Compare disability insurance quotes in Canada.
Disability insurance replaces your income if illness or injury prevents you from working. Protect your paycheck and maintain your family's standard of living during recovery.
Compare short-term and long-term disability insurance quotes from 50+ Canadian providers including Manulife, Canada Life, Sun Life, and RBC Insurance. Essential protection for your financial wellbeing.
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What is Disability Insurance?
Disability insurance (also called income protection insurance) provides monthly benefit payments if you're unable to work due to illness or injury. It replaces a portion of your lost income—typically 60-85% of your pre-disability earnings—so you can continue paying bills, mortgage, and living expenses during recovery.
Unlike critical illness insurance which pays a lump sum for specific conditions, disability insurance pays monthly income for any illness or injury that prevents you from performing your job duties. Coverage continues until you recover, reach the policy's maximum benefit period, or retire.
Critical Statistic
1 in 3 Canadians will experience a disability lasting 90 days or longer during their working years. Yet only 20% have disability insurance coverage.
Types of Disability Insurance
Short-Term Disability (STD)
Provides income replacement for temporary disabilities lasting weeks to months. Typical waiting periods of 7-14 days, with benefits lasting 3-6 months. Covers 60-70% of income. Ideal for recovery from surgery, injuries, or short-term illnesses.
- ✓Quick benefit start (1-2 weeks)
- ✓Covers temporary disabilities
- ✓Lower premiums than LTD
- ✓Often provided by employers
Long-Term Disability (LTD)
Provides income replacement for extended disabilities lasting months to years. Waiting periods of 90-180 days, with benefits lasting 2 years, 5 years, to age 65, or lifetime. Covers 60-70% of income. Essential for serious illnesses, major injuries, or chronic conditions.
- ✓Long-term income protection
- ✓Covers serious disabilities
- ✓Benefits to age 65 or lifetime
- ✓Crucial financial protection
Understanding "Own Occupation" vs "Any Occupation"
The definition of disability in your policy determines when benefits are paid—this is crucial.
Own Occupation
You're considered disabled if you can't perform the duties of YOUR specific occupation, even if you could work in a different field. Pays benefits if you can't do your job, regardless of other work you might be able to perform.
Example:
A surgeon who develops hand tremors can't perform surgery but could teach. Own occupation coverage pays benefits because they can't practice surgery, their specific occupation.
Any Occupation
You're only considered disabled if you can't perform ANY occupation for which you're reasonably suited by education, training, or experience. Stricter definition—harder to qualify for benefits.
Example:
The same surgeon with hand tremors wouldn't receive benefits under any occupation coverage because they could teach, consult, or do administrative medical work.
Important Note
Own occupation policies cost more but provide significantly better protection. Many policies use own occupation for the first 2 years, then switch to any occupation—read policy terms carefully.
Benefits of Disability Insurance
Monthly Income Replacement
Receive 60-85% of your pre-disability income every month, allowing you to pay mortgage, bills, and maintain your family's lifestyle during recovery.
Comprehensive Coverage
Coverage for ANY illness or injury that prevents work—not just specific conditions. Protects against accidents, illnesses, mental health conditions, and chronic diseases.
Financial Security
Prevent financial devastation during disability. Avoid depleting savings, going into debt, or losing your home when you can't work.
Family Protection
Support your family's needs during your recovery. Cover children's expenses, spouse's needs, and maintain quality of life without financial stress.
Retirement Savings Protection
Avoid withdrawing from RRSPs or TFSAs during disability. Some policies include retirement savings contributions while you're disabled.
Rehabilitation Support
Many policies include rehabilitation benefits, vocational training, and return-to-work programs to help you recover and transition back to employment.
Disability Insurance FAQs
How much does disability insurance cost?
Disability insurance typically costs 1-3% of your annual income. A 35-year-old earning $60,000/year might pay $50-100/month for long-term disability coverage. Costs depend on age, occupation, health, benefit amount, waiting period, and benefit period. Higher-risk occupations pay more.
Does my employer provide disability insurance?
Many employers offer group disability insurance, but coverage is often limited (typically 60% of salary up to a maximum). Benefits are taxable if your employer pays premiums. Individual disability insurance provides higher coverage limits, portable coverage, and tax-free benefits. Consider supplementing employer coverage.
What's the difference between disability and EI sickness benefits?
EI sickness benefits provide 55% of earnings (up to $668/week in 2026) for maximum 15 weeks. Disability insurance provides 60-85% of income for months to years, depending on your policy. DI offers much higher coverage and longer protection. EI is a temporary government program; DI is comprehensive protection.
What is the elimination period?
The elimination period (waiting period) is how long you must be disabled before benefits begin. Common periods are 30, 60, 90, or 180 days. Longer elimination periods mean lower premiums. Choose based on your emergency fund—if you have 6 months' expenses saved, select a 180-day elimination period for lower costs.
Are disability insurance benefits taxable in Canada?
If YOU pay premiums with after-tax dollars, disability benefits are TAX-FREE. If your EMPLOYER pays premiums, benefits are TAXABLE. This is a major advantage of individual disability insurance—benefits are completely tax-free, giving you more money during disability.
Can I get disability insurance if I'm self-employed?
Yes! Self-employed Canadians especially need disability insurance since they have no employer coverage or paid sick leave. Individual disability policies can be tailored to your business income, with options for overhead expense coverage to keep your business running during disability.
Protect your paycheck and your family
Compare disability insurance quotes from 50+ Canadian providers and secure your income today.