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February Newsletter

Personal Wealth and Finance


What is Disability Insurance?

February 1, 2025

Disability Insurance provides a monthly income if you are incapacitated and incapable of working due to an injury or illness. Often called “Income Replacement Insurance,” this coverage is essential for self-employed individuals and those without disability insurance via their employer.

The risks of income loss Your ability to earn income may be compromised through injury or illness if you become disabled. Your ability to pay bills or save for retirement could decline. Disability insurance plans are designed to help you meet necessary income requirements, enabling you to concentrate on recovering from your disability and returning to an active income-generating life.

Who can be covered? Income protection can provide peace of mind for professionals such as lawyers or doctors, small business owners like plumbers or carpenters, leading business executives, and full- or part-time or home-based workers. You can also supplement the disability coverage you have with an employer or an association such as the Canadian Association of Retired Persons (CARP).

How do you collect disability benefits? Generally, disability benefits are received if you can’t perform the duties of your occupation, a similar job in your field, or any job at all. Your policy contract determines how soon and for how long you can collect benefits.

Disability insurance benefits are payable every month during a disability for the benefit period of the contract, which can vary. The policy continues when you recover from a disability; benefits are usually payable again for a subsequent or recurring disability.

I’m healthy: why should I be covered? Most people are aware of the importance of life insurance but rarely think about having a disability despite the statistics indicating they are pretty standard. Death is inevitable, while disability is probable at any given age.

If you run a business (or work as an employee), you should be covered by some form of disability insurance (income replacement). Planning is the only way to avoid the financial and emotional stresses resulting from long-term disability. Develop your backup plan today!

 

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The particulars contained herein were obtained from sources which we believe are reliable, but are not guaranteed by us and may be incomplete. This website is not deemed to be used as a solicitation in a jurisdiction where this representative is not registered. This content is not intended to provide specific personalized advice, including, without limitation, investment, insurance, financial, legal, accounting or tax advice; and any reference to facts and data provided are from various sources believed to be reliable, but we cannot guarantee they are complete or accurate; and it is intended primarily for Canadian residents only, and the information contained herein is subject to change without notice. References in this Web site to third party goods or services should not be regarded as an endorsement, offer or solicitation of these or any goods or services. Always consult an appropriate professional regarding your particular circumstances before making any financial decision.

Mutual Funds and/or Segregated Funds Disclaimer

Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investment funds, including segregated fund investments. Please read the fund summary information folder prospectus before investing. Mutual Funds and/or Segregated Funds may not be guaranteed, their market value changes daily and past performance is not indicative of future results. The publisher does not guarantee the accuracy and will not be held liable in any way for any error, or omission, or any financial decision. Talk to your advisor before making any financial decision. A description of the key features of the applicable individual variable annuity contract or segregated fund is contained in the Information Folder. Any amount that is allocated to a segregated fund is invested at the risk of the contract holder and may increase or decrease in value. Product features are subject to change.


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Mutual Funds and Segregated Funds provided by the Fund Companies are offered through Worldsource Financial Management Inc., sponsoring mutual fund dealer. Other Products and Services are offered through Stuart Rowles and Rowles Financial.

Worldsource Financial Management Inc - Disclaimer

Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the fund specific simplified prospectus before investing. Mutual funds are not guaranteed and are not covered by the Canada Deposit Insurance Corporation (CDIC) or by any other government deposit insurer. There can be no assurances that the fund will be able to maintain its net asset value per security at a constant amount or that the full amount of your investment in the fund will be returned to you. Fund values change frequently and past performance may not be repeated.

Labour Sponsored Investment Funds (""LSIF"") have tax credits that are subject to certain conditions and are generally subject to recapture, if shares are redeemed within eight years. Please note that Mutual Fund Representatives in Alberta are not permitted to sell LSIF.

Your Worldsource Financial Management Inc. ("WFM"), mutual fund advisor maintains business interests that are separate and distinct from his/her WFM business activities. You will be provided complete information concerning these outside business interests, including who is responsible for each business activity. The disclosure will provide you with that information and will explain your rights and with respect to business that you place with WFM through your mutual fund advisor. WFM assumes responsibility and liability for “Worldsource Financial Management Inc. Business Interests” only. All business activity undertaken by your mutual fund advisor that are not the specifically designated as “WFM Business Interests” are not the responsibility of WFM. Therefore, WFM does not assume any liability for any such activity.

The information contained on this Internet Website is for general information purposes only and is the opinion of the owners and writers. Investors should educate themselves regarding securities, taxation or exchange control legislation, which may affect them personally. This web site is for general information only and is not intended to provide specific personalized advice including, without limitation, investment, financial, legal, accounting or tax advice. Please consult an appropriate professional regarding your particular circumstances.

This Internet Website does not constitute an offer or solicitation in any jurisdiction in which such offer or solicitation is not authorized or to any person to whom it is unlawful to make such offer or solicitation.

References in this Internet Website to third party goods or services should not be regarded as an endorsement of those goods or services. By accessing any of the links provided you will be leaving the Rowles Financial Website. Rowles Financial is not responsible for the information contained on these websites.

All information provided is believed to be accurate and reliable, however, we cannot guarantee its accuracy. Worldsource Financial Management Inc. will not be held liable for any inaccuracies in the information presented, nor will WFM be held liable for any software damages resulting from the use of this website. Mutual funds are offered only in Canada.

Risk of Borrowing to Invest

Here are some risks and factors that you should consider before borrowing to invest:

Is it Right for You?

You should not borrow to invest if:

You Can End Up Losing Money

Tax Considerations


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