How disability insurance works
You pay a regular premium. If an illness or injury prevents you from working beyond a waiting period (typically 30–120 days), the policy pays a monthly benefit — usually 60–80% of your pre-disability income — until you recover or the benefit period ends.
The two main types are short-term disability (STD), which covers the first weeks to months, and long-term disability (LTD), which can cover you to age 65.
Why income protection matters for newcomers
Many newcomer families in Ontario arrive without the savings cushion that takes years to build. A single lost month of income can cascade into missed mortgage payments and wiped-out emergency funds. Disability is more common than most people expect — statistics show that one in three Canadians will be disabled for more than 90 days at some point in their working life.
Key policy terms to understand
| Term | What it means |
|---|---|
| Elimination period | The waiting period before benefits begin. Longer waits mean lower premiums. |
| Own-occupation | Pays if you can't do your specific job — even if you could do a different one. |
| Any-occupation | Pays only if you can't do any job for which you're reasonably suited. |
| Benefit period | How long the policy pays. Options range from 2 years to age 65. |
| Non-cancellable | The insurer can't cancel the policy or raise premiums as long as you pay. |
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Book my free review →Frequently asked questions
What does disability insurance cover?
Disability insurance pays a monthly benefit — typically 60–80% of your pre-disability income — if an illness or injury prevents you from working for an extended period.
How is disability insurance different from workers compensation?
Workers compensation only covers injuries that happen at work. Disability insurance covers any illness or injury, whether it happens at work, at home, or elsewhere.
Does my employer cover disability?
Many employers offer short-term disability (STD) plans and some include long-term disability (LTD). However, group plans are often limited in coverage and may not follow you if you change jobs. A personal policy fills the gap.
How long does disability coverage last?
Short-term policies typically pay for 3–6 months. Long-term policies can pay to age 65 or until you can return to work, depending on the policy terms.
This page is for general educational purposes only and does not constitute personalized financial, tax, legal or accounting advice. Coverage terms, limits and eligibility are subject to underwriting and policy conditions — verify current terms before acting. Neelesh Kumar is a Licensed Life & Health Insurance Agent regulated by FSRA — verify at fsrao.ca. © 2026 Wealthready · FinanceWithNeelesh · Kitchener, Ontario.