Disability Insurance
Disability insurance can help protect you and your family from an unexpected illness or accident that leaves you unable to work and earn an income.
Generally, disability insurance replaces between 60% and 85% of your regular income, up to a maximum amount, for a specified time if you:
- Temporarily can’t work
- Are permanently disabled due to an injury or illness
Permanent refers to the nature of the disability. It does not mean that you’ll get benefits for the rest of your life.
Many employers offer disability insurance. However, you can get your own disability insurance plan through a life and health insurance agent.
If you’re self-employed, you can also get disability insurance that will cover many of your business expenses if you’re unable to work.
Short Term Disability Insurance
Short-term disability coverage typically provides benefits for up to 6 months while you’re sick or injured. If you don’t have short-term disability coverage and your employer does not offer one, you may be eligible for Employment Insurance (EI) sickness benefits. To be eligible for EI sickness benefits, you must:
- Usually have used all of your sick leave
- Have worked enough hours
Long Term Disability Insurance
Long-term disability insurance benefits generally begin when the following benefits end:
- Short-term disability insurance
- Sick leave benefits from your employer
- EI benefits
Most long-term disability plans will replace 60% to 70% of your normal income.
Each disability plan is different. Some may provide disability benefits for up to two years if you’re unable to return to the job you had before becoming disabled. After two years, you may continue to receive benefits only if you’re unable to work at any job.
