Disability Insurance Quotes
Disability insurance protects your income by paying a monthly benefit if an illness or injury prevents you from working according to the definition of disability in your policy.
For employees, professionals and self-employed Canadians, disability insurance can help replace a portion of your income and keep your financial plans on track when you cannot work.
At A Glance
- Protect your income with a monthly benefit if you become disabled due to an illness or injury
- Customize your coverage with choices for benefit amounts, waiting periods, benefit periods and optional riders
- Compare coverage from multiple insurers to find a policy that fits your occupation, income and financial needs
- Get a free quote or learn more about how disability insurance works
Get Your Disability Insurance Quote Now
My 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 is designed to protect your income if an illness or injury prevents you from working. If you meet the definition of disability in your policy, the insurer pays you a monthly benefit after your waiting period.
The benefit can help replace a portion of your income and cover everyday expenses while you are unable to work.
What does disability insurance cover?
Disability insurance can cover disabilities caused by a wide range of illnesses and injuries, including physical conditions, accidents and mental health conditions.
Whether a claim qualifies depends on the definition of disability in your policy, your medical circumstances and the evidence supporting your claim.
What can you use the disability benefits for?
You can use an individual disability insurance benefit however you choose.
The money can help pay for your mortgage, rent, food, utilities, medical expenses, debt payments, childcare and other everyday costs while you are unable to work.
Do you need disability insurance?
If you rely on your income to support yourself or your family, a prolonged disability can create a significant financial risk.
Your ability to earn an income may be one of your most valuable financial assets. Disability insurance can help protect that income if an illness or injury prevents you from working.
Are disability benefits tax-free?
Generally, benefits from an individually owned disability insurance policy are tax-free when you pay the premiums personally with after-tax dollars.
Group disability benefits can be taxable when your employer pays the premiums and claims the premiums as a business expense. The tax treatment depends on how the coverage and premiums are structured.
Learn more about whether disability insurance benefits are taxable.
Dive Deeper
Do you need disability insurance if you're covered through work?
Employer-sponsored disability coverage can provide valuable income protection, but it may not fully replace your income or offer the same features as an individual policy. Consider the monthly benefit, definition of disability, benefit period, taxation, exclusions and coverage limits.
Group coverage may also be tied to your employment and can change when you switch jobs. An individual policy can help fill coverage gaps and provide protection that stays with you when you change employers or become self-employed.
Learn more about supplemental disability insurance for group coverage.
Can you rely on government benefits like Employment Insurance (EI), Canada Pension Plan (CPP), and Workers Compensation?
Government programs can provide some financial support following a disability, but each has eligibility requirements, limitations and different definitions of disability.
EI sickness benefits are temporary, CPP disability has a strict definition and qualification process, and Workers’ Compensation generally applies only to work-related injuries or illnesses.
For many workers, these programs may not provide enough income to maintain their existing financial obligations.
Learn more about why you can’t rely on government disability benefits.
Do you need disability insurance if you're self-employed?
Self-employed Canadians may not have employer-sponsored benefits and may need to protect both their personal income and business expenses.
An individual disability policy can provide personal income protection, while business overhead expense insurance can help cover eligible business expenses if you become disabled.
Learn more about disability insurance for self-employed individuals.
Can you get disability insurance if you have pre-existing conditions?
Yes, depending on your medical history and the insurer’s underwriting guidelines.
An insurer may offer standard coverage, apply an exclusion for a specific condition, modify the coverage or decline the application. The outcome depends on factors such as your diagnosis, treatment history, current health and the insurer’s underwriting requirements.
Learn more about disability insurance with pre-existing conditions.
How long does long-term disability insurance pay benefits?
The benefit period determines how long you can receive disability benefits after a qualifying claim.
Common benefit periods include two years, five years and coverage to age 65. A longer benefit period generally provides protection against a disability that prevents you from working for many years.
Are disability insurance premiums tax-deductible?
Premiums for a personally owned disability insurance policy are not tax-deductible because the benefits are received tax-free.
Employer-sponsored group disability premiums may receive different tax treatment. The treatment depends on who owns the policy and who pays the premiums.
Learn more about whether disability insurance premiums are tax-deductible.
Do you need to undergo a medical exam when buying disability insurance?
Not necessarily. Whether you need a medical exam or other medical testing depends on factors such as your age, health history, and the amount of coverage you are applying for.
The insurer may request additional medical information, blood or urine tests, an examination or other medical records as part of the underwriting process.
How can you customize your disability policy?
Disability insurance is not one-size-fits-all. In addition to choosing your monthly benefit, you can customize your coverage based on your income, occupation and financial needs.
Benefit period: This determines how long you can receive benefits if you become disabled. Common options include two years, five years or coverage to age 65.
Waiting period: Also called the elimination period, this is how long you must be disabled before benefits begin. Common options include 90 or 120 days.
