Chance can Create Change and being disabled is an issue that is worthy of discussion
The odds of becoming disabled during peak income earning years are greater than death. The Walton Financial Group in Barrie has advice related to disability and financial planning
A disability for you or a close family member such as a child will create new challenges for you and your family.
The truth is that during the course of your career, you are three and a half times more likely to be injured and need disability coverage than you are to die
Nobody wants to think about it, but you must take steps to protect your family and your future from what might happen if you become disabled and could not work.
Your lifestyle may be affected, and you will want to ensure that challenges can be anticipated and dealt with as efficiently as possible. Your advisors at The Walton Financial Group can help you in dealing with any financial pressures resulting from the disability and will also have further information about dealing with lifestyle challenges. Here are some questions for discussion:
- What are the government sources of financial support for those who are disabled?
- How will a disability affect my tax situation?
- Will my individual or group insurance cover me or a disabled child?
- How should I plan for the welfare of my disabled child after I am gone?
- If I have to sell assets to raise money how should I go about doing this?
- How does a Registered Disability Savings Plan work?
- What sort of services do the provincial or municipal governments provide to the disabled?
- How does my financial plan change if I become disabled?
Estate planning?
ESTATE PLANNING
If you have become disabled, it may have an effect on your estate plans. There are many issues you should discuss with your advisor to ensure your financial house is in order.
THE WILL
Everyone should have a valid and up-to-date Will in place. Without a Will, your estate will be distributed according to provincial intestacy law, which may not provide the distribution of assets that you intended.A lawyer should be consulted when a Will is being considered. There are legal and family issues that need to be addressed if this route is taken.
If you have become disabled, you may be thinking differently about how you want your estate to be distributed. A frank discussion with family members and consultation with a lawyer is highly recommended. You may decide that you would prefer to distribute some assets, perhaps a family cottage, to family members while you are still alive. If you intend to make inter vivos (while alive) distributions to persons other than your spouse, you should seek tax advice since these will most likely be deemed dispositions for tax purposes and could have tax impacts.
LIFE INSURANCE and DISABILITY INSURANCE
An important part of estate planning is life insurance. The proceeds from a life insurance policy can be used for settling estate debts, making sure dependents are taken care of, making charitable donations, etc. You should review your current life insurance coverage and your anticipated needs. The fact that you have a disability does not necessarily mean that you will not be able to take out more life insurance. The decision to provide life insurance is based on life expectancy and your disability may be such that your life expectancy is not affected or only minimally impacted. Let’s discuss your specific needs.
The insurance planning team at the Walton Financial Group in Barrie is ready to review with you the matter of disability insurance and where it fits in your overall financial plan
The financial advisor team at The Walton Financial Group in Barrie Ontario has the expertise to assist you in dealing with and planning for the financial aspects of disability
