Disability Insurance Quotes
- Get a tax-free benefit every month while you can't work because of an injury or illness up to age 65.
- Available for ages 18-65 and all types of occupations.
- Get your free quotation now or learn more about how it works.
Get Your Disability Insurance Quote Now
Our Simple Process
1. Learn
Arm yourself with the knowledge you need to make the right decision and learn all there is to know about disability insurance.
2. Consult
Take advantage of our free no-obligation consultation and let us help you find the best policy.
3. Apply
Apply online and get covered instantly!
4. Servicing
We're here to provide ongoing support with your policy, including changes, assisting with claims, and more!
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The Basics
What is disability insurance?
Disability insurance protects your income by paying you a tax-free monthly benefit for as long as you can’t perform your job duties due to an injury or illness. In essence, it protects your income when you need it most.
What does disability insurance cover?
Whether you get into a car accident or are struggling with mental illness, disability insurance covers a wide range of situations. As long as your condition makes you unable to work for an extended period, you will receive benefits.
What can you use the disability benefits for?
Anything you want. The insurance company deposits the disability payments directly into your bank account at the same time every month. You can use these for everyday expenses like mortgage payments, medical bills, living expenses, and more.
Do you need disability insurance?
If you’re a working Canadian and rely on your income to support your lifestyle, the answer is a resounding “yes”. Your most valuable asset is your ability to earn an income, and it’s essential to protect this asset.
Are disability benefits tax-free?
Yes—for an individual disability insurance policy. That’s because you pay for the disability insurance premiums with after-tax dollars.
Because premiums are tax-deductible for the employer for group LTD, disability benefits are taxable if your employer pays for your coverage.
Learn more about whether disability insurance benefits are taxable.
How much disability insurance do you need?
Since the purpose of disability insurance is to replace lost income when you can’t work, you should aim for that amount. However, insurance companies don’t let you buy up to 100% of your monthly income. That’s because it wants to give you some financial incentives to return to work. Either way, you need enough monthly benefits to cover your everyday expenses.
Is disability insurance worth it?
Disability insurance premiums cost around 1-3% of your annual income. Considering you can get millions of dollars in benefits tax-free*, that’s a small price to pay to protect your income.
*Based on a 20-year disability claim with a monthly benefit of $5,000, increasing 3% every year.
Dive Deeper
Do you need disability insurance if you're covered through work?
It depends. Many Canadians have group disability coverage through their employer. If you plan to stay long-term and your employer provides strong disability benefits—that it won’t cut to save costs—your group insurance might be enough.
However, your career doesn’t always work out that way. You might change jobs, start your own business, or even retrain for a new career. Whatever the case, you want to make sure you protect your income through different phases of life. That’s where an individual disability insurance policy can help.
Learn more about why you need supplemental disability insurance for group coverage.
Can you rely on government benefits like Employment Insurance (EI), Canada Pension Plan (CPP), and Workers Compensation?
Unfortunately, if you’re relying on government benefits, you’ll be disappointed. The three main programs are EI sickness benefits, CPP disability benefits, and Workers’ Compensation. Between them, there are many downsides, from insufficient benefits to your ailments not being covered at all.
Learn more about why you can’t rely on government disability benefits.
What if you're self-employed?
We understand that self-employed Canadians also have to look out for their business on top of their personal life if a disability strikes. That’s why we also offer disability insurance plans that cover business expenses so that when you’re ready to return to work, your business will be ready for you.
These disability plans usually have a shorter waiting period before disability payments begin. These disability insurance policies are tax-deductible, providing you with coverage and a tax break.
Learn more about disability insurance for self-employed individuals.
Can you get disability insurance if you have pre-existing conditions?
If you have a medical condition, the insurance company will probably offer you coverage with an exclusion for the condition. For example, if you have back pain, the insurance company won’t provide any coverage for disabilities that arise from back pain complications.
Learn more about getting disability insurance with pre-existing conditions.
How long does long-term disability insurance last?
