Disability insurance, also called salary insurance, provides effective protection to your finances in case of a short or long-term disability

Disability insurance, also called salary insurance, provides effective protection to your finances in case of a short or long-term disability


What are the financial consequences of an accident or illness that renders you unable to work for several weeks? Look for disability or salary insurance coverage such as critical illness insurance, accident insurance, or hospitalization insurance.     


What type of disability insurance (or salary insurance) do you need?


Disability insurance is a type of salary insurance, in the same way as critical illness insurance, accident insurance or hospitalization insurance, for example.

But that’s not all!

Disability insurance offers financial protection that not only covers your compensation but also all other types of debt you have before you became unfit to work: mortgage, auto loan, and credit cards.


What are the categories of disability insurance?

There are several types of disability insurance products on the market. But all fall into one of the following categories: short-term disability (STD) or temporary disability insurance and long-term disability (LTD) or permanent disability insurance.


Temporary or short-term disability insurance (STD)

Disability insurance comes in two forms, short-term disability, and long-term disability, and can be offered as part of a group insurance policy.Short term disability insurance allows you to receive benefits in the event of an injury or illness for a defined period of time, usually 6 months.

It is possible for your employer to offer salary insurance in the event of disability but no law requires you to do so. Ask the Human Resources Department about this.

If you have not purchased short-term personal disability insurance and your employer does not offer group disability insurance, you may qualify for sickness insurance benefits if:

  • All your sick days have been used
  • You worked enough, in terms of hours.


Long-term disability insurance (LTD)

Here, the word « permanent » does not refer to the period of compensation but rather the continuation of the disability.Go get a long-term disability insurance in Canada when you want a great protection

Your long-term disability benefits will not be paid until the end of:

  • Payment of your short-term disability benefits
  • Sick leave benefits offered by an employer
  • The payment of benefits from your employment insurance.

Usually, disability insurance allocates 60% to 70% of your average salary.

Disability insurance plans vary. Some insurers pay benefits for a maximum of two (2) years. Your situation will be evaluated again later on.


Short-term disability insurance VS long-term

Short-term benefits

Long-term benefits

Will be paid first, followed by long term disability insurance, as needed.

Will be applied once your short-term disability benefits and your Employment Insurance benefits have ended.
You will be paid up to 70% of your usual remuneration.

The calculation of the percentage of your salary that you will receive is based on your contract (usually 60% to 70%).

Benefit period of a few weeks, usually not exceeding 6 months.

The maximum duration of the payment of your benefits is established by your contract.

This period is, however, much longer and may, in some cases, last up to 65 years.

If you have not taken out salary insurance, you could take advantage of health insurance under certain conditions.

Some long-term disability insurance exempts you from paying your premiums throughout your disability.


In summary: The differences between the types of disability or salary insurance?

To be sure to know and distinguish the details of all the types of coverage available on the market to cover your salary according to the duration of the disabilities making you unfit for work, contact the insurers and professional insurance broker partners of Compare Insurances Online, our digital platform for comparing online quotes and prices.

Indeed, to obtain a disability insurance or salary insurance that can adequately cover your salary, simply fill out the online request form on this page.

You will quickly receive an offer from one of our partners (direct insurers and insurance brokers) in your area.

All you need to do is decide if that quote (disability insurance or salary insurance) suits your needs and your budget.


Summary of the characteristics of the different types of disability or salary insurance

Type of disability or salary insurance Amount received and other terms
Critical illness insurance

Variable according to:

Your age

Your medical history

Your state of health

The amount of the deductible

The predetermined amount of financial coverage

The number of persons covered

Your gender

The type of package chosen

Économical: the 4 most common serious illnesses

Extended: 30 other diseases

Covering ±70% of your average compensation, based on the established conditions of your policy

Accident insurance

Variable based on the severity of injuries

You will receive the agreed amount when you subscribe

Lump sum or paid on a monthly basis

Hospitalization insurance

The amount can reach 100 dollars per day (±$100 /day), according to the agreement at the time of your subscription

Adjustable from the first day of hospitalization (no waiting period)

Paid directly to you periodically (even daily)

Payment period: 1 year maximum


How to choose the right disability insurance (short or long-term) for coverage of your salary?

Let a professional insurer or insurance broker assist you and analyze your financial security needs.

The products that are available vary from one insurance company to another, including the prices, and your professional insurance broker will inform you about the optimal cover which you can expect. He will direct you towards the disability or salary insurance that best suits your situation.

You can then opt for the duration of compensation that will meet your needs, and it can be for a few years and the time remaining until your retirement.

Insurers or insurance brokers that are partners of Compare Insurances Online are carefully selected, recognized and certified.

Disability insurance or salary insurance is part of their professional fields of expertise. They have the know-how required to guide you to the product that will offer you a comprehensive protection that is aligned to your needs, your expectations and your budget.

Let expert insurance brokers guide you in choosing the best disability insurance that is aligned to your needs and budget

Contact them through the online request form on this page.  Make sure that your salary is covered in case of an illness or accident that renders you unable to work.

Get your free quote for disability insurance

An insurance broker will compare premiums and find the best offer for you.

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