Disability insurance provides monthly income replacement if you are unable to work due to illness or injury. After a waiting period (the elimination period), the insurer pays a monthly benefit — typically 60–85% of your pre-disability income — for the duration of the benefit period or until you return to work, whichever comes first.

Consider a practical example: a 42-year-old self-employed physiotherapist suffers a serious back injury requiring surgery and six months of rehabilitation. Without disability insurance, they have no income during recovery. With a policy providing $6,000 per month after a 90-day elimination period, they receive income replacement from month four onward — enough to cover the mortgage, household expenses, and business overhead while they recover.

The Canadian Life and Health Insurance Association (CLHIA) reports that approximately 1 in 3 Canadians will experience a disability lasting 90 days or more before age 65. Yet disability insurance remains one of the most underinsured areas of personal financial planning in Canada — particularly for the self-employed and business owners who have no employer plan to fall back on.

Disability insurance is regulated under the Insurance Act (Ontario) and equivalent provincial legislation. Oracle RMS Insurance London North operates through A Bajaj Financial Services Inc., FSRA Licence No. 41867M, and is authorized to place disability insurance with multiple Canadian carriers.

Most disability insurance policies replace 60–85% of your pre-disability income. The right benefit amount depends on your monthly fixed expenses, existing savings, any group disability coverage through your employer, and your financial obligations.

A structured needs analysis typically considers: your monthly mortgage or rent payment; household expenses (utilities, food, transportation, insurance premiums); debt payments (car loans, lines of credit, student loans); business overhead expenses if you are self-employed (rent, staff salaries, equipment leases, loan payments); and the income your family depends on.

Insurers cap the monthly benefit at a percentage of your pre-disability income — typically 70–85% — to maintain an incentive to return to work. For a self-employed professional earning $120,000 per year ($10,000 per month), a policy providing $7,000 to $8,000 per month would be a reasonable target, subject to the insurer's maximum benefit limits.

Note that group disability benefits through an employer are often taxable (if the employer pays the premiums), while individually owned disability insurance benefits are generally received tax-free (if you pay the premiums). This affects the net benefit amount you actually receive.

The elimination period is the waiting period between the onset of disability and when benefits begin. Common elimination periods are 30, 60, 90, or 120 days. A longer elimination period results in a lower premium — choosing a 90-day elimination period instead of a 30-day period can reduce your premium by 20–30% or more, depending on the insurer and your age.

The right elimination period depends on your financial reserves and risk tolerance. If you have three to six months of living expenses in an emergency fund, a 90-day elimination period is often the most cost-effective choice. If you have limited savings or your business cannot operate without you, a shorter elimination period may be worth the higher premium.

For business owners, the elimination period for a business overhead expense (BOE) policy is often shorter — 30 or 60 days — because business fixed costs (rent, staff salaries, loan payments) begin immediately and cannot wait 90 days.

Short-term disability (STD) insurance covers disabilities lasting up to 6 months, with benefits typically beginning after a short elimination period of 0 to 14 days. Long-term disability (LTD) insurance covers disabilities lasting longer than 6 months, with benefits continuing for 2 years, 5 years, or to age 65, depending on the policy.

Many employer group plans include both STD and LTD coverage. The STD plan covers the initial period of disability, and the LTD plan takes over if the disability continues beyond the STD benefit period. There is often a coordination provision to ensure there is no gap between the two.

Individual disability insurance is typically long-term coverage — it is designed to protect against the financial catastrophe of a prolonged disability, not a short-term illness. For most Canadians, the greatest financial risk is a disability lasting two or more years, not a few weeks.

Yes — individual disability insurance is specifically designed for self-employed individuals, business owners, and professionals who do not have access to an employer group plan. It provides income replacement if you are unable to work due to illness or injury, and it is portable — it stays with you regardless of changes in your business or employment status.

For self-employed Canadians, disability insurance is arguably the most important insurance product they can own. Without an employer plan, there is no income replacement if you cannot work. Employment Insurance (EI) sickness benefits provide only 55% of insurable earnings up to a weekly maximum for up to 15 weeks — far less than most self-employed individuals need, and only available if they have opted into the EI self-employed program.

