Understanding your options

Disability & income protection

Your ability to earn an income is likely your most valuable asset. Disability insurance — income protection — replaces part of that income if illness or injury keeps you from working.

By Trevor Perron, Independent Insurance Advisor · Serving Manitoba & Ontario

How it works

It pays regular benefits — typically a percentage of your pre-disability income — to keep you financially stable while you can't work.

Types of coverage

• Short-term disability: benefits lasting months up to a few years;
• Long-term disability: extended coverage, often to recovery or retirement age;
• Accident-only or accident and illness options.

Key terms

• Elimination period: the wait before benefits begin — a longer wait lowers your premium;
• Benefit amount: a percentage of your income, to cover essentials;
• Renewability: many policies are guaranteed renewable to age 65;
• Tax: depending on the policy, benefits may be tax-free.

Why it matters

It protects your most valuable asset — you. A loss of income from disability can mean hundreds of thousands in missed earnings, and this coverage keeps your household stable if life takes an unexpected turn.