How to protect your biggest assets if you can’t work

(NC) Whether you’re just beginning your career or nearing retirement, you likely have some important assets in your life that need protection. Things like mortgage payments on your dream home to a year-long apartment lease to car payments to your retirement nest egg.

While we all hope to remain healthy and happy, sometimes unexpected events can leave us unable to work. And it’s not always a visible illness or injury like a car accident that prevents you from receiving your paycheque. In fact, a third of new disability claims from RBC Insurance clients 18 to 39 years old were related to mental health last year – and this is trending upward since 2019.

So, what should you do to protect yourself and your assets if you suddenly can’t work? Here are a few key tips:

1. Create a financial plan and update it regularly.
Keeping tabs on your finances and knowing what parts of your budget you can adjust if required can make it easier to see a future without your regular paycheque.

With inflation on the rise, the cost of homeownership – and pretty much everything else – is taking a bigger bite out of your finances. Most people would benefit from reviewing their priorities to work towards financial security.

2. Examine your benefits package and your employer’s policies.
If you have a benefits package through your job, take the time to get to know it – you’re paying into it after all. Discovering the ins and outs of your package means you’ll know your options if you must stop work. Check out policies on a leave of absence, see if you get any mental health days, and make the most of your coverage.

3. Sign up for or review your disability insurance.
Disability coverage can replace your income if you can’t work, so you can still make your payments without the added stress of dipping into savings. Ensure you have private disability coverage and check your workplace benefits.