Best Disability Insurance Companies In Canada

Life insurance is important for most people because it protects their loved ones in case something bad happens. But people don’t always understand how important disability insurance is. Disability insurance is very important if your family counts depends on your income.

Some disabled benefits are provided by programs like Workers’ Compensation and Employment Insurance, but they are not enough to protect people. Find out about the best disability insurance companies in Canada by reading on.

Get a quote from Sure Insurance right now to protect your family’s finances.

What is Disability Insurance?

Disability insurance ensures that if you become unable to work due to illness or injury, you will receive a tax-free monthly payment to replace your income and support your living expenses.

Disabilities can be obvious, but some are not visible, such as chronic pain or mental health issues. This insurance safeguards you and your family if an unexpected illness or injury stops you from earning a living. 

Typically, disability insurance covers between 60% and 85% of your regular income for a specified period, whether you are temporarily unable to work or are permanently disabled.

It’s important to distinguish between disability insurance and critical illness insurance. While both offer financial support, they serve different purposes. 

Critical illness insurance provides a lump sum payment upon the diagnosis of a serious illness covered by your policy. In contrast, disability insurance gives you monthly payments when you are unable to work.

Get a quote from Sure Insurance today to protect yourself and your loved ones.

How does disability insurance work?

Understanding how disability insurance operates is crucial for ensuring your peace of mind. Here’s a straightforward outline of the process:

First, you customize your coverage, choosing the amount you need and any additional options. Then, you pay your monthly premium. If you become disabled, you file a claim. 

After a waiting period, which is the time between when your disability begins and when your benefits start, you will receive your monthly payments. These payments continue until your benefit period ends or you return to work.

While the process is generally the same across different companies, it’s essential to find the disability insurance that best suits your needs and budget.

Short-Term Disability Insurance

Short-term disability insurance provides benefits for up to six months if you are unable to work due to illness or injury. If your employer offers a short-term disability policy, you need to submit your claim through their plan. Note that employers are not required to offer paid sick leave, and their policies vary.

Long-Term Disability Insurance

Each long-term disability plan is unique. In some cases, if you cannot return to your previous job, you may receive benefits for up to two years. After that, you may only continue receiving benefits if you cannot work in any job. 

Long-term disability benefits typically begin after other benefits, such as short-term disability insurance, your employer’s sick leave, or EI benefits, have expired. Most long-term disability policies replace 60% to 70% of your regular income.

Discover the peace of mind that comes with being prepared. Get a quote from Sure Insurance today and protect your future.

The Importance of Disability Insurance

Did you know that up to 40% of Canadians might face a disability lasting 90 days or more before they turn 65? It’s more common than many realize. Disability insurance plays a crucial role in protecting a substantial portion of your income, potentially covering 80-90% of your salary.

With the best disability insurance companies in Canada, you can shield your retirement savings. This type of insurance helps ensure you won’t need to dip into your retirement funds to meet financial obligations during a period when you can’t work.

Securing the right disability insurance to cover your expenses while you are disabled or unable to work is essential for your financial peace of mind.

Get a quote from Sure Insurance today and safeguard your future.

Best disability insurance companies in Canada

When it comes to safeguarding your income and protecting your future, choosing the best disability insurance companies in Canada is crucial. 

1. Canada Life.

Canada Life stands out for its flexibility, offering a range of optional riders tailored to your needs. Their rates are also affordable, catering to various professions, from office workers to those with minor manual tasks.

With two comprehensive disability plans, Canada Life ensures coverage for the majority of professions and work arrangements. Whether you’re starting your career, seeking coverage independently, juggling multiple jobs, or facing unique circumstances, Canada Life has a plan for you.

Pros:

• Industry-leading maximum monthly benefit of $25,000.

• Option for own occupation coverage for job classes 3A and 4A.

• Wide selection of riders, including accidental Death & Dismemberment and catch-up rider option.

• Offers a non-cancellable contract, providing stability and peace of mind.

• Healthcare professionals enjoy special discounts.

Cons:

• Slightly higher prices for certain professional categories.

• A lengthy underwriting process may deter some applicants.

• Limited future income option amount and COLA rider benefit amount.

2. Desjardins Insurance

Desjardins Insurance offers a range of disability insurance packages tailored for employees, the self-employed, and business owners. You can customize your plan by selecting the monthly benefit amount, adding optional riders, and more. Applying with Desjardins is quick and easy, with an electronic application that takes just a few minutes to complete.

Pros

• The unique offering of disability insurance for loans, covering expenses like your home or auto loan.

• Free support options include 24/7 access to speak with a nurse about any medical concerns.

• Various rider options are available to enhance your coverage.

Cons

• Lacks non-cancellable disability insurance with guaranteed, steady premiums.

• Slightly higher prices for certain professional job categories.

• A maximum monthly benefit of $10,000 may not be sufficient for higher-income earners.

3. Manulife

Manulife understands the unique needs of professionals, executives, and recent graduates. We offer tailored coverage with optional add-ons to safeguard your income in case you’re unable to work in your specialized field. While these extras may come at an additional cost, they provide invaluable peace of mind.

The premiums for our disability insurance plans vary based on the benefits they provide, as well as factors like age, gender, smoking status, occupation, and plan design.

Pros

• Secure your future with the Future Care Option, allowing you to convert your policy to a long-term care plan upon retirement.

• Dentists receive an elevated occupation class of 4A, offering enhanced coverage compared to other providers.

• Benefit from Automatic Coverage Enhancement, which boosts your disability compensation annually without requiring medical documentation.

• Enjoy your own occupation, riders, even those in elevated occupation classes.

Cons

• While our products offer comprehensive coverage, they may be pricier compared to similar options.
• Please note that processing applications may take longer than usual.

