Disability insurance provides part of your income if you’re unable to work for an extended period due to illness or injury, offering essential financial support during such times​​.

Top Reasons to Consider Individual Disability Insurance in Canada

• Taxation Advantages: Group insurance benefits are often taxable if the employer pays the premium. In contrast, individual policies paid with after-tax dollars typically provide tax-free benefits​​.
• Return of Premium Benefit: One of the significant advantages of individual disability insurance policies is the “return of premium” rider. This feature allows for a refund of a portion of the premiums paid (often 50%) if no claim is made over a specified period. This benefit is a compelling reason to opt for individual coverage, as it offers a form of financial return in the absence of a claim, a feature typically not available in group plans​​.
• Changing Employment Landscape: With frequent job changes common today, group disability coverage can vary significantly between employers. Some may not offer any coverage, making an individually owned policy, which remains consistent regardless of your job, a crucial safety net​​.
• Cost Benefits: Group disability policies, while initially cheaper, may become more expensive over time due to collective risk factors and tiered cost structures. In contrast, individual policies often provide more affordable long-term costs and superior benefits​​.
• Additional Riders and Benefits: Individual plans allow for optional benefits like a return of premium rider, future purchase options, and extra travel insurance coverage, offering more extensive and customizable coverage compared to group plans​​.
• Coverage Security: Group or association coverage can be canceled or altered by insurers, leaving you without support when needed most. Individual policies are usually non-cancellable, ensuring your coverage remains intact​​.
• Guaranteed Premiums: Group disability coverage premiums can increase significantly over time. An individual policy locks in your premiums, providing financial predictability​​.
• Comprehensive Definitions of Disability: Personal disability policies usually offer broader definitions of disability, ensuring better protection in varied circumstances compared to more restrictive group policies​​.
• “Own Occupation” Rider: Individual plans often include an “own occupation” rider, offering continued benefits even if you’re able to work in a different occupation, a feature less common in group plans​​.
• Portability: Individual policies are portable across different jobs, providing consistent coverage irrespective of your employment status or changes​​.
• High Disability Risk: With nearly a 1 in 3 chance of becoming disabled for over 90 days before age 65 in Canada, ensuring comprehensive and total coverage through an individual policy is a prudent decision​​.

Considering the limitations of group disability insurance in Canada, adding an individual disability insurance policy can provide more comprehensive, flexible, and cost-effective coverage, ensuring financial stability and peace of mind.