What is disability insurance?

Disability insurance can provide you with financial security by replacing a portion of your earnings if an accident or illness causes you to become unable to work or earn an income. Accidents and illnesses are a fact of life. They could occur at any time. Disability insurance provides income to help manage your expenses during the period you are unable to work. 

      • Did you know that the likelihood of becoming disabled for 90 days or more before the age of 65 is one in four?1

Are you a business owner or a professional?

Who is it for?

A disability can strike anyone regardless of their age, gender or occupation. In this sense, anyone who earns an income could benefit from the added protection provided by disability insurance. In particular, those looking to help protect their family and other loved ones from possible financial disruption associated with suddenly becoming unable to work due to illness or injury would be appropriate for this insurance.

How does it work?

If you are unable to work due to an illness or injury and thus are unable to earn an income, you will receive a monthly payment after a pre-determined waiting period has passed. You might already have disability insurance through your employer, but you should be aware that this coverage may not meet all your needs. Individual disability insurance can provide you with more flexibility and can also help protect more of your earnings.

How does it benefit you and your family?

Your financial commitments don’t just disappear if you are unable to work. Disability insurance works when you can’t, providing you with a monthly income to help cover your ongoing expenses such as mortgage payments and grocery bills.

Insure your paycheque
The ability to earn an income is one of your most valuable assets. Your ability to provide for yourself and your family could come under risk if you are unable to work. Disability insurance can help maintain your lifestyle until you are able to return to work.

Safeguard your retirement
If you are unable to earn an income for an extended period, it could affect your ability to save for retirement. You may even need to withdraw from these savings to make ends meet. Disability insurance replaces a percentage of your income, so you may avoid having to withdraw money from your savings while you are unable to work.

How does disability insurance benefit your business?

You’ve worked hard to build your business and know better than anyone that being sick or injured costs money. Would your business survive if you became disabled, or would you be forced to sell one of your most cherished assets? Disability insurance helps mitigate these risks.

Cover overhead expenses
Overhead Expense Plan coverage can help pay expenses associated with running your business while you recover. Overhead protection helps provide money for costs related to employee salaries, rent and utilities.

Ensure a smooth transition
Disability insurance can provide funds to assist with the purchase of a disabled colleague’s shares or ownership interest as part of a buy-sell agreement. This type of agreement can help reduce potential conflict among existing shareholders or between owners and heirs.

Attract key people
Anyone who operates a business knows there are certain people critical to the organization’s overall success. Even if your company already provides group disability insurance coverage, individual disability insurance can complement disability coverage for key employees and business partners. Individual disability insurance typically provides more comprehensive coverage and offers more flexibility to better meet their needs. It can help attract and retain top talent.

1 Canadian Institute of Actuaries (CIA) 86-92 & 2012 Society of Actuaries – Individual Disability Experience Committee table.