How Much Coverage Is Enough?

It’s recommended to choose coverage equal to about 60% of your gross or after-tax income to ensure your basic financial needs are met.

How Much Does Disability Insurance Cost?

The cost of disability insurance is usually between 1% and 3% of your annual income. The exact amount depends on individual factors such as age, health condition, occupation, and specific policy features.

What Is the Elimination Period?

The elimination period is the time between the start of a disability and the beginning of benefit payments. Common options include 30, 60, 90, 180, or even 365 days. Choosing a longer elimination period usually lowers your monthly premium — as long as you can cover your expenses during that waiting time.

How Long Does the Benefit Period Last?

It’s the length of time the insurer agrees to pay disability benefits. This period may last until age 65 or 67, or for a set number of years. Most commonly, coverage continues until age 65.

Is Employer Disability Insurance Enough?

Most employer-provided disability plans offer limited coverage, especially for long-term protection. They may not replace a large portion of your income compared to a personal policy. That’s why supplemental private insurance is recommended.

Is Partial Disability Covered?

Yes. Some plans include partial disability coverage, known as a residual benefit, which pays a portion of your benefits based on your reduced income.

How Do You File a Claim and What Are the Requirements?

To file a claim, you must provide documents such as a medical report, proof of income, and any other required forms to the insurance company. The review process may take several weeks to a few months.

What Happens If You Have More Than One Disability Insurance Policy?

You can receive benefits from multiple disability policies at the same time — for example, combining an employer plan with a personal one. However, each policy has its own rules and limits, so it’s important to review them carefully.

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Disability Insurance

Disability insurance can protect you by replacing a portion of your income if you are unable to work due to a serious illness or injury.

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Disability Insurance

Disability insurance is designed to compensate for lost income when you are unable to work. Through monthly payments, it allows you to maintain your lifestyle and manage your expenses.

Benefits are paid directly to the insured, with no restrictions on how the funds are used. Even if you receive benefits from other sources (government or employer plans), this insurance provides additional independent coverage.

This protection is active 24 hours a day, 7 days a week, throughout the entire year—regardless of your occupation.

Why Is Disability Insurance Important?
In Canada, many people live paycheck to paycheck — meaning most of their monthly income goes toward essential expenses such as rent or mortgage, car payments, bills, groceries, and insurance. In such situations, even a few days of disability can disrupt a family’s entire financial stability.

If you are unable to work due to illness or an accident, in most cases, you will not receive any replacement income — not from your employer, not from the public healthcare system, and not from the government.

Meanwhile, life goes on as usual:
Rent, loan payments, medical costs, daily necessities, and family responsibilities don’t stop when your income does.

Many people are forced to rely on limited savings, take out loans, max out credit cards, or even skip medical care just to make ends meet.

Key Financial and Support Benefits of Disability Insurance

Regular monthly payments

If you are unable to work, the insurance provides a fixed monthly payment of up to $3,000.
These payments replace lost income and help you manage essential living expenses such as rent, loan payments, and daily costs without financial strain.

Flexibility and long-term coverage

Comprehensive and continuous coverage

Disability insurance is active 24 hours a day, 7 days a week, with no time or location limits.
This means you’re protected at all times — whether at home, at work, or while traveling.

Disability Insurance FAQs

Some policies include optional riders such as: • Catastrophic Disability Coverage: Full benefits if you suffer a severe disability (for example, losing the ability to perform two basic daily activities). • Cost of Living Adjustment (COLA): Annual benefit increases to keep up with inflation. • Future Purchase Option: Allows you to increase coverage later without a new medical exam. • Residual Disability Coverage: Partial payments if your income decreases but you’re still able to work.