Disability Insurance

With group insurance, coverage typically ends when you leave your employer, unless there's an option to convert to individual coverage. Individual disability insurance is not tied to your job, so it continues regardless of your employment status.

Group coverage often has limited amounts and less flexibility, with changes usually tied to annual enrollment periods or life events. Individual coverage, on the other hand, offers more flexibility in choosing coverage amounts and terms, and remains with you independent of your employment status.

While group insurance provides basic coverage, an individual disability policy offers additional protection. It allows you to choose your coverage amount and duration, ensuring comprehensive protection for you and your family.

Age and income are commonly considered when evaluating disability insurance needs, as policies are designed to help replace a portion of income if a disability occurs. The appropriate amount and structure of coverage depends on individual circumstances and policy terms.

Disability insurance is designed to provide income support when a person is unable to work due to a qualifying disability, as defined in the policy. Coverage definitions vary by insurer and policy, and eligibility depends on the specific terms of the contract.

Generally, obtaining disability insurance involves answering medical questions and possibly undergoing a medical exam. The depth of this medical assessment often varies based on factors like your age and the amount of coverage you're seeking.

The amount of disability insurance that may be appropriate depends on personal financial obligations, existing coverage, and other sources of income. Coverage needs are typically assessed based on individual circumstances rather than a fixed formula.

Employer-sponsored disability coverage can vary significantly in terms of benefit amount, duration, portability, and definitions. Some individuals review additional coverage to understand whether their existing plan aligns with their personal needs, particularly if their employment situation changes.

The Canadian government provides disability benefits through public programs. These benefits are designed to provide basic income support and are subject to eligibility criteria and program rules. Public disability benefits may not replace a person’s full income, which is why some individuals consider additional private coverage.