The Frugal Trader|Blogger, The Million Dollar Journey

Posted on October 22, 2014 and updated November 29, 2017 in Disability Insurance, Disability Insurance - What The Experts Own, Life Insurance Canada News


The Frugal Trader
Blogger, The Million Dollar Journey

1.What type of disability insurance do you own?
My wife and I have individual policies in own-occupation disability insurance.

2.What factors did you consider when determining the coverage amount?
At the time, we were just started our first jobs out of University, but had new liabilities of a mortgage and a car loan. At the time, we got enough insurance to cover our take home salary in the case of a long term disability. The amount really depends on your ongoing monthly expenses and where the money is coming from. If one spouse is the primary breadwinner, then he/she should have larger insurance coverage.

3. Do you think people underestimate the importance of disability insurance, and if so, why?
Insurance is all about protecting your dependants. For disability insurance, it protects your income stream should you become disabled and unable to earn income. If your job is your only source of income, then disability insurance is worth looking into.

4. What limitations or exclusions should people watch out for?
When purchasing disability insurance, there will be a lot of riders offered. I recommend doing your research before committing to those riders. When I signed up for my insurance, i was offered a “return of premium” rider which allowed me a “refund” of my premiums if I didn’t make a claim for x amount of years. Of course, there was a monthly fee required to obtain this rider. I did my calculations and worked out that it was not worth it for me. As well, if you are a professional, look into “own-occupation” disability insurance. If you are disabled, this type of insurance will only require you to go back to work if you can find similar work as before, rather than “any” work that you are capable of.

5. If you had to choose between critical illness and disability insurance, which one would you choose and why?
 Personally, I like the idea of disability insurance over critical illness. From my limited research into critical illness insurance, the coverage options are limited to specific ailments. Disability insurance provides a greater peace of mind to me. is a personal finance blog about a regular Canadian on his journey towards a million dollar net worth by the age of 35 (by the end of 2014). The blog was founded in 2006 with a starting net worth of $200,000. Through hard work, saving and investing, the big million dollar milestone was achieved in June 2014. You can follow the chronicle of his journey on, or his regular updates via twitter (

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