Riders: Optional riders can provide additional protection. For example, a partial disability rider can provide benefits if you are able to work but your income is reduced because of a disability. A future income option can allow you to increase your coverage later without additional medical underwriting, subject to the policy terms.
Choosing the right combination can help you build disability coverage that fits your income and financial circumstances.
How can you get disability insurance quotes?
The cost and available coverage depend on factors such as your age, occupation, income, health history and the features you choose.
You can request a personalized disability insurance quote by completing the quote form or contacting me directly at info@briansoinsurance.com. I can compare options from multiple Canadian insurance companies and help you understand the differences before you apply.
What is the difference between own occupation and any occupation?
These terms describe different definitions of total disability, with regular occupation sitting between own occupation and any occupation in terms of coverage breadth.
With an own occupation definition, you may qualify for benefits if you are unable to perform the duties of your regular occupation, even if you are working in another occupation, depending on the policy wording. It provides the broadest coverage and costs the most.
A regular occupation definition provides coverage when you are unable to perform your regular occupation, but benefits will stop if you work in another occupation. It offers a balance between coverage and cost.
With an any occupation definition, you must be unable to perform another occupation for which you are reasonably qualified through your education, training, or experience. It provides the narrowest coverage and costs the least.
Most group long-term disability (LTD) plans use a regular occupation definition initially, then change to an any occupation definition after two years. This change can create uncertainty about whether benefits will continue if you remain unable to perform your original job.
Learn more about own occupation vs. any occupation disability insurance.
How do you make a disability insurance claim?
If you become disabled, you can contact your insurer or insurance advisor to begin the claims process.
You will generally need to complete a claimant statement and provide medical information from your treating physician. The insurer will assess your claim against the policy’s definition of disability and other requirements.
If approved, benefits begin after you have satisfied the applicable waiting period.
What are the best disability insurance companies in Canada?
There is no single disability insurance company that is right for everyone. Different insurers offer different definitions of disability, policy guarantees, riders, underwriting approaches and coverage options.
When comparing insurers, it is important to look beyond the premium and consider the definition of disability, contract guarantees, benefit period, occupation class, exclusions and available riders.
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.
Do you need both disability and critical illness insurance?
Both are living benefits, but they protect against different financial risks.
Disability insurance generally pays a monthly benefit when an illness or injury prevents you from working according to the policy’s definition of disability. Critical illness insurance generally pays a lump sum when you are diagnosed with a covered condition and meet the policy’s requirements.
The two types of coverage can complement each other because they address different financial needs.
| Critical Illness Insurance | Disability Insurance | |
|---|---|---|
| Pays Out When | You are diagnosed with a covered critical illness and meet the policy requirements | An illness or injury prevents you from working according to the policy’s definition of disability |
| Type Of Benefit | One-time lump sum payment | Monthly income-replacement benefit |
| Who Can Apply | Individuals, including employees and self-employed people | Employees and self-employed people |
| Coverage Period | Depending on the policy, coverage may be available to a specified age, including age 100 | Typically available to a specified age, often age 65 |
| How You Can Use The Benefit | Any purpose, including living expenses, mortgage payments, medical costs or recovery expenses | Intended to replace a portion of your income while you are disabled |
| Tax Treatment | Tax-free when paid to an individual and policy requirements are met | Tax-free when premiums are paid personally |
What is the difference between short-term and long-term disability insurance?
Short-term disability insurance is designed to cover a shorter absence from work, usually lasting up to four to six months. Employers typically offer short-term disability insurance as part of their group benefits package.
Long-term disability insurance provides income protection for a more extended disability. Benefits typically start after a 90 or 120-day waiting period and can pay for several years or to a specific age, like 65.
| Feature | Short-Term Disability (STD) | Long-Term Disability (LTD) |
|---|---|---|
| Primary Purpose | Covers temporary absences like surgeries, minor injuries, or acute illnesses. | Protects your lifestyle from chronic conditions, severe trauma, or permanent disability. |
| Benefit Duration | 15 to 26 weeks (roughly 4 to 6 months). | 2 years, 5 years, or until age 65. |
| Waiting Period | Between 0 and 14 days. | Ranges from 90 to 180 days (3 to 6 months). |
| Income Replaced | Usually between 60% to 70% of your income up to a weekly cap. | Usually between 60% to 85% of your income up to a monthly cap. |
| Typical Source | Almost exclusively found through employer group plans. | Available through employer group plans or private individual policies. |
| Payment Frequency | Weekly | Monthly |
| Taxability | Taxable if employer-paid; tax-free if you pay 100% of the premium with after-tax dollars. | Same as STD; however, individual private LTD plans are tax-free. |
Do you need both disability and life insurance?
Disability and life insurance protect against different financial risks.
Life insurance provides a death benefit to your beneficiaries if you die. Disability insurance provides income protection while you are alive but unable to work because of an illness or injury.
