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The Coverage Gap for Disability Insurance

Many Canadians have misconceptions when it comes to disability. As a result, most working adults aren’t financially prepared for an illness or injury. Here, we shed some light on the most common misconceptions—and what you can do to protect yourself.

Less than 6% of working Canadians have disability coverage

“I have coverage at work.”

Most Canadians believe they have enough disability coverage through their employer, and don’t investigate whether their coverage will fully protect them should they become injured or sick. The reality is, many employer plans have a coverage limit, and many employees discover that their coverage is not enough to replace all of their income.

Stay up-to-date with your coverage

Did you review your employer’s disability coverage carefully when you were hired, but not look at it again after that? If you’ve received salary increases, the gap between your income and coverage has grown. Take some time to ensure you have adequate coverage. Here are some things to look for:

  • How does your plan define disability?
  • Does your plan provide return to work services?
  • Are you covered for illness as well as injury?

If your disability plan doesn’t provide sufficient coverage, there are many solutions to help fill the gap in coverage. Talk to a licensed insurance advisor to learn the best option for your situation.

Next: The Financial Impact


Did You Know?Did You Know?

  • Many employer-sponsored plans end when you leave your job, while individual coverage is portable
  • Some employer-sponsored plans cap disability benefits at 50-75% of your income
  • Many employer-sponsored plans include a change in definition of occupation after 24 months. You may not be covered for what you think

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Protect your most valuable asset—your ability to earn an income.