you are, you’ll likely want to protect yourself with disability insurance. If you have saved a lot of money and you aren’t going to spend a lot in the next couple of years, you shouldn’t feel obligated to buy a disability policy. Disability insurance is designed to replace your income if you become too sick or injured to work. Since you have a lot of money saved, you won’t have to worry about it. The money you have saved can replace your income.


When You Should

Unfortunately, a lot of Canadians do not plan for the future. Many have not saved a lot of money for the future. If you fit into this category, you may find a disability insurance plan is a good option for you. To help you save money quicker, you should use long-term disability insurance. If you don’t, you may get hurt or sick. Then, you might have to spend all of your savings on life. To prevent this from happening, you can use your long-term disability insurance to cover the costs.

Canada is a diverse place. Many people have saved but a lot of people haven’t. It isn’t too late. If you still need to save money, you should start by signing up for a long-term disability policy.


Other Situations Not To Have A Disability Policy

Depending on your situation, you may not need a disability policy. It depends on your current life and finances. For instance, you may live with a significant other who has recently retired. You worked diligently over the years to save money. Since you’ve saved a lot and your parents are receiving retirement, it might be okay to avoid buying a disability policy. You’ve likely saved enough money to make it by.

Furthermore, your partner does not need disability insurance since they’re no longer working. You and your partner will likely be okay since you have saved enough money. You shouldn’t feel obligated to buy a disability insurance policy.


Nearing Retirement

Unfortunately, most families in Canada haven’t saved a lot of money for retirement. So, the majority will benefit greatly from having a disability insurance policy. If you’re 60 and you haven’t saved much, it would be a good idea to obtain insurance. Your savings are not being protected by a pension or another benefit. You want to make your last few years of working count. To do that, you should shield your money from being taken away by an illness or injury.

You cannot afford to put your savings at risk so signing up for a disability insurance policy would be wise. If you get ill or injured, you will be able to use your insurance to cover the costs instead of dipping into your savings.


Reasons To Have A Disability Policy

You can find a lot of reasons to purchase a disability policy. Some households like spending money. You may enjoy buying a new vehicle every year. Or, you might like RVs and campers. Since you’re spending a lot of money, you know that your savings likely aren’t going to last long. Unless you change your lifestyle, the money will be gone before you know it. Your investments and savings can provide a modest lifestyle but you may want more.

You’ll likely have a tough time adjusting to the new lifestyle. You won’t be able to spend like you did. Furthermore, the change may impact your quality of life. To ensure you have some protection, you should have a disability insurance policy.


Peace Of Mind

It would be nice if the world was perfect. If it was, you wouldn’t need to worry about paying for a disability insurance policy. However, a lot of Canadian consumers haven’t prepared for retirement. They may spend too much and they’ve saved too little. If retirement is getting close and you want to make the most of your last few working years, you should obtain a disability insurance policy. This insurance can protect you and your future earnings.

Without it, an injury could easily wipe out all of your savings from the past few years and that would ruin your retirement.


Should I Have Long-Term Disability Insurance?

It is tough to say without knowing your situation. With this in mind, it is up to each Canadian to find out what is going to work best for them. Have you saved enough money to retire comfortably right now? If you’ve answered no to this question, there is more to be done. Signing up for a disability insurance policy is a good start. Work the last few years  to save more money and use the insurance to protect your assets.


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