Disability insurance works when you can’t. It can give you tax-free monthly income to help pay expenses if an illness or accident stops you from working.
Payments replace part of your paycheque each month.
Guaranteed rates for your coverage until age 65.
Customize your plan to suit your personal needs.
It can give you a tax-free monthly payment to help replace your income and cover your expenses if an illness or injury keeps you from working. While a disability can often be visible to the naked eye, not all disabilities are so easily recognized. Chronic pain or a mental health issue can also qualify as a disability.
Your ability to earn an income over a 30- or 40-year career, is your most valuable asset. Here’s an idea of what you could earn over the rest of your working life based on your age and current salary. This chart assumes a 2.5% raise every year and that you’re working to age 65.
Premiums often range from 1% to 9% of your salary, but each case is different. Here are some factors that can affect cost:
The more you’d like to receive, the more it will cost.
It’ll cost more the longer you want to receive payments.
Your premiums will be less expensive if you’re willing to wait longer to receive payments.
Disability insurance may be less expensive when you’re young.
Your costs will be lower the healthier you are.
If you have a dangerous job, your premiums can be higher.
The following chart shows the maximum amount you could receive tax-free each month if you faced a disability. These are just estimates – the amount you’d actually receive depends on specific circumstances, like your age and occupation.
You can get disability coverage through the Canada Pension Plan (CPP) and Quebec Pension Plan (QPP) but they provide limited benefits.
You must “have a severe and prolonged mental or physical disability” to qualify for CPP disability benefits. You may be able to get disability coverage through us under a more relaxed definition.
The CPP’s average monthly benefit is $966.43 and the maximum in 2019 was $1,362.30.
Group insurance is a great start, but it usually only provides limited, basic coverage. A personal disability policy complements group insurance – together, they can help protect you, your family and your lifestyle should the worst happen.
