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Injury and Sickness Insurance in Canada


Many Disability Insurance Plan Designs for Professionals, Business/Sales People, Technicians, Supervisors, Foremen, and Many More

Disability insurance CanadaAre you self employed or a business owner?

Does your company offer no Long Term Disability Insurance coverage?

Is ALL your income protected?

Is your lifestyle at risk?


Having adequate disability insurance for income protection in place should always be an important part of your financial plan. This is more so, given the high risk of becoming disabled in one’s life. However, based on your income, you could purchase a maximum amount of disability insurance.


Types of Disability

The definition of what is a disability comes in three categories:

Total Disability: ‘Total disability’ under this definition means inability to work at any occupation. For example, if a computer consultant becomes disabled, and is unable to do the regular occupational duties, but is able to gainfully work as a checkout clerk is ineligible for this type of policy. You receive 100% of your monthly disability benefit.

Partial Disability: Under the definition, “Partial Disability” means losing a minimum of 50% of time away from work or being not able to do an important function of your job. You receive 50% of your monthly disability benefit.

Residual Disability: In case of “Residual Disability”, the person is capable for doing work, but the disability is stopping from earning an income. Benefit will be paid on pro rata basis and will be according to the percentage loss of income. As for example, if your disability earns you 40% less income this month compared to last year, you will be paid 40% of your disability benefit.

Definitions of Occupation

Any Occupation: If you are able to work for any type, which is even different from your earlier job, you will be considered to be able to return to the workforce.

Regular Occupation: If you are unable to do the job you were previously doing before you were disabled, you receive benefits, till you join the workforce in a different job.

Own Occupation: If you are unable to do the job you were previously doing before you were disabled, you will be paid benefits without considering whether you start working in a different type of job or not. This type is not available with all types of work.

Waiting Period for Disability insurance Payment

The amount of time you wait before the start of your benefits payment is called the Elimination Period. It depends on your selection during application, with the earliest period allowed being 30 days from the day of being disabled, although you could wait for as long as 2 years. However in most cases, Insurance companies provide the best disability insurance premium based on 90 days after the start of disability. This removes the risk of broken bones, strained backs, pulled muscles, and other usual short-term injuries that you will recover from within 3 months period.

After a period of 90 days, the average work time is 2.9 years. At this point, your real long-term disability starts that requires your planning for protecting against the biggest risk.

Duration of Disability Insurance Payments

There are three choices of Benefit periods available. These are:

2 Years: the disability benefit is a cumulative total for any disability(s) or related compilations, paid for 24 months. (in most cases, the disability insurance benefit period is not a long)

5 Years: you are paid disability benefits for 60 months for one disability or other related complications. Around 95% of all disability insurance claimants return to work within 5 years.

Till 65 years: the disability benefits is paid till 65 years if you are disabled till that age and under the care of a doctor.

Designing your disability insurance plan

Designing a disability insurance plan is a complex procedure. The better the benefit is, the more expensive the premium. We at Life Guard Insurance can help you find a balance plan that meets your need and affordability.

The Importance of Disability Insurance in Canada

Canada is blessed with a unique employment environment. People mostly work either on contract, are consultants or run their own businesses. Many smaller IT, Oil and Gas companies are also available that have recently opened operation and are growing but do not provide group disability insurance benefits.

Another unique feature in Canadian job market is the large portion of income paid s bonus to managers, engineers, executives and consultants. However, the bonus making a large portion of total income is not covered in a group disability insurance income plan, which is meant of regular earnings only. If you are in a similar situation in Canada, you should look for a personally owned disability insurance plan to get the much needed income protection.