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Disability Income Insurance

Disability income insurance is a type of coverage that replaces a portion of your income if you become unable to work due to illness or injury. It provides ongoing monthly payments designed to help you meet financial obligations such as rent, mortgage, utilities, or living expenses while you recover or adjust to a long-term disability.

This type of insurance can be short-term, covering temporary disabilities for a few weeks or months, or long-term, continuing until you recover, reach a certain age, or the benefit period ends. The benefit amount is typically a percentage of your pre-disability earnings, often between 60 and 85 percent. Policies may also include features such as a waiting period (called the elimination period), cost-of-living adjustments, and partial disability benefits for those able to return to work part-time.

Disability income insurance provides financial stability during health-related work interruptions and is an essential complement to life and critical illness insurance.

Example:

If your monthly income is $5,000 and your disability insurance covers 70 percent of earnings, you would receive $3,500 per month after the elimination period if you are unable to work due to a covered disability.

What to Watch For:

Understand how your policy defines “disability.” Some plans pay if you cannot perform your regular occupation, while others pay only if you cannot work in any occupation for which you are reasonably qualified. Review elimination period options carefully to balance premium cost and financial readiness. Confirm whether your benefits are taxable, as this depends on who pays the premiums.

Related Terms

Deductible

A deductible is the fixed dollar amount you must pay each benefit year before your plan starts reimbursing eligible expenses. Think of it as your yearly participation in costs - once met, your plan covers claims according to its coinsurance. Some individual health plans in Canada have no annual deductible, while others apply one only to certain benefits (often $25–$100 per person).

Dental Accident

A dental accident is a sudden, unexpected event that causes injury to the mouth, teeth, or jaw, resulting from an external force rather than from decay, chewing, or normal use. Examples include being struck in the face, falling and hitting your mouth, or suffering an impact during sports. Dental accident coverage helps pay for the repair or replacement of natural teeth damaged in such incidents.

Dental Fee Guide

A dental fee guide is a provincially issued schedule that lists the standard or recommended prices for dental procedures. Each province and territory in Canada publishes its own guide annually, outlining suggested fees for everything from cleanings and fillings to crowns and dentures.

Dental Insurance

Dental insurance is a type of health coverage that helps pay for the cost of preventive, basic, and major dental services. It is designed to make oral care more affordable and to encourage regular checkups that prevent costly procedures later on. Dental insurance is offered through group employee benefits, individual plans, or conversion plans for people leaving workplace coverage.

Dentist

A dentist is a licensed healthcare professional who diagnoses, treats, and helps prevent conditions affecting the teeth, gums, and mouth. Dentists play a key role in maintaining oral health through preventive care, restorative treatments, and patient education. Common services include cleanings, fillings, crowns, root canals, extractions, and oral examinations.

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