Insurance / Disability Insurance
Disability Insurance: Protect Your Paycheque
Your ability to earn an income is your biggest asset. Disability insurance pays you a monthly benefit if an illness or injury stops you from working, so the bills still get paid.
Many people insure their home and car but not their income. Yet a working-age Canadian is far more likely to be off work because of a disability than to die early. Group coverage through work often replaces only part of your pay and ends when you leave the job. A personal plan stays with you.
Disability insurance at a glance
- Up to 85%of your after-tax income can be replaced, depending on the plan
- Tax-freeBenefits from a personal policy you pay for yourself are generally not taxed
- 30 to 180 daysTypical waiting period before benefits start
- 2 years to 65Benefit periods you can choose from
- Own or any occupationDefinitions of disability that decide when you can claim
- PortableA personal policy stays with you if you change jobs
Short-term vs. long-term
Short-term disability
- Covers shorter absences, often up to 6 months
- Short waiting period
- Common in group benefit plans
- Good for recovery from surgery or injury
Long-term disability
- Covers serious, long-lasting disabilities
- Benefits can last to age 65
- Protects your income for the long term
- Available as a personal policy
Who needs it most
Self-employed and business owners
No employer plan and no sick days. Your income stops when you stop.
Trades and physical jobs
A back injury or accident can keep you off work for months.
Main income earners
If your family relies on your pay, protecting it protects them.
Employees with limited group coverage
Top up a group plan that replaces only part of your income.
How we help
Review your coverage
We check what you have through work, CPP Disability and any other plans.
Find the gap
We calculate how much income you would be missing.
Compare plans
We compare waiting periods, benefit periods and definitions across insurers.
Apply and review
We help you apply and review your coverage as your income grows.
Frequently asked questions
How much does disability insurance cost?
It depends on your age, health, job, the monthly benefit, the waiting period and the benefit period. A longer waiting period lowers the cost.
Are disability benefits taxable?
Benefits from a personal policy you pay for are generally tax-free. Benefits from an employer-paid group plan are usually taxable.
What does “own occupation” mean?
An own-occupation definition pays if you cannot do your own job, even if you could do other work. It offers stronger protection and usually costs more.
I have coverage at work. Is that enough?
Group plans often cover only part of your income, may be taxable, and end if you leave the job. Many people add a personal plan on top.
Talk to Devendra Kumar, Financial Planner (CLU, CHS)
DK Insurance & Investment Inc. serves families across the GTA from offices in Vaughan, Mississauga and Brampton. Call or text +1-647-761-0517 for a free, no-obligation conversation.