Disability insurance

The paycheque is the plan. Protect it.

Q: How much of my income can I cover?

Disability insurance typically covers a percentage of gross income up to insurer limits, calculated from documented income.

Q: Is the benefit taxable?

Disability benefits are generally tax-free when premiums are paid personally with after-tax dollars, while employer-paid coverage is often taxable, which affects how much coverage is needed.

Q: I have coverage at work — isn’t that enough?

Workplace group disability coverage is often capped, may be taxable, and ends with employment, so it should be reviewed for amount, duration, and portability before being relied on alone.

Q: What’s a waiting period?

The waiting or elimination period is the time between the start of a disability and the start of benefit payments; longer waiting periods reduce premiums.

Q: I’m self-employed — can I get this?

Self-employed people can obtain disability insurance and often have the greatest need, with insurers requiring income documentation and underwriting.

If illness or injury stopped you working, disability insurance replaces a portion of your income — so the mortgage, the groceries, and the RESP keep getting paid.

The basics

What is disability insurance?

It pays you a monthly benefit — typically a percentage of your income — if a covered illness or injury keeps you from working. Your ability to earn is the engine behind everything you’re building; this is the coverage that protects the engine.

Two things surprise most people: illness causes many more claims than accidents, and workplace group coverage — if you have it — is often smaller than expected and ends when the job does.

Monthly income

A portion of your earnings, paid monthly while you’re disabled, per the policy’s terms.

Illness and injury

Covers both — and it’s illness, not accidents, behind most long claims.

Yours, not your job’s

Personal coverage follows you between jobs; group plans are limited and end with employment.

How it’s built

The four dials that shape your coverage.

Every disability policy is a mix of four settings — get these right and the coverage fits like it should:

Benefit amount — how much of your income is replaced each month.
Waiting period — how long after a disability before payments start (longer wait, lower premium).
Benefit period — how long payments can continue: two years, five, or to age 65.
Definition of disability — the big one: “own occupation” vs “any occupation” changes when the policy pays.

Straight talk: the definitions matter more than the brochure. Two policies with the same price can behave completely differently at claim time — reading that fine print together is exactly what the free call is for.

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Common questions

Disability questions people ask

How much of my income can I cover?

Typically a percentage of your gross income, up to insurer limits — designed so working still pays more than claiming. We’ll calculate your insurable amount from your actual income.

Is the benefit taxable?

Generally tax-free if you paid the premiums personally with after-tax dollars. Employer-paid coverage is often taxable when it pays. That difference changes how much coverage you actually need.

I have coverage at work — isn’t that enough?

Check three things: how much it actually pays, for how long, and what happens when you change jobs. Group long-term disability is a good base, but it’s often capped, sometimes taxable, and it doesn’t come with you.

What’s a waiting period?

The time between becoming disabled and payments starting — commonly around 90 or 120 days. A longer wait lowers the premium; your emergency fund is what bridges it.

I’m self-employed — can I get this?

Yes — and you’re often the person who needs it most, since there’s no group plan behind you. Insurers will ask for proof of income, and coverage is subject to underwriting.

Let’s talk

Keep the income — and the plan — flowing.

A free, no-pressure call: your insurable income, the four dials set to fit your family, and quotes from multiple insurers — with the definitions explained in plain language.

Book a free call →

Harpreet Singh · Licensed advisor (LLQP, Ontario) · Proudly Canadian. This page is general information only — not insurance, financial, or tax advice. Disability coverage, benefit amounts, definitions, and exclusions are subject to eligibility, financial and medical underwriting, and the terms of the individual policy, and vary by insurer and occupation. Speak with a licensed advisor about what is appropriate for your situation.