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- Disability insurance provides vital income protection for anyone who depends on their earnings, especially self-employed individuals, gig workers, newcomers, and those without group benefits
- Canada's leading disability insurance providers include Canada Life, Desjardins, Manulife, Edge Benefits, Humania, and RBC Insurance, each offering distinct advantages for different coverage needs and budgets.
- Key factors that impact disability insurance include your age, occupation, health status, waiting period, benefit duration, coverage amount, and how an insurer defines disability
- Short-term disability offers 100% short-term income replacement, while long-term disability typically covers 60–80% for extended periods, sometimes until age 65
- What is disability insurance?
- What factors affect the cost of disability insurance in Canada?
- Which are the best disability insurance companies in Canada?
- Methodology: How we ranked the best disability insurance in Canada
- Key factors to consider when applying for disability insurance
- What happens if I miss a premium payment on my disability insurance plan?
- How to get the best disability insurance quotes in Canada?
- Frequently asked questions
A sudden illness or injury can derail your income in an instant, and without a financial backup, the consequences can be long-lasting. Disability insurance in Canada provides essential income protection when you’re unable to work due to medical reasons.
The need for disability insurance coverage is more urgent than ever. According to Statistics Canada, as of 2022, over 8 million Canadians aged 15 and older were living with at least one disability. This staggering figure shows how common and unpredictable disability can be.
In this blog, we will break down how to get the best disability insurance in Canada, highlight the most affordable providers, and share expert tips on how to buy the best plans with comprehensive coverage.
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What is disability insurance?
Disability insurance provides income protection when a physical or mental health condition prevents you from working. If you become unable to perform your job due to illness or injury, this coverage allows you to replace a portion of your after-tax income, helping you manage essential expenses like rent, groceries, medical bills, and loan payments.
To file a disability claim, your physician must provide ongoing medical documentation confirming that your condition continues to prevent you from performing regular job duties. This applies to both physical disabilities and mental health conditions, such as anxiety, depression, or other psychiatric disorders.
In Canada, short-term disability (STD) provides immediate income support, often covering up to 100% of your income for a few weeks to six months. Long-term disability (LTD), on the other hand, offers extended support by replacing 60% to 80% of your income, sometimes up to age 65 if your condition persists.
What factors affect the cost of disability insurance in Canada?
Several factors, such as an applicant’s age, health status, occupation, coverage amount, and policy type, may influence the cost of the best disability insurance in Canada, and knowing how they work can help you choose affordable yet effective coverage.
- Age: Younger applicants typically pay lower premiums, as they pose a lower risk of developing a disability
- Health status: Your medical history, lifestyle, and any pre-existing conditions directly affect your rates
- Occupation: High-risk jobs, such as construction or manual labor, tend to have higher premiums than office-based roles
- Waiting period: A longer waiting period before benefits begin can lower your monthly premium
- Benefit period: Shorter coverage durations cost less, while policies that pay until age 65 are more expensive
- Coverage amount: If you are looking for a higher coverage amount that can replace a bigger portion of your income, you may have to pay a higher premium
- Policy type: Short-term disability (STD) policies are generally cheaper than Long-term disability (LTD) plans
Which are the best disability insurance companies in Canada?
- Canada Life: Best for comprehensive riders
- Desjardins: Best for top-up coverage
- Edge Benefits: Best for simplified underwriting
- Humania: Best for non-medical plans
- Manulife: Best for combo plans
- RBC Insurance: Best for working professionals
1. Canada Life – Best disability insurance for comprehensive riders
Canada Life offers one of the best disability insurance options in Canada for those seeking a highly customizable policy. With a wide range of riders and add-ons, policyholders can tailor their coverage to match their unique financial and lifestyle needs.
Its flexible structure, competitive pricing for desk-based or light manual occupations, and optional benefits make it ideal for those who prefer customised plans.
