Disability Insurance in Canada: What You Need to Know

You can purchase various insurances, and different insurances have their own coverage in emergencies in your life. If you rely on your income to support yourself and your family, you might want to consider purchasing disability insurance.

What is Disability Insurance?

It is a type of insurance policy that provides income replacement to injured or sick individuals who cannot work. It is designed to cover your living expenses, medical bills, and other expenses that may arise when you cannot work.

This policy is available in both short-term and long-term coverage options.

Short-term Disability Insurance

From the word itself, short-term covers you for a short term only. It can be for a few weeks or months, a maximum of six months.


  1. Short-term provides a shorter period, which means the premiums are generally lower than long-term.
  2. It may offer more immediate coverage for injuries or illnesses that prevent you from working for a short period.
  3. During temporary disability, a short term can maintain your current standard of living.


  1. If you need to rest for an extended period, short-term coverage may not be enough.
  2. Typically only covers a portion of your income, usually around 60-70%.
  3. Generally only covers disabilities resulting from an injury or illness, not preexisting conditions.

Long-term Disability Insurance:

Unlike short-term, long-term can cover you for years and even decades.


  1. Provides coverage for a more extended period, usually until your retirement age, or you can work again, depending on the policy.
  2. Offers more comprehensive coverage than short-term, covering a wider range of disabilities.
  3. In the case of long-term disability, long-term can help you maintain your financial stability and standard of living expenses.


  1. Higher cost than short-term
  2. May have a waiting period before benefits begin, which can vary depending on the policy.
  3. It May require medical underwriting or a medical examination, making it more challenging to qualify for coverage.

How Does Disability Insurance Work in Canada?

In Canada, disability insurance is typically offered through private insurance providers or group plans offered by your employer. The amount you pay will depend on many factors, like your age, occupation, health status, and the specific policy you choose.

You must meet the policy’s definition of disability to be covered by disability insurance. This may vary from policy to policy, but in most cases, to receive benefits, you must be unable to perform the responsibilities of your own occupation for a predetermined amount of time.

Why Do You Need Disability Insurance:

No one knows what may happen in the future. You’ll be injured or sick and unfit to do jobs; this policy will help you.

Especially if you are an individual who is dependent on their income to support themselves or their family.

If you do not have disability insurance, you may rely on savings and government programs, which may not be enough. It can give you peace of mind, knowing you’ll be protected if something unpredictable happens.

Disability Insurance vs. Government Benefits

Government benefits and disability insurance are the two primary options for financial support for individuals with disabilities. Below is the difference between the two options, which can help you choose the right option.

Amount of Coverage

Disability insurance typically provides a higher amount of coverage compared to government benefits. Individuals can get up to 60-70% of their pre-disability income with it.

While government benefits may provide a fixed amount that is usually lower.

Length of Coverage:

Disability insurance can provide coverage until retirement age, while government benefits have limited offers.


With disability insurance, individuals can choose the amount of coverage they want, the waiting period before benefits are paid out, and any additional benefits or riders they may need.

With government benefits, the coverage and benefits are usually fixed and may not be tailored to an individual’s needs.

Medical Criteria:

To qualify for government benefits, an individual must meet specific medical criteria, which can make it more challenging for some individuals to receive benefits.

With disability insurance, the medical criteria are usually less strict, making it easier for individuals with certain medical conditions to receive coverage.


The funds of government benefits are from taxpayers while disability insurance policies require individuals to pay monthly premiums. The expense of inability protection can change depending on age, well-being, and occupation.


Getting an insurance for yourself is also a part of an investment. But getting the proper insurance to invest in is also crucial. Assess your situation and consult an insurance agent to guide you and advise what insurance you should purchase.

Disability insurance is a significant thought for individuals who depend on their pay to help themselves or their loved ones. With the right coverage, you can protect yourself from the financial impact of an unexpected injury or illness.

Are you interested in purchasing insurance? Give me a call at +1 647 6999 950. here at Experior Financial, I can guide you in getting the right insurance.

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