Disability insurance: doesn't the province cover that? Isn't it baked into my employee benefits? Myths abound when it comes to crucial coverage that protects your paycheque.
But here's one thing we know for sure: no one's immune from illness or injury. As a lawyer, you know more than most the value of reading the fine print. Let's look at a few persistent myths and check their sources.
But first, what is disability insurance? Disability insurance provides you with regular monthly income if you're unable to work due to an illness or accident. Think of it as income protection for the rest of your working life.
Myth #1. "I don't need it. I'm young and healthy."
The reality: Disability doesn't discriminate by age or physical condition.
According to the 2022 Canadian Survey on Disability, the national disability rate has risen five percentage points since 2017.1 This increase is partly due to our aging population—but there's also been a significant rise in disability related to mental health among younger adults.
Disability can stem from chronic illness, injury, or mental health issues. Without income protection, the consequences can be long-lasting. Imagine covering your mortgage payments without a paycheque. The stress alone is reason enough to consider your options.
Disability insurance is the financial safety net that helps you navigate a tough situation. Think of it as a smart investment in your career and your future stability.
Myth #2. "My workplace plan covers me."
The reality: Even the best group plans cover between 60% and 85% of your gross income—often closer to the lower end.2
Employer plans can be a helpful base, but coverage varies widely. It often ends when your job does, and it likely wasn't tailored to your specific needs. If your group coverage doesn't go far enough, consider topping it up with an individual policy that fills the gaps.
Myth #3. "It's too expensive."
The reality: Premiums may feel like a stretch—but a long-term disability can cost tens of thousands over time.
Even if you have sick days or an emergency fund, those aren't substitutes for long-term income protection.
Fortunately, disability insurance is flexible. You can choose short-term coverage that pays benefits for a few weeks—or long-term coverage that lasts until age 65. The key is to find a balance between your budget and your risk.
Myth #4. "Government programs have me covered."
The reality: Public programs like workers' compensation offer limited support—and only in specific situations.
It's true that disability insurance policies can include exclusions, such as pre-existing conditions, self-inflicted injuries, or high-risk activities. And not all policies cover mental health conditions like depression.
But government programs only apply in narrow circumstances, like a workplace injury. They don't provide full income replacement.
That's why it's essential to understand the terms of your own policy—and talk to an advisor who can help you coordinate private and public coverage for maximum protection.
We can help
Disability insurance isn't just a "nice to have." It's an essential safeguard for your income, your lifestyle, and your peace of mind. Yes, the myths can create doubt. But once you understand what's at stake, the case for coverage is clear. Ask a Lawyers Financial advisor about insurance that will work for you when you can't.
Footnotes
1. Statistics Canada, "Canadian Survey on Disability, 2022," Release date: December 1, 2023.
2. Financial Consumer Agency of Canada, Understanding Disability Insurance
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