The benefit period is the number of years that your benefits last. Benefit periods last from two years to age 65. Although the shortest benefit period costs the least, you’ll want to choose the longest one to protect yourself from a permanent long-term disability. This covers you to age 65 and has the potential to pay you millions in disability benefits to replace lost income.
How can you buy disability insurance?
There are three ways to buy disability insurance, through your employer/association, directly from the insurance company, or through an insurance advisor.
With the first option, you lose your coverage if you decide to change jobs. The second option gives you worse coverage at a higher price. Only by buying through an insurance advisor will you get the best coverage at a reasonable price that you can keep for life—no matter where your career takes you.
Are disability insurance premiums tax-deductible?
Because you receive the benefits tax-free, the premiums you pay for a personal disability policy don’t qualify for a tax deduction.
However, disability insurance premiums are tax-deductible for employer-paid group LTD.
Learn more about whether disability insurance premiums are tax-deductible.
How much does disability insurance cost?
Disability insurance policies vary widely in cost. The premium depends on factors like your age, gender, smoking status, occupation, and more. Disability insurance costs more if you are older when you buy it. Likewise, coverage is more expensive for smokers and women. If your work involves more physical labour like a construction worker, prepare to pay more for disability coverage.
In general, you can budget 1-3% of your annual income for disability insurance premiums.
Learn more about factors that affect how much disability insurance costs.
Do you need to undergo a medical exam?
Unless you’re buying a large amount of monthly indemnity, the medical exam is not mandatory. However, the underwriter reviews each case separately. If it determines that it needs more information about your health that it can only get with a lab test, you will have to get one done.
How can you customize your disability policy?
No disability policy is one-size-fits-all. Besides the monthly benefit, you can also tailor your income protection plan with these choices:
Benefit period: This refers to the number of years that you receive benefits if you become disabled. Most disability plans let you choose to get payments until age 65.
Waiting period: Also known as the elimination period, this is how long you have to wait before your disability benefit begins. The most common elimination periods are 90 or 120 days.
Riders: You can add a partial disability rider so that insurance providers will pay a percentage of the monthly income if you’re not totally disabled. There’s also the future income option, which lets you increase your disability benefit in the future without having to qualify medically. Upgrade your policy with these riders and more so that it’s bulletproof.
How can you get disability insurance quotes?
Because of the factors that affect the cost of long-term disability insurance, you can request a customized disability insurance quote by filling out the form below or emailing us at info@briansoinsurance.com.
Which is better: own occupation or any occupation?
These refer to the definition of total disability in your policy. With own occupation, you receive benefits while you’re totally disabled in your primary occupation, even if you’re working in another gainful occupation.
With any occupation, you are not considered totally disabled if you can perform the duties of another gainful occupation for which you are qualified based on your training, education, and experience. That means even if you are totally disabled in your own job, your benefits will stop.
Learn more about own occupation vs. any occupation disability insurance.
How do you make a disability insurance claim?
Disability claims involve completing several forms to prove the severity of your disability. You can fill out the first one, which includes personal information like your name, occupation, and details of the disability.
Your attending physician completes the second form, which provides more details of your diagnosis and treatment. Once approved, you will start receiving benefits after you fulfill your waiting period.
What are the best disability insurance companies in Canada?
The three best insurance companies for disability insurance in Canada are Manulife, RBC Insurance, and Canada Life. That’s because only these companies provide the best coverage and guarantees for policyowners. They all offer non-cancellable policies, meaning they can’t cancel your policy or increase your disability insurance premiums.
Besides these, many life insurance companies like Desjardins and iA Financial Group also offer disability insurance policies with competitive rates. However, their products are a step below in terms of the guarantees they offer. For example, their insurance policies are guaranteed renewable, meaning they can increase your premium at any time.
Learn more about the best disability insurance companies in Canada.
Read our RBC disability insurance review.
Read our Canada Life disability insurance review.
Read our Manulife disability insurance review.
Read our iA Financial Group disability insurance review.
Read our Desjardins disability insurance review.
Read our Humania disability insurance review.
How is disability insurance different from critical illness insurance?
