What is disability insurance?
Definition
Educational information only. Last reviewed August 25, 2026.
How it works in Canada
The contract's definition of disability — own occupation, regular occupation or any occupation — determines when benefits are payable. Personally paid premiums generally result in non-taxable benefits, while employer-paid plans are often taxable.
Example
A self-employed professional with a 90-day waiting period must fund the first three months of a disability from savings before benefits begin.
Learn more
Written and reviewed by CanadaGFI.ca Editorial Team
Licensed insurance and financial professionals contributing to CanadaGFI.ca
Published and last reviewed August 25, 2026. Read our editorial policy and disclosures.
This page is educational information about Canadian financial concepts. It is not personalized financial, tax, insurance or legal advice, and it does not consider your individual circumstances. Product availability, eligibility, pricing and tax treatment depend on the provider, your situation and current Canadian rules. Speak with a professional licensed in your province before acting.
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