Case Study: Jonathan, 44
Jonathan is an engineer, he owns his own successful consulting company. He has a wife, Julie, and three children who are 9, 13, and 17 years old. Jonathan has a beautiful home with no mortgage. He owns some investments, both RRSP's and non-registered self-directed investment accounts that he enjoys as a hobby. He also has a group benefits plan at work he put in place some time ago for him and the employees. The plan is well-structured, with some life insurance and great health and dental benefits, but Jonathan did not want long-term disability on the plan at the time.
Jonathan's career is rewarding financially, however, it is extremely stressful. A few times he felt like he was having issues with stress and anxiety which has forced him to visit his doctor in the past. His doctor would often tell him to slow down a bit with work as it's the stress causing these symptoms, along with the bad eating habits and lack of exercise. Jonathan would often agree with his doctor, but do nothing to change. Months later, Jonathan suffers an anxiety attack. He collapses and is rushed to the hospital. Once released and back at home recovering, fortunately it wasn't a long road to recovery. He was concerned about the well-being of his company and the thought of him not being able to work long-term which would cause the company to suffer if he isn't working for long periods of time. Not to mention if one of his key employee's were to suffer a disability, how would the business be impacted?
Jonathan decides to go back to work earlier than the doctors had recommended. He started to think about the offer to add long-term disability to his benefit plan. He also recalls the advisor he dealt with stating the importance of having a more comprehensive disability coverage separate of the benefit plan since he is the owner, implying his importance to the survival and longevity of the company. Jonathan decides to consult his insurance advisor to re-assess the disability coverage, for himself and for the key employee's of his company. His advisor highlights the fact that this recent health issue may impact him applying for coverage, and hinder his approval for the insurance. He now realizes the significance of applying for coverage while he was healthy, rather than after an occurrence of a health issue to complicate matters.