Disability Insurance in Canada

Short-Term & Long-Term Income Protection Guide 2026. Your ability to earn income is your most valuable asset. Protect it if illness or injury prevents you from working.

Protect Your Largest Asset

For most Canadians, their future earnings are worth millions of dollars. Disability insurance ensures that if your body can't work, your bank account still does.

50% – 70%

Income Replacement

Age 65

Maximum Coverage Age

Tax-Free

Benefits in most cases

Coverage Solutions

Immediate Support

Short-Term Disability

Best for temporary injuries, surgery recovery, and short-term illnesses.

Payout for 3, 6, or 12 months
Short waiting periods (0–30 days)
Bridge to long-term coverage

Perfect for covering recovery after minor accidents or planned surgeries.

Lifetime Earning Security

Long-Term Disability

The ultimate firewall against serious illness or permanent injury.

Benefit periods: 2, 5 yrs or to age 65
Protection for self-employed professionals
Replaces 50%–70% of gross income

Statistics show LTD is more likely than premature death during working years.

Comparison Matrix

Feature	Short-Term Disability	Long-Term Disability
Duration	Up to 12 months	2 years to age 65
Waiting Period	0–30 days	60–180 days typical
Income Protection	Partial (immediate)	Partial (long duration)
Best For	Temporary recovery	Serious illness/injury

Critical Policy Features

Own vs Any Occupation

Own Occupation: Pays if you cannot perform YOUR specific job duties.

Any Occupation: Pays only if you cannot perform ANY job for which you are suited.

Elimination Period

The waiting period (30, 60, 90, 120+ days) before benefit payments begin. Align this with your emergency savings to optimize premiums.

Benefit Period

How long you will receive payments. Options range from 2 years up to age 65. Longer periods provide stronger protection for permanent conditions.

Who Needs Protection Most?

Self-Employed: Professionals with no employer net.
Business Owners: To cover overhead and personal income.
Primary Earners: Whose families rely solely on them.
High-Income Earners: Protecting lifestyles and investments.

Estimated Costs (2026)

Coverage Type	Monthly Premium Range
Short-Term Disability	$40 – $120
Long-Term Disability	$80 – $300+

*Premiums vary based on occupation risk, age, smoking status, and chosen policy options.

Smart Tips for Coverage

Career AlignmentChoose "Own Occupation" if your career requires specialized skills.
Savings StrategyLonger waiting periods (90 days) can lower premiums by up to 40%.
Early ApplicationApply while healthy to avoid exclusions for pre-existing conditions.

Common Mistakes

Assuming government EI is sufficient
Choosing minimum benefit periods
Ignoring mental health coverage clauses

Frequently Asked Questions

Yes. Your ability to earn income is your largest asset. Protecting it is critical, especially if you are self-employed or don't have employer-sponsored benefits. Statistics show disability is more likely than premature death during working years.

It can last 2 years, 5 years, or until you reach age 65, depending on the policy you choose during application.

Many modern policies do cover mental health conditions, though definitions and limitations can vary between providers. We help you choose plans with robust mental health protection.

Employment Insurance (EI) sickness benefits only provide limited short-term support (up to 26 weeks) and may not replace enough of your income to cover all your household expenses.

Secure Your Future Income

Don't leave your family's stability to chance. Our certified advisors will help you build a bulletproof income protection plan.