Solutions: Aidan Cosgrave
on Disability Insurance
Someone says “insurance,” and you think
“money down the drain” or “who needs it?
I’m healthy!” Disability happens to other people—until
that “other people” becomes you, a loved one,
or a fellow artist. Aidan Cosgrave aims to give us “Peace
of Mind”.
I recently received an e-mail regarding a member of the
arts community who had become ill, was no longer able to
work and needed some financial assistance. As I have done
in the past, I sent a cheque to assist, though I knew this
was only a band-aid solution. The e-mail indicated that
the individual had no savings, no RRSPs, and no Disability
Insurance. Unfortunately, this is not an uncommon story.
I suspect that many readers out there are in need of reviewing
their health and financial management strategy.
As I wrote the cheque I thought back to other cheques that
I have written in similar situations and decided it was
time to spread the word to freelancers about the importance
of carrying Disability Insurance. To begin, I conducted
an unscientific survey, asking freelancers if they have
Disability Insurance. The good news was that the majority
knew what Disability Insurance was; the bad news was that
the majority did not carry it.
I know that this is an old topic but clearly the message
has not resonated with its target. This is evident in the
recent announcement in the States that the Altman Family
will be matching donations to support a fund for members
of the arts community who have been injured or fallen ill.
Why didn’t the surveyed freelancers have coverage?
One individual seriously said, “I don’t require
coverage because I am careful at work”. Most indicated
that they are covered by WSIB or the group plan offered
with their membership in an industry association. While
these are valuable to freelancers, WSIB only covers an individual
when they are injured on the job and many group plans only
offer short-term coverage.
Disability Insurance offers extended coverage and, most
importantly, covers you when you slip in front of a bus,
fall ill, or, in the worst case, have been diagnosed with
an incurable disease.
WSIB and group plans aside, the next reason given for not
having coverage was the cost and hassle of signing up. I
did not have an answer for this so I enlisted the help of
my Insurance Broker to review various plans and find a financially
viable option with simple sign up procedures.
For those unaware, Disability Insurance is a form of insurance
coverage that provides a portion of income lost as the result
of a total or partial disability caused by either an accident
or an illness. Who should carry this insurance? Everyone.
Who MUST carry this insurance? While it is not the law,
it is common sense that all individuals who are freelance
and/or small business owners should carry disability insurance.
As noted, the reason many individuals in the arts community
don’t have disability insurance is because it is perceived
to be expensive. On average by investing approximately 3%
of your annual income you can protect almost 90% of your
income. More importantly Disability Insurance offers peace
of mind, knowing that in the event that you are injured
or fall ill, your financial situation will remain relatively
solvent.
As a small business owner, I am very aware of the cost
and the need for Disability Insurance. But I am also very
aware of the cost when an individual does not carry the
necessary insurance and becomes injured or is stricken by
an illness. We are all human and tragedy can strike at anytime.
There are too many in the community who have ignored the
need for RRSPs, life insurance, savings, and, most importantly,
Disability Insurance.
This article is only the first step in ensuring that I
don’t have to write any more cheques. So, after Step
1 . . .
Step 2 - Continue to spread the word about the importance
of Disability Insurance;
Step 3 - Offer assistance to those with questions;
Step 4 - Source a cost effective and hassle free disability
insurance plan; and
Step 5 - Ensure that the curriculum in all Arts related
programs includes a course on the financial responsibilities
of the freelance community.
Disability Insurance = Peace of Mind.
So contact me:
Aidan Cosgrave
J.S.T. Productions
jstproductions@bellnet.ca
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