4. Humania

Humania Assurance offers a range of disability insurance plans designed to ease financial burdens and replace lost income. Your eligibility for these plans depends on factors such as your job, health, income, debt, and industry.

Pros

• Premiums remain fixed for the initial five years, providing stability despite potential future increases.

• All professions are welcome, even those with hazardous work environments or fluctuating incomes.

• Additional options include critical illness and life insurance riders for enhanced coverage.

Cons

• Obtaining insurance may prove challenging if you have a preexisting condition due to rigorous medical underwriting.

• The monthly benefit maximum is capped at $6000.

5. RBC

RBC Insurance offers a wide array of disability insurance products catering to diverse demographics. You can customize your policy with optional riders to enhance coverage. Applying for disability benefits is made easy through an electronic application process.

Pros

• RBC Insurance provides various options for those seeking disability protection. Optional riders allow for personalized policy adjustments.

• The online application streamlines the process of applying for disability payments.

• With a non-cancellable policy, RBC Insurance cannot unilaterally increase premiums or alter or terminate coverage.

Cons

• Some occupations may not qualify for the own occupation rider.

• There is no premium refund rider included.

• Lower occupational classifications might incur higher costs.

Frequently Asked Questions (FAQs) about the Best disability insurance companies in Canada

What is disability insurance?

Disability insurance gives you some of your income if you get sick or hurt and can’t work. This way, you can pay your bills. Disability affects more people and happens more frequently than you may think. In fact, illnesses—including common disorders like heart disease and arthritis—are the top cause of problems.

Some companies provide their staff with short- and long-term disability insurance. In the immediate wake of an event, a short-term insurance can be helpful, while long-term coverage can help give financial security for a condition that could continue for years. To help give additional financial protection, you can also pay for extra coverage on top of the benefits you receive at work.

Where can I purchase disability insurance?

You might be able to purchase disability insurance from your job, from a group or association of workers to which you belong, or on your own. In general, the majority of disabled goods offered by organizations, such as your workplace or an association, are less expensive and promised at issue.

You might choose to gain service only by joining the group or working there. No specific screening is needed. Some companies even cover the full cost of the disability payments, up to 100%.

If that’s the case, consider yourself lucky because the number of businesses offering disability insurance continues to drop. Finally, any disability payouts you might receive are taxed if your company or group pays some or all of your bills.

Should I get disability insurance?

If you have a mortgage or rent to pay, children to feed, bills to pay, or other financial commitments that can’t be put on hold, or you don’t have enough savings or investments to continue living the way you are for an extended length of time while you can’t work, then disability insurance is a need.

What is the cost of disability insurance?

Generally speaking, the cost of disability insurance runs from 1 to 3 per cent of your monthly salary. The fee amounts may be paid monthly, weekly, or yearly.

How can I submit an application for individual disability insurance?

The application process for individual disability insurance is pretty similar to that for life insurance. Insurability is decided at the screening step of the application process. Insurers will look closely at whether or not you have any past conditions that could make you unable to work in the future.

Because your coverage amount is usually determined by your current income, there is an extra process to check your income level and job skills.

The average salary of past years may also be used as a standard by some companies for setting rates. You can call one of our experts today to get started with an individual disability policy.

What can you do with your disability insurance payments?

You can do whatever you want! An individual disability insurance policy’s monthly payment can be used to pay for basics like food and housing, as well as bigger costs like school loans and medical care. In addition to cash pay, many plans include additional services to help clients recover their physical, mental, and financial health.

What kinds of disability insurance are there?

There are two types of disability insurance

Short-term disability insurance is usually given to pay for missed wages due to short or brief health problems brought on by less serious illnesses or accidents. Benefit payments may start as soon as you finish your sick leave, sometimes as early as 1–14 days after a claim is made, and coverage may run up to 52 weeks.

Benefit payments usually last between 6 and 26 weeks. It is frequently employed for short-term health issues such as accidents, sports injuries, and back problems that could keep you from working for a few weeks or months.

You can protect yourself from the financial effects of long-term health problems by buying long-term unemployment insurance.

Typically, it kicks in as soon as the original short-term injury period ends and can run anywhere from two to five years, though most plans continue coverage up to age 65 (the standard retirement age). People buy it to supplement the disability insurance their jobs provide. It’s a go-to for a wide range of scenarios, including mental health problems, injuries, and crashes.

What aspects of disability insurance affect its price?

Several factors affect the price if you choose to buy your own disability insurance coverage rather than be covered by your company. You can find and get insurance that fits your budget by being aware of it.

The amount of income you want to replace in the event of a claim, as well as your gender, age, work, and premium, are some of the factors that affect your premium. For instance, you might expect to pay more for coverage than someone who works in an office all day if you have a dangerous line of work.

What kind of disability insurance coverage am I eligible for?

If you become crippled and are unable to work, disability insurance plans are meant to partly replace your income. Insurers refuse to replace 100% of the income lost due to a disability to reduce the number of fake disability claims.

Only about 60% of the insured’s earned income is usually covered by group disability insurance plans. You will normally have to pay income tax on the benefits if you receive disability income from group insurance through your job.

To fill the gap between group insurance and up to 90% of their income, an individual can freely apply for private coverage through an insurance company. If the fees for the individual coverage are paid using after-tax money, the benefits received from the insurance may be income tax-free.

Is disability insurance tax deductible?

Typically, the answer is no. You may usually expect to get disability insurance payments tax-free if you need to claim them. If your company pays the insurance premium or if the payment is paid before taxes, the disability payout may be charged, lowering the amount you get.

Looking for comprehensive disability insurance tailored to your needs? Get a quote from Sure Insurance today and safeguard your financial future with confidence.