Why Disability Insurance Matters

A 35-year-old has a 35% chance of experiencing a disability lasting 90+ days before retirement. Long-term disability insurance replaces 60-70% of income if you can't work due to injury or illness. A $100,000 income = $60,000/year coverage benefit.

Disability Insurance Sources in Canada

• Employer group plans: Most effective (covers 60-70% income), costs employee ~$50-200/month
• Individual DI policies: Essential for self-employed, costs $100-400/month for $5,000/month benefit
• CPP-D (Disability Benefit): Only ~$17,000/year max, requires severe disability

Key Policy Features

Look for: 90-day elimination period (matches group plans), benefit period to age 65, "own occupation" definition (you can't do your job, not just any job), and indexing to inflation.