Key features of Canada Life
- Canada Life offers “own occupation” coverage for job class categories 3A and 4A
- It offers a wide range of riders, including Accidental Death & Dismemberment, Return of Premium, and Catch-Up Rider
- It is ideal for white-collar and light manual workers seeking competitive disability insurance pricing
- Healthcare worker discounts are available for Canada Life disability plans
- It has a strong reputation in the Canadian insurance market for long-term financial protection
- Some of the available disability benefit periods include 2 years, 5 years, or up to age 65
Why PolicyAdvisor recommends Canada Life
- Canada Life lets you build a personalized disability insurance plan with flexible rider options such as Return of Premium, Regular Occupation, Own Occupation, etc
- It is one of the best disability insurance providers in Canada for customization and rider availability
- It is often more affordable than competitors like RBC for less specialized job roles
- It offers excellent coverage value for desk job employees and healthcare professionals
Things to consider
- Premiums may be slightly higher for professionals in higher-rated job classes (4A)
- COLA (Cost of Living Adjustment) and Future Income Option benefits are more limited compared to some competitors
- Riders can add flexibility, but they can also increase the total cost of your policy
2. Desjardins SOLO – Best disability insurance for top-up coverage
Desjardins SOLO disability insurance offers one of the most affordable and flexible top-up options for Canadians who already have partial coverage through their employer or a group plan. It works best as a supplemental plan, providing crucial benefits that fill coverage gaps.
One of its standout features is the guaranteed non-integrated monthly benefit of up to $1,200 for the first 36 months, regardless of other disability income sources. This ensures policyholders receive a reliable monthly payment even if they also claim benefits from another policy.
Desjardins also includes valuable built-in features like a death benefit and no-cost waiting periods, making it a cost-effective option for those seeking additional protection.
Key features of Desjardins SOLO disability insurance
- This plan pays non-integrated benefits up to $1,200/month for 36 months, even if you receive other disability income
- It has lower premiums as compared to many competing insurers in Canada
- It excludes waiting period charges, keeping initial premiums more affordable
- This plan includes a death benefit that equals five times the monthly disability payment
- It offers guaranteed renewability, so coverage continues as long as you pay your premiums
Why PolicyAdvisor recommends Desjardins SOLO
- It works perfectly as a supplement to group or employer-sponsored disability coverage
- It delivers fixed, non-integrated payouts during the critical early phase of a disability
- This plan reduces the need for add-ons with strong built-in benefits
- It appeals to budget-conscious Canadians who want added security without paying for comprehensive standalone plans
- This disability insurance supports newcomers and work-permit holders who’ve lived in Canada for at least one year or applied for permanent residency (PR)
Things to consider
- Desjardins uses non-guaranteed premiums for its Term 10 (T10) and Term 65 (T65) plans. This means the company can raise or lower premiums across the entire policyholder group based on its overall performance.
- The policy has more exclusions and limitations compared to other disability insurance providers
- The coordination of benefits clause may reduce your monthly payout after 36 months or if your total disability income exceeds $1,200
- It may not offer enough protection if you need primary, comprehensive disability insurance
3. Edge Benefits – Best disability insurance for simplified underwriting
Edge Benefits offers one of the best disability insurance options in Canada for individuals who want a quick and hassle-free application process. With simplified underwriting, applicants can qualify with fewer medical questions and minimal documentation, making it an ideal choice for those with minor health concerns or limited time.
While this disability insurance coverage may not be as extensive as traditional plans, Edge Benefits delivers strong value with guaranteed injury coverage, optional zero-day waiting periods, and flexible short-term protection up to age 70.
Key features of Edge Benefits
- This policy offers simplified underwriting with limited medical questions
- Injury coverage is guaranteed within this policy, even if illness coverage is declined
- It contains an optional 0-day waiting period, allowing for short-term disability insurance use
- This plan includes a $10,000 accident medical treatment benefit
- This policy offers a maximum monthly benefit of $5,000 for 2A/3A, and $6,000 for 4A occupations
- It provides coverage up to age 70, longer than many competitors
Why PolicyAdvisor recommends Edge Benefits
- It is best for those who want easy access to disability insurance in Canada
- It is a great option if you prefer simplified underwriting over traditional medical exams
- This plan offers reliable injury-only coverage with fast approval
- It is ideal for self-employed or blue-collar workers who need short-term protection
Things to consider
- Edge Benefits may deny illness coverage based on your health history
- No comprehensive long-term disability coverage options are available within this policy
- This plan offers lower benefit maximums compared to major insurers
- It is not suitable as a standalone long-term protection plan
4. Humania – Best disability insurance for non-medical plans
Humania offers one of the best disability insurance solutions in Canada for individuals who may not qualify for traditional policies. Through its Insurance Without Medical Exam (IWME) disability income plan, Humania provides essential financial protection for those unable to work due to illness or injury, without requiring a medical exam.
