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Disability Insurance

What is Disability Insurance?

We’re sure you have had loved ones, friends, or co-workers suffer from an accident or illness that prevented them from working for weeks or maybe even months. When unexpected events occur, it’s difficult to watch people struggle financially due to loss of income. It’s much more difficult to accept if the person is you or your family member. What will a loss of income mean to you and your family? It would most likely be unpleasant, irritating, and even frightening. The great news is that Long-term Disability Insurance benefits will fill a gap in your cash flow.

Your home, vehicle, or retirement fund aren’t your most important assets. The most important asset you have is your ability to earn a living. If you are unable to work for a long period of time due to illness or accident, disability benefits will cover most of your lost wages. If you are young and healthy, it’s easier to get disability insurance, but if you are older or have a pre-existing condition, you may face higher premiums or even be denied coverage.

Disability Insurance and benefits do not just cover unusual incidents.  Many claims are for health issues you may not recognize as impairments, such as physical injuries, stress, cardiac arrest, cancer, or any event that your doctor requires you to have bed rest or time off from work.

What is Disability Insurance?

This may happen to anybody, at any time, in any job. It’s not uncommon that your employer may offer Group Insurance disability benefits for their employees. If your work is primarily a sedentary desk job you may feel the likelihood of missed weeks or months of work due to an injury may seem improbable but stress and illness is very common amongst office workers.

Types of Disability Insurance

As the name implies, Short-term Disability Insurance is just that: short-term in nature. They have a very short waiting period that may be as little as a day or a week to two weeks before benefits commence and will last for just 16 or 17 weeks.

Alternatively, you could save three to six months in cash reserves to pay expenditures, and create your own Short-term Disability emergency fund! If you are sick or hurt and have to miss a few weeks of work, this emergency fund would help your short-term income disruption until you get well enough to return to work.

Short-term and Long-term Disability Insurance are the two primary types of Disability Insurance. During incapacity, both programs replace a percentage of your monthly basic pay up to a maximum of ⅔ of your income. After being on claim for a longer-term, some carriers will pay for extra services, like training to go back into the workforce.

A plan that no one should be without is a Long-term Disability policy (LTD). The phrase “long-term” refers to the benefit period of two years, five years or to age 65. In addition, some carriers will provide coverage and pay Tax-Free disability benefits past the age of 65. In the event that you take out your own insurance, coverage will follow you from one employer to the next. As the name implies, Long-term Disability Insurance is just that: long-term in nature. They have a longer waiting period that may be 30 days, 60 days, 90 days, 120 days or even longer, before benefits commence and will last for at least 2 years, 5 years, to age 65 or longer.

Looking at the figures, Long-term Disability Insurance is a necessary benefit for your financial future. If you want to protect yourself against long-term income loss, we recommend purchasing coverage for at least 5 years or longer.

How Do Insurance Companies Define Disability?

When it comes to insurance policies, understanding the terms and conditions can seem daunting. This is especially true in the case of disability insurance. Insurance companies look at various factors to determine the definition of disability. Generally, they classify disability as being unable to perform your job due to an illness or injury. However, there are varying degrees of disability, such as partial or total disability. Insurance companies may also take into consideration the amount of lost income due to the individual’s disability. This definition may vary from the definition used by the Canada Pension Plan or partial disability benefits. It’s important to understand the insurer’s definition of disability before purchasing a policy to ensure that all your needs are taken into account.

Do You Need A Disability Insurance Policy?

A woman sitting at a desk laughing with a senior man in a wheelchair

Disability insurance, or income protection, offers valuable monthly benefits if illness or injury prevents you from working. This coverage ensures a steady income for expenses like mortgages and bills, providing financial security and peace of mind for you and your loved ones. Secure your future with disability insurance as a safety net against unforeseen setbacks.

How Much Disability Insurance Costs In Canada?

Disability coverage is an essential form of insurance that provides financial protection to individuals who experience a loss of income due to a disability. If you reside in Canada, there are numerous life insurance companies from which you can purchase disability insurance. The cost of the disability insurance premiums can vary, depending on factors such as your age, health, occupation, and the amount of coverage you require. However, the peace of mind that comes with having disability insurance is invaluable, particularly in the event of an unexpected disability. With disability insurance, you will have access to a living benefit, which can help to cover your financial obligations when you are unable to work. Be sure to compare quotes from various insurance providers to find an answer to your question “how much disability insurance costs” and the policy that best suits your needs and budget.

Benefits of Disability Insurance in Canada.

Many Canadians received benefits from various Covid-19 income benefits like CERB. Where would families be financially if the government hadn’t stepped in with company loans and income subsidization plans during the Covid lockdowns. We all know many friends and relatives that received these benefits. Maybe you received Covid benefits yourself. Disability benefits work the same way. In the unfortunate event that you lose your job due to accident or sickness you can make a claim and receive benefits.

If you are involved in an accident or suffer an injury or illness, your Health Insurance will most likely support your medical expenses. People frequently overlook the need to prepare for scenarios in which they are physically unable to work. Preparing ahead of time for a financial crisis can help to mitigate the danger of economic catastrophe. Many see this disability plan as accident or sickness benefits which covers most of their living expenses. Just like Employment Insurance, Disability Insurance plans protect a loss of income within the benefit period. It guarantees continuous sick leave benefits for your family and household. Without regard to age or working conditions, we all need Disability Insurance.

