Accidents or illnesses can occur at any time. Do you and your employees have sufficient income replacement insurance to protect your current lifestyle?

Disability Income Replacement Insurance (or income insurance) is designed to compensate an employee for the loss of income due to an absence from work, a solution for income replacement. A disability can result from a number of causes, including an injury, a serious illness or a mental health issue.

Generally, Disability Income Replacement Insurance replaces between 60% and 85% of regular income, up to a maximum amount, for a specified time if your employee:

  • temporarily cannot work; or
  • is permanently disabled due to an injury or illness.

The duration of a disability can be either short or long-term.

Short-Term Disability

Short-Term Disability coverage is designed to provide immediate income replacement benefits for employees who are unable to work due to an injury or illness. Short-term disability benefits are generally payable for a period of 4 to 6 months, which coincides with waiting periods for Long-Term Disability. The benefit replaces a percentage of the employee’s weekly pay up to a specified maximum. Once the end of the coverage period is reached, an employee would transition to long-term disability coverage as long as they continue to meet the definition of total disability.

Short-Term Disability plans that meet the requirements established by Employment Canada qualify for an Employment Insurance premium reduction.

Long-Term Disability

Annual IncomeAGE 30 Total earnings until age 65AGE 40 Total earnings until age 65AGE 50 Total earnings until age 65

Your lifestyle depends on the income you generate. Should an illness or injury prevent you or an employee from working for an extended period of time, the loss of income will greatly impact your lifestyle and ability to provide for yourself or loved ones.

Disability Income Replacement Insurance is a crucial protection. It provides a monthly income while you are unable to work and can be used towards maintaining your family’s lifestyle, covering everyday expenses, paying medical bills and more, so you can focus on your recovery without the burden of financial worries.

BFL CANADA can help you make sense of the options available and design the ideal Disability Income Replacement Insurance program for your business.


To learn more about Disability Income Replacement Insurance, we invite you to reach out to us.

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BFL CANADA Consulting Services Inc.