There are many areas to consider when purchasing disability insurance in Canada. Disability insurance is defined in three types:

1. True Own Occupation Coverage. If you cannot perform your occupation’s duties due to a disability but are employed in another job and earning an income, you will receive coverage from your disability insurance for the long term. With this coverage, you can keep your income from a new role and earn monthly disability benefits. This definition is not as common as it is an expensive option and not as relevant.
2. Regular Occupation Coverage. If you cannot perform your occupation’s duties due to a disability and are not employed in another job, you will receive coverage. If you choose to start a new job, any income you receive will offset the monthly payment you are eligible to receive from your disability insurance. Some good news – with regular occupation coverage, you can control whether you stay on disability insurance or choose to get another job if you are unable to perform your original job medically. 
3. Any Occupation Coverage. If you cannot perform your occupation’s duties due to a disability and cannot perform a job you are qualified for through education and training, you will receive coverage from the disability insurance. If you are eligible for a lesser position and can perform its duties, you will not be covered. Any occupation coverage commonly comes into effect after a 24- or 60-month period of regular occupation protection. If you qualify for a lesser role, your insurance company is not responsible for finding you a new job. It can be helpful to choose a plan that provides earned income protection if you choose this type of coverage from your disability insurance in Canada. 

There are many factors to consider when choosing a plan for disability insurance in Ontario, Alberta, BC or anywhere across Canada. Some essential questions to ask yourself are:

• Do you want disability insurance on your mortgage or protection to replace other expenses?
• Do you want your income replaced for five years or up to age 65?
• Do you want protection in the event of an accidental disability or sickness?
• When do you want payments to start?
• How can your plan be more tax-efficient?

Return of Premium Rider

One option to consider when picking disability insurance in Canada is adding a return of premium rider. If you do not submit a claim for a certain number of years, you could receive all or a portion of your premium back.  

Increased Protection

You can purchase a plan that will allow you to increase the amount of protection you receive as you get older and earn more income. You can do this without needing to provide additional medical information. 

Insurance Inflation Protection

When considering disability insurance for the long term, ensure the value of your benefits keeps up with inflation with inflation protection for your disability insurance plan. This can be beneficial as you could be on a claim for 30 or 40 years.