Benefits of Disability Insurance

When a client owns a business, budgeting, marketing, and risk mitigation are extremely crucial. Replacing the owner or a key person may cause severe hardship to the business. The last thing a business can afford is paying the key employees income while suffering the loss of revenue to the business. The loss of their working contributions will put stress on the business and banking relationships. A disability policy is a critical risk management tool for small company owners and self-employed individuals.

Does Term Life Insurance Cover Disability?

Understanding whether or not this type of coverage provides protection against disability can be confusing. It’s a valuable question to consider if you are buying life insurance. Before exploring the answer, it is important to identify what term life insurance is and how it works. Term life is the most basic and affordable type of life insurance contract that provides death benefit payouts to your beneficiaries if you pass away during a specific period of time. Depending on the policy, term explains usually last anywhere from 10 to 30 years. This means that if you had a 10 year policy and continued living past that 10 year mark, the benefits would no longer be in effect. So, returning to the original question – does term life insurance cover disability? In short, no; this type of coverage solely provides death benefit protection.

Disability Insurance for Businesses: Safeguarding Your Enterprise

For clients who own a business, effective budgeting, marketing, and risk mitigation are of utmost importance. The replacement of an owner or key personnel can lead to significant challenges for the business. It becomes even more difficult for a business to bear the cost of paying the key employees’ salary while simultaneously experiencing a decline in revenue. The absence of their valuable contributions can strain both the business operations and banking relationships.

In such situations, a disability policy serves as a vital risk management tool for small business owners and self-employed individuals. This type of insurance helps protect the business by providing financial support in the event of a temporary or permanent disability affecting the owner or a crucial team member. With a disability policy in place, businesses can maintain stability, safeguard their financial interests, and ensure continuity during challenging times.

Why is Experior Financial the best option?

For both Short-term and Long-term Disability Insurance, rates can vary depending on the kind of policy, elimination period, length of benefit, insured age and status of health. A non-cancellable Disability Insurance plan, as the name implies, cannot be cancelled by the insurance provider, no matter if your health changes.

Our associates understand the importance of the disability benefit and want our clients to have the best Disability Insurance policy in any accident or illness situation. Working with our professionals, we guarantee the right Disability Insurance benefits with the lowest quotes from different insurance companies.


Yes, for example, Short-term Disability Insurance can be purchased privately rather than via your employer under group coverage. Individual Disability Insurance is also a good option for those who do not have access to disability coverage through their employer and it is a viable choice for middle to high income earners looking for additional Tax-Free benefits. Make contact with a life insurance broker or an independent agency like Experior Financial Group to find out more.  

There are different kinds of benefits of a Disability Insurance policy. Most commonly they are benefits based on income regardless of whether you are employed or self-employed. This disability coverage type requires a certain number of working hours. There is also another type of insurance which doesn’t depend on income. These benefits can be part of a life insurance policy that provides coverage for debt payment, mortgage or total credit card payments. A life insurance policy may have disability riders that can be purchased from the insurance company as options to add this coverage at the time of application.

In many cases, you can expect the cost of Disability Insurance to be between 1 and 3 percent of your gross income. If you have a disability that results in a loss of income, that Disability Insurance can provide you with enough money until you are fully recovered and back to work. For the majority of people, Disability Insurance ends up being a very good investment. There are a few things you can do to make Disability Insurance more affordable for you. You can shop around for different plans, purchase less coverage features, get disability insurance through your employer, and improve your health. Or purchase a plan that contains a return of premium option that will refund premiums at a point in the future if you don’t make a claim. That way you can’t lose.

Disability Insurance coverage doesn’t need to be pricey, and if you become ill or disabled and unable to work, it may end up being a lifeline of revenue. This protects the policyholder while they recover and require an income to pay their bills. When you’re healthy, the cost of Disability Insurance is an expense. When you’re disabled and suffering from an illness or injury, the cost of Disability Insurance is the best investment you ever made! Disability benefits pay out if small business owners are unable to work, regardless of whether or not the illness or accident was sustained during the job. In this situation, it functions as income replacement which is collected as monthly income. Disability benefits are received tax-free.

If designed properly by your employer, Group disability benefits are not usually taxed. Company-paid expenses for Group Insurance plans are deductible as business expenses by the company and are a taxable benefit to the employee, which is why it is not a taxable benefit when received as income.

If you’re living with a disability in Canada, you may be wondering if your disability insurance is taxable. The good news is that a tax-free monthly benefit is available to those accepted for disability insurance coverage. This benefit helps to replace lost income due to a disability and is not subject to income tax. It’s important to note that the Canada Pension Plan (CPP) disability benefit is NOT a tax-free benefit. Another option available to those with disability insurance is the future income option, which allows the insured to increase their benefit coverage without having to requalify medically.  Another option available is COLA, which increases the monthly benefits to keep up with inflation. It’s important to keep in mind that there may be a waiting period before you receive your benefits, so it’s always best to plan and have a backup plan in place. Overall, buying disability insurance can provide peace of mind and financial stability during a challenging time.

Disability insurance premiums can be steep, but it’s important to have coverage in case the unexpected occurs (unexpected illness, serious illness, totally disabled, physical disability, partial disability, or accidental death). One way to potentially save money on premiums is by looking into group disability coverage offered through your employer or professional organization. Another option is to shop around and compare quotes from different insurance companies. When requesting a quote, make sure to provide accurate information about your occupation, age, and health status. Additionally, consider the level of coverage you need and any optional conditions that may be worth the extra cost for your specific situation. Ask your insurance agent. It’s important to buy disability insurance from a reputable insurance company to ensure that your policy will be there when you need it most.

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