Disability insurance provides you with a portion of your income if you’re unable to work due to illness or injury. Whether the disability is short-term or long-term, this type of coverage helps you manage everyday expenses like rent, groceries, and bills while you focus on recovery. It acts as a financial safety net, ensuring you can maintain your standard of living even when your ability to earn an income is interrupted.
Many people assume their savings or workplace benefits will be enough, but those often fall short or don’t last as long as needed. Disability insurance offers peace of mind by protecting your income—the foundation of your financial well-being. It’s especially important for self-employed individuals, families relying on a single income, or anyone who wants to avoid dipping into savings during a health crisis.
Disability insurance is a type of insurance coverage that replaces your earned income if you become disabled and not able to work. Your cost of living, savings for retirement, and overall wellness depend on your income, so it makes sense to have it protected.
There are two types of disability insurance.
Most people assume ‘disability’ applies only to catastrophic conditions, such as paralysis from a car accident or a debilitating stroke. In many situations, however, disabilities are the result of less severe injuries and more common conditions, such as pregnancy, back pain, depression, anxiety, and digestive disorders. Mental health issues account for almost 50% of all disability claims today.
Most people assume ‘disability’ applies only to catastrophic conditions, such as paralysis from a car accident or a debilitating stroke. In many situations, however, disabilities are the result of less severe injuries and more common conditions, such as pregnancy, back pain, depression, anxiety, and digestive disorders. Mental health issues account for almost 50% of all disability claims today.
First, use your income needs as guideline to determine your monthly benefit payout you would be eligible for.
Second, look at your regular monthly expenses.
Third, do you have income from other sources?
If you have disability insurance through your job that is a great added benefit, but generally speaking, it may not be enough to cover your entire income or your expenses.
Yes, the Canadian government provides disability benefits through programs like the Canada Pension Plan Disability (CPP-D) and, in some cases, provincial assistance. However, these programs have strict eligibility criteria and typically provide only a portion of your previous income—often capped at a modest amount. For example, CPP-D payments in 2024 average around $1,100–$1,500 per month, which may not be enough to cover rent, bills, and other living expenses.
That’s why many Canadians choose to supplement with private disability insurance. Private coverage can offer a higher monthly benefit, more flexible terms, and faster access to funds—giving you greater financial stability and peace of mind if you’re unable to work due to illness or injury.
The cost of disability insurance depends on several factors, including your age, occupation, health, income level, and the amount and length of coverage you choose. On average, premiums range from 1% to 3% of your annual income. For example, if you earn $60,000 a year, your coverage might cost between $50 and $150 per month.
While it may seem like an added expense, disability insurance is a smart investment in your financial security. It ensures you have income protection if you’re unable to work—helping you avoid dipping into savings or going into debt during a difficult time.
Our disability insurance plans offer a range of options to choose from, including return of premium (R.O.P.) Rider.
Canada Pension Plan (CPP) and Quebec Pension Plan (QPP) disability benefits are limited and may be more restrictive.
Most employer-sponsored plans end when you leave your job. A disability insurance plan from your own Insurance can go with you.