1. Income Replacement: Disability insurance typically replaces between 60% and 85% of your income if you are unable to work due to a disability. This income replacement can be vital in covering everyday expenses, such as mortgage payments, utilities, and groceries.

2. Types of Coverage: There are two main types of disability insurance: short-term and long-term. Short-term disability insurance provides benefits for a limited period, usually up to six months, while long-term disability insurance offers coverage for extended periods, potentially until retirement age, depending on the policy.

3. Eligibility and Benefits: To qualify for disability benefits, you must meet the policy’s definition of disability, which can vary between insurers. Some policies may require you to be unable to perform your current job, while others may require you to be unable to perform any job. Benefits are typically paid monthly and can be tax-free if you pay the premiums yourself.

4. Government Programs: In addition to private disability insurance, there are government programs available to Canadians. These include Employment Insurance (EI) sickness benefits, which provide short-term financial assistance, and the Canada Pension Plan (CPP) disability benefits, which offer long-term support for those with severe and prolonged disabilities.

5. Additional Features: Many disability insurance policies offer optional features, such as cost-of-living adjustments to account for inflation, and return-of-premium riders, which refund a portion of your premiums if you don’t make a claim within a specified period.