Disability and critical illness insurance are similar, although not the same. Disability insurance pays you a stream of monthly benefits when you can’t work because of injury or illness. In contrast, critical illness insurance pays a lump sum benefit if you are diagnosed with a significant illness covered by the policy.
Although both are important, you’ll want to prioritize disability insurance since it’s the one that gives you income protection if you’re disabled long-term.
Critical illness insurance | Disability insurance | |
|---|---|---|
Pays out if | You are diagnosed with a covered condition and live beyond the survival period | You are unable to work in your job due to an injury or illness |
Type of payout | One-time lump sum | Monthly benefit |
Who can apply | Anyone | Employed and self-employed people |
Coverage term | Up to age 100 | Up to age 65 |
Taxability | Tax-free | Tax-free |
What is the difference between short-term and long-term disability insurance?
Short-term disability insurance covers absences from work that are shorter, usually lasting up to six months. Employers typically offer short-term disability insurance as part of their group insurance package.
Long-term disability insurance starts after a waiting period of 90 or 120 days and lasts for up to age 65. It protects you from a financial catastrophe in case of a long-term disability. Short-term disability insurance bridges the gap between your disability and long-term disability benefits.
Short-term disability insurance | Long-term disability insurance | |
|---|---|---|
Benefit period | Up to 26 weeks | Up to age 65 |
Waiting period | 1-14 days | 90 or 120 days |
What it covers | Accidents and illnesses | Accidents and illnesses |
Do you need both disability and life insurance?
If you want to provide for your family if you pass away, you need term life insurance. It pays a tax-free lump sum amount to your family as financial protection. You can also get a permanent life insurance policy for tax-advantaged savings. While life insurance takes care of your family if you’re not around, it does nothing if you’re alive but disabled.
That’s where disability insurance shines. Unlike life insurance, disability coverage is a living benefit, meaning you can use the monthly benefit to replace lost income while you’re alive. If you don’t have dependents, disability coverage is more important.
Should you get mortgage disability insurance when buying a home?
Mortgage disability insurance is similar to long-term disability insurance. The main exceptions are it only covers your mortgage payments, and the disability benefit goes to your lender. While it provides some financial protection, it doesn’t replace lost income, so it’s not as beneficial as long-term disability insurance.
Should you buy disability insurance directly from the insurance company?
While it might be quicker to buy from an insurance company online, that’s not your best option. Disability insurance plans sold directly online have limited coverage. Also, the premiums are higher, resulting in you overpaying for an inferior policy.
The better option is to buy it through an insurance advisor who looks out for your best interest and wants to get you the best policy.
What is business overhead expense insurance?
If you’re a self-employed professional or a business owner, you will need two disability insurance policies: one to cover your personal expenses and one to cover your business expenses. The latter is what business overhead expense insurance does.
It reimburses your overhead expenses so that your business stays afloat while you’re disabled. Covered expenses include rent, employees’ salary, utilities, and more.
Frequently Asked Questions
Why use Brian So Insurance?
We offer disability policies from many insurance providers, letting us shop for the right coverage for income protection. Besides that, we help you decide how much disability insurance you need and provide free disability insurance quotes. Last but not least, we guide you through the underwriting process, so there are no surprises when you apply.
How does Brian So Insurance make money?
When you get disability insurance coverage from us, the insurance company pays us a commission. That means you don’t have to pay us for our service or advice. It’s a win-win situation.
What's the next step?
After you’re done reading the resources on our site, you can schedule a free consultation here. We’ll take down some basic information during the meeting, review it, and come up with our recommendation for the best disability insurance coverage to protect your income.
Alternatively, you can fill in the form below, and we can provide a disability insurance quote within 24 hours. Disability insurance doesn’t get much quicker than that!
Once you’re ready to proceed, you can apply online.
What else do you need to know?
Only an individual disability policy protects against the financial stress of a total disability. It puts the anxiety of losing your income in the rearview mirror, so you can focus on what’s most important—recovering and returning to an active life.
Take the next step to protect your greatest asset today.
