Client Success Stories – Joseph
Client Information: Joseph is 32 years old, male, non-smoker
Relationship Status: Single
Employment Status: employee of a small tech company
Annual Income: $100,000
Joseph has been working for a small website development business for 4 years. Because of the size of the company, they do not offer their employees a comprehensive Group Benefit Plan, which means Joseph does not have access to disability coverage. This is becoming a significant source of stress for Joseph; he had a friend who was unable to work for 18 months due to a back issue and it got Joseph concerned about his own situation. He has grown accustomed to a certain lifestyle that is funded by his $100,000/year salary. If he was unable to work for an extended period due to illness or injury, his savings would be depleted in a matter of months and eligibility for any government programs, such as EI or CPP Disability, would do little to maintain his lifestyle. Simply put, he would not be able to afford his rent or car payments, a situation causing Joseph some sleepless nights.
After meeting with Joseph on a couple of occasions, we implemented some solutions that matched his needs and solved his problems. To combat income loss if he was unable to work, Joseph applied for Disability Insurance with a Future Income Rider. This means he will receive the equivalent of roughly 85% of his pre-disability income, and in the likely event his salary continues to rise, he can increase his disability benefit without going through additional underwriting. For this comprehensive income replacement plan, Joseph pays 1.5% of his annual salary towards the insurance premium, and in turn he is protecting nearly all of his future earning potential, up to age 65. There are no more sleepless nights for Joseph!
DISCLAIMER: client names have been changed to protect their identity.