Disability insurance is a type of health insurance that helps protect you financially by replacing a portion of your income if you have a condition that prevents you from working and you meet the eligibility requirements of the policy.
When you're unable to work because of an illness or injury, your income stops, but your expenses don't. Disability insurance can help you cover your financial obligations in the short- and long-term so that you can focus on managing your health and condition.
Here are the key benefits of disability insurance:
Receive a portion of your income when unable to work due to an illness or injury.
Helps cover living expenses and maintain your lifestyle during recovery.
Fill gaps left by employer-provided or government disability programs.
Helps provide your dependents with financial stability if you're unable to work.
Some of the common conditions that may prevent you from working can include:
It's important to note that coverage can vary depending on your plan. Some policies may have exclusions for pre-existing conditions or certain types of injuries.
The cost of disability insurance varies based on several factors. Most premiums are calculated based on your level of risk and the type of coverage you choose.
Here are some key factors that can influence the cost of disability insurance:
Younger applicants typically pay lower premiums.
Occupations involving higher injury risks generally come with higher premiums.
The more coverage you purchase, the higher your premiums will be.
Policies that pay benefits for a longer duration typically cost more than shorter ones.
The waiting period (or elimination period) is the time, often 30-180 days, between the onset of a disability injury/illness and when benefits start.
Your health is assessed during application and may affect your eligibility as well as premium cost.
The best way to determine the amount of coverage you will need and the cost is to speak with a Sun Life advisor. An advisor can provide more detailed information about disability insurance and answer any questions you have.
Enter your postal code to connect with an advisor near you.
In insurance, a disability typically refers to a physical or mental condition that limits an individual's ability to work. Canadian disability insurance plans can cover a broad range of conditions including mental health conditions, autoimmune diseases, chronic pain and fatigue disorders, and neurological disorders. Please consult your policy for any applicable definitions.
There is no difference between the two. Disability insurance is also sometimes called disability income insurance.
Eligibility is dependent on an applicant's profession, income, medical history, and the type of coverage you need. Connect with an advisor for more detailed information and to find out if you're eligible for disability insurance.
The duration of disability insurance coverage varies depending on the type of policy and specific terms. Most policies provide coverage that ends at age 65, though some offer maximum benefit periods of 2 or 5 years. In rare circumstances, there may be an option to extend coverage beyond age 65, which would typically result in significant premium payments. Connect with an advisor for more detailed information about your specific policy.
Group benefit plans often only provide you with basic coverage, and only while you're employed. Getting your own disability insurance policy can complement your existing group plan and stays with you if you change jobs.
Here's how disability insurance can help.
Learn how a potential disability could impact you and what you can do now to protect against it.
Reviewed by Liane Goulet
This information is meant for educational and illustrative purposes only. Some conditions, exclusions and restrictions apply.
