Your ability to earn an income is one of your greatest assets — and disability insurance is designed to protect it. If you get sick or injured and can’t work, disability insurance pays a monthly benefit to help replace lost income.
Types of Disability Insurance
- Short-Term Disability (STD): Usually lasts a few months (often through employer plans)
- Long-Term Disability (LTD): Kicks in after STD ends and can last for years
What It Covers
It pays a portion of your income (usually 60–85%) if you’re unable to work due to:
- Injury
- Illness (including mental health conditions)
- Recovery from surgery
Who Needs It?
Everyone who relies on their income — especially:
- Self-employed individuals
- Freelancers
- People without employer benefits
What to Look For
- Own-occupation coverage (pays if you can’t work your specific job)
- Elimination periods (how long you wait before benefits start)
- Benefit duration and tax implications
Should I use a Broker
Using a broker for disability insurance in Canada is important for several reasons:
- Expert Guidance: Disability insurance can be complex, with varying coverage options, terms, and exclusions. Brokers are experts who can help navigate these complexities, ensuring you understand the policy’s fine print and choose the best one for your needs.
- Access to Multiple Providers: Brokers have access to a wide range of insurance providers, which means they can compare policies from multiple companies. This gives you more choices and increases the likelihood of finding the most competitive rate and comprehensive coverage for your specific situation.
- Personalized Recommendations: Brokers take the time to assess your unique circumstances, including your occupation, health, and financial situation. They can recommend policies tailored to your specific needs, ensuring you’re adequately protected in the event of a disability.
- Cost-Effective Solutions: A broker can help you find policies that fit your budget while still providing the necessary coverage. They can also help identify potential discounts, riders, or benefits that you might not have considered, which could reduce your premium without compromising coverage.
- Ongoing Support: A broker isn’t just there to help you purchase insurance; they also provide ongoing support throughout the life of the policy. If you need to make a claim, need advice on policy changes, or are facing any issues, your broker will act as an advocate, assisting you through the process.
- Knowledge of the Canadian Market: The Canadian insurance market has its own set of regulations, and brokers are familiar with these rules. They can ensure that the disability insurance you choose complies with Canadian laws, which may vary from provincial to provincial.
- Claims Assistance: If you ever need to file a disability claim, a broker can help you navigate the often complicated claims process. They will provide guidance on gathering necessary documentation, communicating with the insurance provider, and ensuring you meet all requirements for a successful claim.
In short, using a broker ensures you get the right coverage, at the right price, with expert guidance and support. If you would like for a licensed professional to help you explore your options, fill in a quick form below to get connected to a Canadian Insurance Broker.
Final Thought
Disability insurance isn’t a luxury — it’s income protection. Think of it as a safety net for your lifestyle, your savings, and your future.
