I recently read an article from the Globe and Mail titled Your Biggest Asset? You!.
It is such a great article, I am posting just it so that everyone understands the importance of their ability to earn an income.
Canadians’ ability to earn income is usually their biggest asset, more valuable even than their home or other investments, and that asset is at greater risk than many realize, through death, disability and illness, says Steven Parker, Assistant Vice-President, Product and Marketing, Individual Insurance, Manulife Financial.
“Your greatest asset is yourself and your ability to earn income,” he says.
“Every day you have costs. You have overhead associated with your life. Typically your largest debt is your mortgage. Then you have car payments and you’re thinking about education or savings, and the day-to-day cost of living. Well, often your biggest asset is your ability to earn income to pay for these things. Canadians in general don’t think of income-earning as an asset. They think, ‘well, if I have investments, they’re assets. If I have cars, they’re assets.’ I think it’s because it’s not as tangible.
“And,” Mr. Parker adds, “we have a study that shows that for young married couples, the risk of one of them becoming critically ill or disabled by age 65, or of dying by that age, is 75 to 80 per cent.” Critical illness or disability would endanger that income-producing asset temporarily or indefinitely. So the risk is staggeringly high.
“There’s a compelling chance that something is going to happen to you that’s going to interrupt your flow of income, or your ability to earn income and to pay bills,” Mr. Parker says.
But the awareness among Canadians of that risk to their biggest asset is low. “It’s all about awareness,” he says. “There’s an element of ‘this won’t happen to me.’ And younger people tend to think, ‘I’ll get to it.’”
In 2011, Manulife surveyed 1,000 homeowners across Canada between 30 and 50, with a household income of $50,000 to $150,000, and found that 92 per cent did not have comprehensive insurance protection – a plan that protected them and their families in the event of critical illness, disability or death. “Canadians are often underinsured or even not insured at all,” Mr. Parker says.
Contact me to go over how we can protect your ability to earn an income.
Tyler Brown – Financial Security Advisor
WP: (519) 648-9580
CP: (519) 212-9859
FX: (519) 489-2740
244 Woolwich St. South, Unit #1 ~ P.O. Box 261 Breslau, ON ~ N0B 1M0