Humania is also known for providing partial disability coverage. This plan serves as a lifeline for seasonal workers, part-time employees, gig workers, and self-employed individuals, who often face challenges securing standard disability coverage.
Key features of Humania
- This policy offers Insurance Without Medical Exam (IWME) disability insurance that requires no medical exam
- It is available for Term 10 or Term 20, which is ideal for short-to-mid-term coverage needs
- The monthly disability benefit for this plan is capped at $6,000, depending on eligibility
- This plan contains a unique offering of up to $1,000/month coverage for part-time and seasonal workers
- It also offers the ability to bundle disability with life and critical illness insurance
- Premiums for this policy remain guaranteed for the first 5 years of the term
Why PolicyAdvisor recommends Humania
- Humania is one of the best disability insurance options in Canada for applicants with health conditions or non-traditional income sources
- It provides accessible coverage for self-employed, freelance, and part-time workers
- The no-medical application ensures faster approval and a simplified process for policyholders
- Only a few Canadian insurers offer guaranteed issue disability products like Humania
Things to consider
- The overage amounts are limited, especially for part-time and seasonal workers
- There is no option for coverage up to the age of 65 with guaranteed issue products
- The monthly benefit caps may not suit higher-income earners
- Premiums are only guaranteed for 5 years, after which they may increase
- The coverage for partial disabilities might be limited in duration (e.g., 6 to 12 months in some plans)
5. Manulife Synergy: Best disability insurance for combo plans
Manulife Synergy® stands out as one of the best disability insurance options in Canada for individuals seeking an all-in-one solution that includes long-term care conversion. This unique 3-in-1 policy combines life, disability, and critical illness insurance, offering comprehensive financial protection through a single, simplified plan.
The disability coverage for this plan is about 0.5% of the total policy coverage, which ranges from $100,000 to $500,000. Manulife ensures flexibility and stability for those without access to group benefits, especially self-employed Canadians and small business owners.
Key features of Manulife
- This policy combines disability, life, and critical illness insurance in one bundled plan
- It offers coverage between $100,000 and $500,000 under a unified policy
- This policy allows conversion to permanent insurance up to age 65
- It also contains optional term life riders (10-year renewable or to age 65) and child coverage up to age 25
- This policy offers early benefit access, meaning some payouts are available before the waiting period ends
Why PolicyAdvisor recommends Manulife
- One of the best disability insurance choices in Canada for those seeking a one-stop solution without spending on three different types of insurance policies
- It is ideal for the self-employed or anyone lacking employer-sponsored insurance
- It reduces complexity with a streamlined application and policy structure
- This plan provides multi-risk protection for Canadians looking to secure their financial future
Things to consider
- The disability claim payout is only 0.5% of the entire Synergy protection amount, meaning you may not receive enough to cover your monthly requirements
- Fixed coverage amounts limit flexibility for customizing individual components
- There is a waiting period of 90 days during which you cannot make a disability claim
- It is not suited for those who want standalone disability insurance with higher limits
6. RBC Insurance – Best disability insurance for working professionals
RBC Insurance offers one of the best disability insurance options in Canada, especially for professionals, self-employed individuals, and small business owners. With tailored coverage packages based on occupation type, RBC delivers flexible, high-value policies.
It is ideal for those in fee-for-service professions like doctors, consultants, and lawyers. RBC Insurance is also quite popular among working professionals due to its 20% premium reduction feature, which helps them secure comprehensive coverage at a cheaper price.
