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Disability : subscription decline, but higher needs



28 May 2019 13:30

Photo : Freepik

A survey from RBC Insurance reveals that despite the fact that the needs for disability insurance are rising, the purchase of the product is declining. Between 2018 and 2019, the number of canadian workers who purchased an insurance product disability has dropped by 5% to reach 50 %.

However, the data from RBC show that 68 % of workers have already had the experience of a stoppage of work due to a disability.

“It is disturbing to observe an inverse trend between the number of Canadians who are in need of a stoppage of work for disability, and those who have coverage or the financial means — to do so,” says Maria Winslow, senior director general, health insurance at RBC Insurance. With half of the active population without disability insurance, many Canadians are at risk on the financial plan. “

A significant financial impact

In addition, 50% of respondents say that they would have loved to take a leave of absence for disability, but felt that they could not afford it. This brand is up 5 percentage points from 2018, is it indicated in the survey.

More than two-thirds (67 %) of canadian workers agree that the financial impact could be “serious” for them and for their family if they are disabled and they can’t work for three months.

“Do not work due to a disability can have serious consequences on the financial situation of a person, including its ability to meet its current expenses as his mortgage, his bills, or even grocery store, says Ms Winslow. It is important for Canadians to speak with their family and they take the necessary steps to prepare for the financial impact of not being able to work. “

Among those who have taken a disability leave, 56% said they had to return to work earlier for financial reasons, or 5% more than in 2018, also highlights RBC Insurance. Nearly half (45 %) have done so because of pressures from their employer.

Decline requests of services

RBC Insurance has however predicted that the incidence rate of claims for disability benefits long-term decline of 3.6% in 2019 compared to the previous year, according to his estimate of the long-term disability insurance collective.

John Carinci, vice-president, operations and customer experience with the insurer, argued that this decline might be explained by the expected deceleration of the gross domestic product (GDP). “Even if the rate remains high in the whole, the year 2019 marks, however, a change of direction, after two consecutive years of growth. “

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