Disability Insurance
Most people insure their car and their home, then leave uninsured the income that pays for both. Disability coverage replaces your paycheque when you cannot work.
How it works
A monthly, usually tax-free benefit after a waiting period, paid for as long as the policy defines — often to age 65.
- · Benefit typically 60–85% of take-home income
- · Waiting periods from 30 to 120 days
- · Benefit periods of 2 years, 5 years, or to 65
- · Own-occupation definitions for professionals
For the self-employed
No group plan, no sick pay, and EI sickness benefits are limited. This is where personal coverage matters most.
- · Coverage based on business income
- · Business overhead expense options
- · Guaranteed insurability as income grows
- · Return-to-work and partial disability benefits
Disability insurance: protecting your income
Your ability to earn is the asset every other financial plan rests on. A disability lasting more than 90 days is far more likely during your working life than death — and the mortgage, groceries and childcare do not pause while you recover.
Disability insurance pays a monthly benefit after a waiting period, typically 60 to 85 percent of your take-home income. When you pay the premiums personally, the benefit is generally received tax-free. Waiting periods run from 30 to 120 days, and benefit periods from two years to age 65.
The definition of disability in the contract matters more than the price. An own-occupation definition pays if you cannot perform your own job; an any-occupation definition only pays if you cannot perform any job you are reasonably suited to. The second is far cheaper and far weaker.
For the self-employed there is no group plan and no sick pay, and EI sickness benefits are capped and time-limited. Personal coverage, and business overhead expense coverage to keep the company running, is where the protection has to come from.
- · Personal disability income coverage
- · Own-occupation definitions for professionals
- · Business overhead expense coverage
- · Coverage based on self-employment income
- · Waiting periods from 30 to 120 days
- · Benefit periods to age 65
- · Partial and residual disability benefits
- · Guaranteed insurability as income grows
Frequently asked questions
How much of my income can I insure?+
Typically 60 to 85 percent of take-home pay. Insurers deliberately cap it below full income so there is always a financial reason to return to work.
Is the benefit taxable?+
If you pay the premiums personally with after-tax dollars, benefits are generally received tax-free. If your employer pays, benefits are usually taxable.
What is own-occupation coverage?+
It pays if you cannot perform the duties of your own occupation, even if you could work in another field. It is the stronger definition and worth the extra premium for specialised professionals.
I am self-employed — can I still get it?+
Yes, with coverage based on your business income. This is the group that needs it most, since there is no employer plan behind you.