Key features of RBC Insurance
- This policy offers customized plans for professionals, self-employed workers, farmers, and small business owners
- This plan offers a 20% premium reduction for software professionals, accountants, architects, medical specialists, lawyers, judges, engineers, computer experts, and dental specialists
- It includes a bundle of essential disability insurance riders at the base price
- The Cost of Living Adjustment (COLA) rider offers superior benefit value
- It offers Family Compassionate Care Benefit for added support during family illness
- Future Income Option (FIO) rider allows for high benefit limit increases
Why PolicyAdvisor recommends RBC Insurance
- It is one of the best disability insurance providers in Canada for established professionals
- This plan provides flexible coverage tailored to various occupations and income types
- It combines value and customization with robust built-in riders
- It is backed by Canada’s largest bank, ensuring long-term policy reliability
Things to consider
- The own occupation rider is available only to specific high-income occupations
- Premiums may be higher for lower job classes or manual occupations
- No premium refund rider is available with this policy
- It may be less cost-effective for those needing basic or short-term disability insurance
Methodology: How we ranked the best disability insurance in Canada
Our expert team of licensed insurance advisors at PolicyAdvisor conducted thorough research to evaluate and compare Canada’s top disability insurance companies. We assessed each provider based on the following critical criteria:
- Term lengths: We analyzed short-term and long-term disability insurance options to identify flexibility and suitability for different needs
- Waiting periods: We reviewed elimination periods to determine how quickly policyholders can access benefits after a claim
- Premium rates: We compared monthly premium costs to find providers offering affordable disability insurance without compromising coverage
- Application process: We evaluated how simple or complex the underwriting and approval processes are, including options for no-medical plans
- Online accessibility: We considered whether applicants could easily get quotes, apply, and manage their disability insurance policies online
- Financial strength ratings: We looked at third-party financial ratings (e.g., AM Best) to ensure long-term claims-paying ability and company stability
- Plan features and customization: We assessed riders, conversion options, and built-in benefits to see which providers offer the most customizable disability plans
Key factors to consider when applying for disability insurance
When choosing a disability insurance policy in Canada, it’s best to look beyond the price. Several technical features, such as how your insurer defines disability, the waiting period, and the coverage amount, will determine how much protection you receive.
- Definition of disability: Insurers define “disability” in three main ways:
- Own occupation pays benefits if you can’t perform your specific job or specialized profession
- Regular occupation covers you if you can’t work in your field, but ends benefits if you take another job
- Any occupation offers the least protection. If you can work in any role, even one unrelated to your training, you won’t qualify for benefits
- Waiting period: This is the time you must wait after becoming disabled before benefits begin. Longer waiting periods lower premiums but require you to cover all expenses until payments start. If your condition resolves during this time, you receive no payout
- Coverage amount: Short-term disability insurance often covers 70% to 100% of your income. Long-term disability typically replaces 50% to 70%, which may not be enough for most Canadians. Consider topping up your coverage with an individual plan to ensure long-term financial stability
How to get the best disability insurance quotes in Canada?
To get the best disability insurance quotes in Canada, start by comparing multiple providers to find a policy that matches your income protection needs. PolicyAdvisor makes this process fast and easy by partnering with Canada’s top disability insurance companies, giving you access to a wide range of competitive options in one place.
You can receive personalized and instant disability insurance quotes in under 60 seconds by answering a few simple questions online. Once you choose a plan, our licensed insurance experts offer free advice and ongoing after-sales support, ensuring you understand your coverage and stay protected long term. Schedule a call with us today and stay protected against all adversities in life!
Frequently asked questions
Is disability insurance worth it in Canada?
Yes. For most Canadians, disability insurance is valuable as it can cover living expenses, debts, and other financial obligations during periods of short- or long-term disability, effectively replacing a portion of their income.
How much do most people pay for disability insurance?
If your short-term disability insurance is part of your employer benefits, you pay little to no premiums. However, if you opt for a private policy, your premium is determined by your salary and occupation (among other factors), with basic injury-only coverage starting at $10/month.
Long-term disability insurance typically costs between 1% and 3% of your annual income. For example, if you earn $40,000 (before taxes), you can get a policy offering $2,500 in monthly benefits for around $24/month (with a 2-year benefit period) or $43/month (with coverage to age 65).
What percentage of my income is covered by disability insurance?
Short-term disability insurance typically covers 70-100% of your income, while long-term disability insurance covers 50-70% of your gross income. The exact percentage for both depends on your specific policy and insurer.
Can you work on long-term disability in Canada?
Yes, some policies allow you to work while receiving long-term disability benefits. However, they usually limit the income you can earn and the work you can do. Violating these terms could result in the termination of your benefits.
We researched the Best Disability Insurance in Canada so you can pick the best policy for your needs! The top of our list of best disability insurance includes Canada Life, Manulife, RBC, and more! Learn what disability insurance is, which companies offer the best long-term coverage, and why one should choose one company’s coverage over another.
Statistics Canada. A Demographic, Employment and Income Profile of Canadians with Disabilities Aged 15 Years and Over, 2022.
