Disability insurance
Disability insurance: a monthly income if you can no longer work
Illness or accident: your ability to earn an income is your most valuable asset. Disability insurance pays you a monthly benefit while you recover.
- Tax-free monthly benefit (when you pay the premium)
- Employees, self-employed and professionals
- Choice of waiting periods and benefit durations
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What is disability insurance?
Disability (or income replacement) insurance replaces part of your income — usually 60 to 85% of net income — if an illness or accident prevents you from working. Benefits are paid monthly after a waiting period, for a set duration or until age 65.
It is distinct from critical illness insurance (lump sum at diagnosis) and from public plans (QPP, CNESST, SAAQ, employment insurance), whose criteria are restrictive and amounts limited.
At a glance
- Benefit
- Monthly, up to age 65
- Waiting period
- 30, 60, 90 or 120 days
- Taxation
- Tax-free if you pay the premium
- Coverage
- Illness and accident
Free · No obligation · An advisor compares insurers for you
How it works
- 1
We establish the amount to protect
Based on your income, fixed expenses and coverage already in place (group plan, QPP). The maximum depends on income and occupation.
- 2
You choose the waiting period
Period without benefits after the disability begins: 30, 60, 90 or 120 days. The longer it is, the lower the premium.
- 3
You choose the benefit period
2 years, 5 years or to age 65. For a long-term disability, coverage to 65 makes all the difference.
- 4
If disabled, you receive your benefit
After the waiting period, the insurer pays the benefit each month, as long as you meet the contract's definition of disability, until you return to work or the period ends.
Advantages
- Replaces the income your mortgage, bills and family depend on
- Tax-free benefits when you pay the premium yourself
- Non-cancellable, guaranteed-premium contracts: the insurer can neither cancel nor change the premium
- "Own occupation" definition available: you are paid if you cannot do your job, even if you could do another
- Personal coverage that follows you from one employer to the next, unlike a group plan
- Options for self-employed and professionals: business overhead, buy-out, future income
Things to consider
- Premiums are higher than for life insurance, especially for manual trades and high-risk occupations
- Underwriting considers occupation, documented income and health history; exclusions (back, mental health) may apply
- Benefits are coordinated with other sources (group plan, QPP, CNESST) so they do not exceed income
- Income must be documented (notices of assessment) — important for the self-employed
- An "any occupation" or "reasonable occupation" definition lowers the premium but also the cases where you get paid
Options and riders
Disability insurance is highly customizable. Here are the most useful options depending on your situation.
Own occupation
You are considered disabled if you cannot perform your regular occupation, even if you are able to do other work. Essential for professionals and skilled trades.
Partial or residual disability
Proportional benefit if you return to work part-time or with a loss of income.
Benefit indexing
The benefit increases each year during disability to keep pace with the cost of living.
Future insurability
Lets you increase the benefit as your income grows, without new evidence of health.
Return of premium
Part of the premiums paid is refunded after a claim-free period (depending on the insurer).
Business overhead expense
For the self-employed: reimburses rent, salaries and fixed business costs during disability.
Waiver of premium
No more premiums to pay while you receive benefits.
Critical illness protection
Lump sum added to supplement the benefit at diagnosis of a covered illness.
Group plan or individual insurance?
Many people overestimate the protection of their workplace plan. The two complement each other.
| Criterion | Employer group plan | Individual disability insurance |
|---|---|---|
| Portability | Ends with the job | Follows you throughout your career |
| Premium | Often partly paid by the employer | Paid by you, not deductible |
| Benefits | Often taxable (if the employer pays) | Tax-free |
| Definition of disability | Own occupation 2 years, then any occupation | As chosen, up to age 65 |
| Amount | Capped; may ignore bonuses and commissions | Based on total documented income |
Who is it for?
- Self-employed workers and business owners, who have no group plan
- Professionals (health, engineering, law, finance) whose income depends on specific expertise
- Employees whose group plan is limited or non-existent
- Trades workers (construction, transport, industry) exposed to accidents
- Anyone whose family depends on a single income
Options to compare with your advisor
Trademarks of their respective owners. Sommet Protection is not affiliated with any insurer and does not distribute any product.
How it works
- 1
Request your callback
Your coverage, your first name, your mobile: three answers are enough. The rest is optional.
- 2
An advisor contacts you
Your request goes to one partner advisor, who calls you at a time that suits you. You follow the progress live.
- 3
Receive your scenarios
You get clear options, with the advantages and limits of each. You decide.
Frequently asked questions
How much income can I insure?
Usually 60 to 85% of your net income, up to a monthly cap set by the insurer, taking into account other coverage in place. Your advisor calculates the amount with your notices of assessment.
Are benefits taxable?
No, if you pay the premium personally with after-tax money. They are taxable if an employer pays the premium and deducts it.
Which waiting period should I choose?
It depends on your savings and your workplace plan. A 90-day period is a good compromise for many people: it costs much less than 30 days and an emergency fund covers the first weeks.
Are mental illness and back problems covered?
Yes in most standard contracts, subject to exclusions written in the contract. They are the most frequent causes of disability, which is why these clauses should be checked before signing.
I am self-employed with irregular income: am I eligible?
Yes. The insurer uses the average of your income over recent years. Some products offer a predefined lump-sum benefit with no proof of income at purchase.
What do QPP or CNESST already cover?
QPP pays a pension only for severe and permanent disability, and CNESST only covers work-related accidents and illnesses. EI sickness benefits are time-limited. These plans do not replace disability insurance.
Can the premium increase?
Not in a non-cancellable, guaranteed-premium contract. In a "guaranteed renewable" contract, the insurer may adjust the premium for a whole class of insureds, but not for you alone.
Complementary coverage
Our coverage
Choose the coverage you're interested in — your advisor can also combine them.
Life insurance
Term, permanent, universal, participating or simplified issue: understand the differences, then let an advisor compare insurers for you. Free and without obligation.
Learn moreTerm life insurance
Cover your mortgage, your debts and your family's income for a specific period. Your advisor compares terms, premiums and options from several insurers.
Learn morePermanent life insurance
Coverage designed to last a lifetime, provided the policy stays in force. Depending on the product, premiums and cash values may be guaranteed or variable.
Learn moreUniversal life insurance
Lifetime insurance paired with an investment account you control. You decide the amount deposited, the funds selected and the pace of deposits, within tax limits.
Learn moreParticipating life insurance
Permanent insurance whose death benefit and value increase each year through dividends paid by the insurer — without you having to manage investments.
Learn moreSimplified issue life insurance
A few health questions, no blood test, no medical appointment. Coverage that stays accessible even if you were declined elsewhere or have a health history.
Learn moreCritical illness insurance
At diagnosis of a covered illness, you receive a tax-free amount to use as you wish: care, time off, help at home, debts. No requirement to be unable to work.
Learn moreSommet Protection is a marketing company: it is neither a firm nor an insurer, does not sell insurance and gives no advice. This site does not allow you to purchase insurance online. Your request is passed on to an independent, AMF-certified partner financial security advisor who will contact you to analyze your needs. Eligibility and premiums are established by the insurer after reviewing your file. Product descriptions are provided for information purposes and do not replace the insurance contract, which alone prevails.