• You are the bread winner of the family
  • You have monthly bills and expenses
  • Your coverage from work is not sufficient
  • You are a business owner
  • You work in a high-risk job
  • Self-employed
  • Small business owners
  • Contract employees
  • A teacher who is battling depression and mental health issues
  • A truck driver who needs months to recover from a major truck accident
  • A construction worker who broke his back and need bed rest for 6 weeks
  • A courier driver who breaks his ankle and can’t work for three months
  • A financial analyst battling with breast cancer whose strength and energy is depleted by chemotherapy
  • The owner of a small business who needs time away from the work to recover from a heart attack
  • 1. Short Term Disability Insurance
  • 2. Long Term Disability Insurance
SHORT TERM DISABILITY INSURANCE LONG TERM DISABILITY INSURANCE
1. Mostly provided through your employer 1. Available through employer as well as an individual plan
2. Typically lasts for up to 6 months 2. Typically lasts for up to 2 years, depending on your policy
3. You need to use up your sick days or vacation time before short-term disability starts 3. Will begin after short term disability, sick days, vacation time and EI benefits are used up
4. You can purchase your own policy above your employer’s coverage, but benefits will be integrated at the time of claim and usually maxing out at 85% of your regular pay 4. You can buy your own disability policy in addition to employer’s coverage, but benefits will be integrated at the time of claim and usually maxing out at 85% of your regular pay
5. You may be eligible for EI sickness benefit if short term disability insurance is not available through your employer 5. Benefit may continue after 2 years, but only if you are disabled to work in any occupation depending on your policy
6. Usually replaces 70% of your income 6. Usually replaces 40-70 % of your income up to a max of $5,000 per month
  • Age: If you buy at a young age your premiums will be less.
  • Gender: Females are considered more risky when it comes to disability insurance and are more expensive to insure.
  • Health: The healthier you are the lower your premiums will be.
  • Smoking Status: Smokers pay more as compared to non-smokers.
  • Occupation: Risky jobs and dangerous occupations may result in higher insurance premiums.
  • Coverage amount: The more coverage you would like to receive the more it will cost.
  • Benefit Period: Longer benefit periods will cost you more.
  • Waiting Period: The longer the waiting period, the less the premiums will be.
  • Definition of Disability: Any Occupation definition of disability insurance is less expensive as compared to Own Occupation.