If you rely on your income, having life insurance does not replace the need for disability coverage.
Should you get mortgage disability insurance when buying a home?
Mortgage disability insurance is designed specifically to help make your mortgage payments if you become disabled. The benefit is generally tied to the mortgage and paid to the lender.
An individually owned disability policy can provide broader income protection, with benefits paid directly to you and available for mortgage payments, living expenses and other financial needs.
Should you buy disability insurance directly from the insurance company?
You can purchase some insurance products directly from an insurer, but direct-to-consumer disability coverage may offer fewer options than working with an advisor who can compare multiple insurers.
Disability policies can differ significantly in their definitions of disability, contract guarantees, occupation classes, benefit periods and optional riders.
Working with an independent advisor can give you access to multiple insurers and help you compare the coverage rather than simply comparing premiums.
What is business overhead expense insurance?
Business overhead expense insurance is designed to help cover eligible business expenses if a self-employed professional or business owner becomes disabled.
Depending on the policy, covered expenses can include items such as office rent, utilities, employee salaries and other ongoing business costs. This coverage is separate from personal disability insurance, which is designed to replace your personal income.
Frequently Asked Questions
Is disability insurance worth it?
Disability insurance can protect years or decades of future income if an illness or injury prevents you from working. Some long-term disabilities can become permanent, meaning a claim could potentially continue for many years.
As a result, a disability insurance policy can potentially pay hundreds of thousands or even millions of dollars in benefits over the course of a long-term claim. This is one reason the value of disability insurance can extend far beyond the monthly premium you pay for the coverage.
How much disability insurance do you need?
The amount of disability insurance you need depends on your income, monthly expenses, existing coverage and other sources of disability income.
You generally cannot insure 100% of your income. Insurers limit the amount of coverage available to help ensure there remains a financial incentive to return to work.
The goal is to have enough monthly income to cover your essential expenses and maintain your financial obligations if you cannot work.
How much does disability insurance cost?
The cost of disability insurance depends on factors such as your age, gender, occupation, income, health, smoking status, benefit amount, waiting period, benefit period and policy features.
Occupation has a particularly significant effect because some jobs have a higher risk of injury or disability than others.
Learn more about factors that affect how much disability insurance costs.
What if you change jobs?
An individually owned disability policy stays with you when you change employers, provided you continue paying the premiums and keep the policy in force.
This can be particularly valuable if your new employer has different or less comprehensive disability benefits.
Can you work in another job while receiving disability benefits?
It depends on the definition of disability in your policy.
Own occupation policies allows you to receive benefits if you are unable to perform your regular occupation but are working in another occupation. Other policies may eliminate benefits depending on whether you are earning income elsewhere.
The exact wording of your policy is important.
Can disability insurance cover mental health conditions?
Yes. Most disability insurance policies cover mental health conditions, although some lower-cost products may specifically exclude them.
If you have a pre-existing mental health condition, such as anxiety or depression, coverage for that condition will most likely be excluded. However, the underwriter will consider factors such as the severity of the condition, treatment history, medication, and other factors when determining whether an exclusion applies.
Can disability insurance cover pregnancy?
Disability insurance can provide benefits for a disability related to pregnancy when the claim meets the policy’s definition of disability.
Normal pregnancy and childbirth are generally not considered disabilities by themselves, but complications or medical conditions may qualify depending on the policy and circumstances.
What happens if you stop paying your disability insurance premiums?
If you stop paying premiums on an individually owned disability policy, the policy can eventually lapse and your coverage will end.
Some policies may have a grace period or other provisions, so you should review your contract before stopping payments.
How do you choose the right disability insurance policy?
The right policy depends on your occupation, income, financial obligations, existing coverage and the level of protection you want.
Important features to compare include the definition of disability, monthly benefit, benefit period, waiting period, contract guarantees, exclusions, occupation class and optional riders.
Why Work With An Independent Insurance Advisor
Buying disability insurance isn’t simply about finding the lowest premium. Different insurers can offer significantly different definitions of disability, contract guarantees, occupation classes, benefit periods, underwriting requirements and optional riders.
As an independent insurance advisor, I can help you:
- Assess how much coverage you may need based on your income, expenses and existing benefits
- Compare disability insurance solutions from multiple Canadian insurance companies
- Understand the differences between policies, including own-occupation and other definitions of disability
- Compare premiums and policy features, including waiting periods, benefit periods and optional riders
- Identify insurers and products that may be better suited to your occupation, health history and financial needs
- Navigate the medical underwriting and application process and help you understand what information the insurer may require
- Review your coverage over time as your income, occupation, employer benefits and financial circumstances change
The goal isn’t simply to find a disability policy. It’s to help you understand what you’re buying and how the coverage fits into your overall income protection strategy.
What's the next step?
You can request a personalized disability insurance quote or book a free, no-obligation consultation to discuss your coverage needs.