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The 5 W’s (and H) of Disability Insurance

PROLINK Blog

The 5 W’s (and H) of Disability Insurance

January 29, 2020

What’s your most valuable asset? Is it your home or your car? Maybe it’s an investment or a rare collector’s item. Well, what about your earning potential? The truth is…your greatest asset isn’t always something you own, it’s often your ability to earn a steady income.

But what if that earning power was compromised? What if you suffered a life-altering illness or injury? How would you provide for your family? How would you provide for yourself? With dwindling savings and no earning power, it’s pretty easy to spiral into a financial mess of debt and desperation.

Disability insurance can help. Intrigued? We’ve listed the 5 W’s (and H) of Disability Insurance below to help you learn more.

Graphic to represent claims information from PROLINK

WHAT is Disability Insurance?

Disability insurance protects your income if you’re unable to work because of a serious physical injury or ailment. Payments can be short-term or long-term and will end when you start working again or retire. 

Whether it’s a temporary or permanent injury, you’ll receive anywhere from 60-85% of your monthly salary (tax-free!) up to a specified period of time. 85% tax free is better than working.

WHO needs Disability Insurance?

Everyone. But especially you if you:

  • Work in an injury-prone or physically intensive position (construction, farming, trades);
  • Earn a high income or are in a specialized role (higher earnings, higher expenses);
  • Are self-employed (you might not have access to traditional employer benefits);
  • A business owner (how would you run your company?);
  • Have dependents (who else would support your family?);
  • Have no dependents (who’d support you?);

Regardless of what job you have, if you rely on a paycheck, you need to at least consider disability coverage.

WHEN should you get Disability Insurance?

When it comes to disability, people usually jump to the worst-case scenario: a horrific accident, quadriplegia, amputation–you get the picture. But the most common causes of disability claims are actually back pain, stress, fatigue, digestive disorders, pregnancy complications, diabetes, and heart attacks. 

So when should you get insurance? Sooner rather than later. The older you are, the likelier you are to get hurt, and the higher your premium will be.

WHERE do you get Disability Insurance?

If you’re not self-employed, your employer might cover you. But they will usually cap the maximum you can receive based on your salary (if you earn more than $50,000). And your payout may be taxable. 

Your best bet? A private, portable plan (possibly through your association) where you can customize coverage to your needs. A comprehensive, cost-effective plan that’ll stay with you across employers or job changes.

WHY do I need Disability Insurance?

Serious injuries aren’t just stressful; they’re also financially draining. Even a week or two without a paycheck is tough for most people and in the absence of a salary, your savings can dry up quickly. 

Depending on your condition, you might need medication, medical equipment, outside care, or long-term physiotherapy. Not to mention all the indirect costs of living with a disability, like travel expenses, childcare, and cleaning services. 

On top of that, there’s your mortgage. And your loans. And groceries. 

If you already have employer benefits, still consider private insurance to supplement your existing plan. Remember, you’ll only get a portion of your salary, and while that might be enough to cover your everyday expenses, it may not be sustainable for long.

HOW do I get Disability Insurance?

With the help of a broker that’ll take the time to understand your lifestyle, your budget, and your needs to find the best solution possible. 

We get it. It’s hard to picture a future where you can’t work if you’re in perfect health right now. But you never know when you’ll suffer a disability. Even a small accident or fall on your way home can leave you hospitalized or bedridden for months. And the stress of worrying about the money for your next bill might make you even sicker. 

That’s where we come in. PROLINK will help you protect your greatest assets—your home, your car, and most importantly, your earning power—so you can focus on what’s most important—your recovery. 

Contact PROLINK to learn more about your options today or fill out our quick questionnaire to receive a tailored quote!


PROLINK’s blog posts are general in nature. They do not take into account your personal objectives or financial situation and are not a substitute for professional advice. The specific terms of your policy will always apply. We bear no responsibility for the accuracy, legality, or timeliness of any external content.

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