Compare the best disability insurance quotes in Canada

Disability insurance is a type of life insurance product that protects you and your loved ones financially in the event you're unable to work due to illness or injury. These types of policies typically replace 60 to 85% of your regular income (up to a set amount and set period), ensuring your financial stability in a time that's already full of hardship.

In Canada, disability benefits are available for purchase from various different sources, including individual and group plans. You can also receive support from government programs if you don't have other coverage options in place.

If you're purchasing a plan individually or through your employer, you'll need to make regular payments (typically monthly) to keep your policy active. Your insurance rate will be dependent on several factors, such as your age, health status, and coverage amount.

It's also important to note that different policies may define what constitutes a disability differently. Generally speaking, there are three ways this can be done:

Own-occupation disability – Benefits are paid out if you're unable to perform the job duties of your own occupation. And if you take on another job, outside of your designated skillset, you'll still receive payment. This is especially useful for skilled professionals, such as doctors and nurses.

Regular-occupation disability – Benefits are also paid out if you're unable to perform the job duties of your own occupation. But if you choose to engage in another type of job, you may receive fewer benefits or void your payments completely.

Any-occupation disability – Benefits are only paid out if you're unable to perform the duties of any job that's reasonably suitable for you – based on age, experience, and education.

Additionally, disability insurance policies have a specified waiting period. This is the amount of time after the onset of your injury or illness in which you won't be able to receive benefits. This can range from a few weeks (for short-term disability coverage) or a few months (for long-term disability coverage).

If you do become disabled (and meet the definition outlined in your policy), you'll be eligible for benefits after the waiting period. The exact percentage of your regular income paid out will depend on your plan. And the coverage will last until you're no longer considered disabled or you've maxed out the entire time period.

According to the Canadian Life & Health Insurance Association, an average of 1 in 3 people will be disabled for 90 days or more before they turn 65 years old. A disability can last months or even years, and if you have loved ones that rely on your income or recurring bills, such as a mortgage payment, this type of coverage may be exactly what you need. Here are a few examples to better illustrate the need for disability benefits in Canada.

Generally speaking, disability insurance should cost you between 1 to 3% of your annual income – so if you make a salary of $50,000, expect to pay a premium of $500 to $1,500 each year. To find the exact number you'll be paying, be sure to compare disability insurance quotes with us today.

The price you'll be paying for your disability insurance is dependent on a number of factors – here are a few common ones you should be aware of to better understand how insurers calculate your quote.

While there is no one-size-fits-all figure, most disability insurance plans should replace between 60 to 85% of your regular income. Here are a few questions you can ask to help determine the right amount for yourself. And for more guidance, be sure to consult a licensed life insurance broker in Canada.

Another life insurance product you may be interested in is critical illness insurance. This type of coverage protects you financially in the event you're diagnosed with a specified illness. Let's take a look at a few key differences in the table below.