Self-employed individuals can also obtain business overhead expense (BOE) insurance, which covers the fixed operating costs of the business — rent, utilities, staff salaries, equipment leases, loan payments — while the owner is disabled and unable to generate revenue. BOE insurance is separate from personal income replacement disability insurance.

Many disability insurance policies cover mental health conditions such as depression, anxiety, burnout, and post-traumatic stress disorder (PTSD) as a cause of disability, subject to the policy's definition of disability, elimination period, and any applicable limitations.

Mental health is a significant and growing cause of disability claims in Canada. The Centre for Addiction and Mental Health (CAMH) reports that by age 40, approximately 50% of Canadians will have had or currently have a mental illness. Mental health conditions are now one of the leading causes of long-term disability claims in Canada, according to the Canadian Life and Health Insurance Association.

However, some disability insurance policies have specific limitations on mental health claims — for example, a maximum benefit period of 2 years for mental and nervous conditions, even if the policy otherwise provides benefits to age 65. This limitation is common in group disability plans and some individual policies. Reviewing the mental health provisions in any policy carefully before purchasing is important.

A non-cancellable disability insurance policy provides the highest level of contractual certainty available in the Canadian market. The insurer cannot cancel the policy, increase the premium, or change the terms as long as you pay the premiums. Your coverage and premium are locked in for the life of the policy — regardless of changes in your health, occupation, or the insurer's claims experience.

Guaranteed renewable policies are a step below non-cancellable: the insurer cannot cancel your individual policy, but can increase premiums for an entire class of policyholders (not just you individually) if their claims experience deteriorates. Your coverage is protected, but your premium is not.

Conditionally renewable policies offer the least protection — the insurer can decline to renew the policy at certain intervals, though they cannot single you out.

For professionals and business owners who depend on their income, non-cancellable disability insurance is generally the preferred choice — the certainty of knowing your coverage and premium will not change is worth the higher initial cost. Non-cancellable policies are typically available up to age 65.

It may be possible to obtain disability insurance with a pre-existing health condition, depending on the condition, its severity, and the insurer's underwriting guidelines. Possible outcomes include: standard rates (the condition is well-controlled and considered minimal risk), a rated policy (higher premium), an exclusion for claims arising from that specific condition, or in some cases a decline.

For example, a person with a history of lower back problems may be insurable with an exclusion for back-related disability claims. Someone with well-managed Type 2 diabetes may be insurable at standard or slightly rated premiums with some carriers. A person with a recent history of depression may face a mental health exclusion or a waiting period before mental health claims are covered.

Simplified issue disability products are available from some Canadian insurers for applicants who may not qualify for fully underwritten coverage. These products typically have lower benefit amounts and higher premiums per dollar of coverage.

Group disability plans through employers often provide a benefit of 60–70% of your base salary, but there are several common limitations that may leave you underinsured.

First, group LTD benefits are typically taxable if your employer pays the premiums — meaning a 70% gross benefit may net out to 50–55% of your take-home pay after tax. Second, group plans may not cover bonuses, commissions, or other variable income. Third, many group LTD plans switch from an own-occupation definition to an any-occupation definition after 2 years — meaning you must be unable to perform any job for which you are reasonably suited, not just your own occupation. Fourth, group coverage ends when you leave the employer.

Individual disability insurance is portable and can be structured with an own-occupation definition, non-cancellable terms, and a benefit period to age 65. Many Canadians supplement their group coverage with individual disability insurance to address these gaps.

Yes, Oracle RMS Insurance – London North is licensed by the Financial Services Regulatory Authority of Ontario (FSRA).

We operate through A Bajaj Financial Services Inc., which holds FSRA Insurance Act Licence No. 41867M in Ontario. Our licensing authorizes us to offer life and accident and sickness insurance products, including disability insurance, through our relationships with multiple Canadian insurance carriers.

As an independent insurance brokerage, we work with leading insurers. This allows us to compare available plans, benefits, and premiums to help individuals and families find coverage suited to their needs and budget.

Our goal is to make finding the right disability insurance simpler, with personalized guidance, access to multiple insurance providers, and support in understanding your options.