Securing Your Income

Study Notes

Potential Income Threats

Job loss, economic downturns, and unexpected health issues are common threats to one’s income.
Industry changes or technological advancements can also lead to job displacement.

Job Loss Statistics

Approximately 20% of the labor force experiences job loss or voluntarily leaves their job each year.
This figure highlights the fluid nature of employment and the importance of financial planning.

Employment Insurance (EI) Purpose

EI is designed to provide temporary financial assistance to those who have lost their job through no fault of their own.
It aims to help individuals meet basic needs while seeking new employment or retraining.

Credit or Loan Insurance Requirements

Credit or loan insurance is not a legal requirement to be approved for a loan or to activate a credit card.
Lenders may offer insurance as an option to protect against non-payment but acceptance is generally voluntary.

Purpose of Credit or Loan Insurance

The main purpose of credit or loan insurance is to protect borrowers and lenders against the risk of default in case of unforeseen circumstances, such as illness or job loss.
It can help cover outstanding debts, potentially safeguarding the borrower’s financial future.

Description

"Protecting Your Income: Are You Prepared for Life's Unexpected Events?" Take this quiz to assess your understanding of the threats to your income and how to safeguard it against job loss, illness, or accidents. Learn about income replacement solutions and discover resources to help you achieve financial security. Don't let unexpected events derail your financial stability - start preparing today!