Disability Insurance for Self-Employed Canadians
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If you work for yourself, you may not have disability insurance through an employer. A policy may help replace some income if you cannot work.
Simple guide: The rules and prices depend on the actual plan. Read the contract and ask questions before deciding.
Know your income
Look at the money you actually earn, not just the total sales of your business.
Definition of disability
The policy explains what it means to be unable to work. Read this carefully.
Waiting period
This is how long you must wait before payments may start.
How long payments last
Some policies pay for a shorter time than others.
Proof of earnings
An insurer may ask for tax returns or financial records.
Working part-time
Some plans offer partial benefits if you can work less and earn less.
Health exclusions
Some conditions may be excluded or affect approval.
Business bills
Business overhead insurance is a different product that may help with certain operating costs.
Other benefits
Payments from other programs can affect the amount a policy pays.
Review as income changes
If your income changes, ask whether your coverage still fits.
Questions to ask
- What does this plan cover?
- What does it leave out?
- How much will I pay?
- What can change later?
- Who can help if I have a question or claim?
Read more in the Financial Learning Centre or contact Ali Aftab. This is general information, not personal insurance, legal, tax or investment advice.
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