Disability insurance or disability income insurance refers to a type of insurance that can provide income for those unable to perform their work due to disability. If you are experiencing loss of income due to a disability, which may be because of an illness, a physical injury, or a psychological disorder, disability insurance can cover your case. Here are two main types of disability insurance: Government insurance programs, and Private insurance plans

Keep in mind that an employee must be working to purchase disability insurance based on income replacement. The type of disability insurance you choose will affect your eligibility for benefits and the type and amount of benefits you receive. For more detailed information, visit paralegal firms in Toronto.

What Are Government Disability Insurance Programs?

All working Canadians who meet the eligibility requirements and have paid the required insurance premiums can use the available government insurance programs. Here are two of them: provincial insurance and federal insurance

Provincial Insurance 

The Workplace Safety and Insurance Board provides disability benefits to injured or sick workers in Ontario. The good news is that this insurance program covers the majority of workers in Ontario. As an employee covered by Workplace Safety and Insurance, if you have a work-related injury resulting in losing wages or needing medical treatment, you can collect benefits. Also, the family members of a worker, who dies from a work-related disease or in a work-related accident, can collect benefits.

Federal Insurance

A worker, who has paid EI premiums and is unable to work because of an injury or illness, or is quarantined, can collect Federal Employment Insurance sickness benefits.

Canada Pension Plan disability benefits are available for those who have made contributions to the Canada Pension Plan and are unable to work at any job because of disability.


What Are Private Disability Insurance Plans?

Private Group Disability Insurance Plans

This type of private insurance plan, mostly provided by employers and associations, provides disability coverage to employees who become disabled due to a work-related disease or injury and cannot work. Sometimes, an employee must contribute to the premiums through regular deductions from the amount of payment. It should be emphasized that if an employee pays for part or all of the premiums, then s/he must not pay tax, but if the employer pays for the policy, an employee will pay tax on that portion of benefits.

Private Individual Disability Insurance Plans

You can purchase your private disability insurance policies. In other words, it can be purchased directly from an insurance bank or company. Short-term and long-term plans are among the common types of individual disability insurance. Because you may ask whether you should purchase disability insurance and if so, how much, we provide you with several considerations:

  • If you are self-employed
  • If your employer cannot provide disability insurance
  • If the employer provides insurance, but the employee thinks the coverage is not enough

Depending on if you have insurance and what type, the benefits you may be entitled to can be different. Before any decision, you should consult with a trusted paralegal in Toronto.