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CALCULATING YOUR
DISABILITY INSURANCE NEEDS
What you should consider
How much disability insurance should you have? That depends on many things:
• Lifestyle: What does your current standard of living cost and how do you feel
about having to cut back?
• Family responsibilities: How many people depend on your income? Are you
a single parent or a non-custodial parent with financial responsibilities? Do you
have parents or siblings who depend on your income?
• Employment flexibility: Would you be willing and able to change jobs?
• Debts: Who would make your mortgage and car loan payments, if your pay
cheque stopped? How long would your savings last?
• Financial resources: How dependent are you on your pay cheque? Do you
have savings, or investments that give you an income? How long would they
realistically last?
• Dreams: What would happen to your future plans for your family, yourself or
your retirement if your disability lasted long enough to wipe out your savings?
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