Disability Insurance
Protect your income, lifestyle, and family with reliable disability insurance.
What Is Disability Insurance ?
Disability insurance (sometimes called “income replacement insurance”) provides a tax-free monthly income if illness or injury prevents you from working.
It helps protect your lifestyle, bills, and family if you can’t earn your usual income.
Why It’s Essential ?
- Even healthy people can face unexpected illness or injury.
- Government programs (CPP/QPP) often have strict eligibility and offer limited monthly benefits.
- Employer coverage (group insurance) may not fully cover what you need, and it may vanish if you change jobs.
- Without coverage, you may have to dip into savings, retirement funds, or go into debt.

Key Features of Disability Insurance
- Benefit Amount
Usually covers 50 %-80 % (or sometimes up to 90 %) of your net income, depending on plan.
- Waiting Period (Elimination Period)
The time between disability and benefit payments — usually 30, 60, 90, 120, or 180 days. Longer wait = lower premiums.
- Benefit Period (Duration)
How long you’ll get payments: could be 2 years, 5 years, up to age 65, or “to retirement.”
- Guaranteed Rates
Some policies lock in rates until a certain age (e.g. age 65) so premiums won’t increase during that time.
How It Works

Choose Coverage
Select your monthly benefit amount, waiting period, and benefit period.

Pay premiums
Make regular monthly or annual premium payments.

File a Claim
If you become disabled (as defined in your policy), submit a claim.

Receive Benefits
After the waiting period, you’ll receive monthly payments until you return to work or the benefit period ends.
What Factors Affect Premiums
- Your age (younger = cheaper)
- Health & medical history
- Occupation (if your job is risky, premiums are higher)
- The waiting period you choose (shorter = more expensive)
- Duration of benefits (longer = more expensive)
- Coverage amount (higher benefit = more expensive)
- Any optional riders or extra features (e.g. “own-occupation” coverage, inflation protection)
How Much Income Can You Get?
Below are sample monthly benefits based on annual salary. Actual amounts vary by plan, health, job, and provider.
Annual Salary | Max Monthly Benefit |
---|---|
$ 2,200 | $ 35,000 |
$ 2,200 | $ 50,000 |
$ 5,200 | $ 100,000 |
$ 6,600 | $ 140,000 | $ 8,500 - $ 10,000+ | $ 200,000 |
*Assumes high benefit % and favorable underwriting.

Government & Employer Coverage — Are They Enough?
Source | What They Offer | Typical Gaps |
---|---|---|
CPP (Canada Pension Plan) / QPP | Monthly disability benefits if you meet strict criteria: must be severe and prolonged. | Benefit amounts are limited. Getting eligibility is hard. Also, payments are modest compared to many people’s income. |
Group (Employer) Disability Insurance | Usually less expensive, sometimes included in benefits packages. | Often only basic coverage. If you leave your job, that protection may stop. May not cover your full income. |
Individual Disability Insurance | Tailored to you: amount, duration, waiting period, etc. | Might cost more than group plans, but you control it. |

Example: Putting It All Together
Sarah is a 35-year-old graphic designer earning $70,000 per year.
She wants enough coverage to maintain her current lifestyle if she can’t work. She chooses a policy that covers 70% of her income, with a 90-day waiting period, and benefits payable until age 65.
Her monthly premium is $120 (this is just an example).
If Sarah becomes disabled, after 90 days she’ll receive approximately $4,000/month tax-free until she either returns to work or reaches age 65.
- Critical Illness Insurance FAQs
What Should I Expect to Pay?
Costs vary a lot. Here are ballpark ranges / factors:
- For a healthy non-smoker in their mid-30s, replacing, say, 70-80 % of monthly income might cost between 1 % to 5-6 % of gross income, depending on waiting period and benefit duration.
- If you need more coverage, earlier payments, or dangerous occupation → higher premiums.
Is the income I get really tax-free?
Yes — when structured properly, disability insurance benefits received are tax-free.
What counts as “disabled”?
Policies differ. Some use “any occupation” definition, others “own occupation” (which generally pays if you can’t do your own job). Be sure to know the definition in your policy.
What if there are pre-existing conditions or mental health issues?
That depends on underwriting. Some policies exclude pre-existing conditions or offer limited
coverage. Mental health / chronic pain may have special conditions or limits.
Can I keep my coverage if I change jobs?
If it’s individual policy, yes. If it’s a group plan from an employer, you may lose some or all of it when you leave — but some group plans allow conversion to individual policies.
Next Steps — How We Help

Financial Assessment
We evaluate your complete financial situation, including debts, living expenses, dependents, and risk factors.

Best Value Comparison
We compare multiple insurers to ensure you get the best combination of coverage amount, price, and flexibility.

Clear Understanding
We help you understand the fine print, such as waiting periods, definitions of disability, and benefit periods.

Claims Support
If needed, we assist you in filing claims, so you don’t have to navigate the process alone.
Protect Your Income
Don’t leave your income to chance. A disability can happen to anyone.
Let’s make sure you and your family are protected, no matter what.