Your income is your biggest asset. Most Canadians don't insure it.
1 in 3 Canadians will be disabled for 90+ days before retirement. EI Sickness Benefits cap at $695/week (26 weeks max). After that — nothing. Disability insurance fills the gap, sometimes until you turn 65.
★ THE EI GAP ★
What government covers (spoiler: not much)
EI SICKNESS BENEFITS$695/wk26 weeks max · ~$18,070 total
Federal program
Need 600 insurable hours in past year
Self-employed: NOT eligible (unless opted in)
1-week waiting period
Stops at week 26
YOUR GAP (4 MONTHS OFF)$11,930Your income $30,000 − EI $18,070
Mortgage / rent: ~$2,500-4,000/mo
Food / utilities: ~$1,200-2,000/mo
Medications + treatment costs
Loss of benefits (drug plan)
You're out $11,930 in 4 months
LONG-TERM DISABILITY (LTD)60-85%Of income · until 65 · tax-free
Fills the gap after EI
Pays for years (or to age 65)
Self-employed eligible
Own-occupation = best protection
Premium: 1-3% of income
★ THE DEFINITION THAT MATTERS ★
"Own-occupation" vs "Any-occupation"
OWN-OCCUPATION (the good one)Inability to do YOUR jobDefinition: you can't perform the duties of your specific profession
Surgeon with hand tremor? Can't operate → DISABLED. Even if you could become a podcast host, you collect full benefits.
Cost: 30-40% more than any-occ. Worth it for specialized professionals (doctors, dentists, lawyers, engineers).
ANY-OCCUPATION (the cheap one)Inability to do ANY jobDefinition: you can't perform any job you're reasonably qualified for
Surgeon with hand tremor? Could be a hospital administrator → NOT DISABLED. Benefits stop or never start.
Common in: Group plans switch from "own" to "any" after 2 years — read your benefits booklet carefully.