Key features to understand
- Monthly benefit: usually a portion of your income, set by insurer limits
- Waiting (elimination) period: how long you must be disabled before benefits start, commonly 30, 90 or 120 days
- Benefit period: how long benefits can be paid, for example 2 years, 5 years or to age 65
- Definition of disability: “own occupation” is generally broader than “any occupation”. This is one of the most important parts of the contract.
- Optional riders such as partial disability, cost-of-living adjustments and future insurability
Who should look at it
- Self-employed people and business owners without group coverage
- Employees whose group plan is limited or would be taxable
- Trades and physical jobs, where an injury can stop income immediately
If you chose not to add income replacement to your auto policy after the July 2026 changes, disability insurance becomes even more important. It also covers illness and injuries that have nothing to do with driving.
Coverage descriptions are general. Your policy wording, limits and exclusions determine what is covered. Availability and premiums vary by insurer and by your circumstances.