Income protection options in Canada compared
Public benefits, group plans and individual policies side by side: what triggers payment, how long it lasts and what to watch for.
Each row is a type of coverage, not a provider. Most Canadians who work for an employer have several layers at once, and they interact: a group LTD plan usually reduces its benefit by any CPP or QPP disability benefit, and EI sickness benefits are reduced by some employer wage-loss payments. Read across a row to see when it pays, then down the table to see where your gaps are. Government amounts are 2026 figures; premiums are not shown because they depend on age, health and plan.
Select a column header to sort.
| Option | What triggers payment | How much and how long | Watch out for |
|---|---|---|---|
| EI sickness benefits | Unable to work for medical reasons, with 600 insurable hours in the qualifying period | 55% of average insurable weekly earnings, up to $729 a week in 2026, for up to 26 weeks after a one-week waiting period | Taxable; medical certificate required; self-employed only if registered in advance |
| CPP disability benefit (QPP disability pension in Quebec) | Severe and prolonged disability preventing regular work at any job; recent contributions required | Up to $1,741.20 a month in 2026 (CPP), usually until 65 when it converts to a retirement pension | Strict definition; long processing; taxable; group LTD usually offsets it |
| Employer short-term disability (STD) | Unable to do your own job, per plan rules | Often a percentage of salary for 15 to 26 weeks | Not all employers offer it; taxable if employer-paid |
| Group long-term disability (LTD) | Disabled after an elimination period, often own occupation for 2 years then any occupation | Commonly 60% to 70% of gross salary up to a cap, to age 65 | Ends when you leave the job; offsets for CPP/QPP; taxable if employer-paid |
| Individual disability insurance | Disabled according to the policy definition after the waiting period you chose | Fixed monthly benefit for a chosen benefit period | Underwriting by occupation and health; benefits tax-free if you pay the premiums |
| Critical illness insurance | Diagnosis of a covered condition that meets the policy definition, then a survival period | One lump sum | Definitions are narrow; pre-existing condition exclusions; not income replacement |
| Term life insurance | Death during the term | Tax-free lump sum to beneficiaries | Renewal premiums rise sharply; ends at the end of the term or a set age |
| Permanent life insurance (whole life, universal life) | Death at any age while premiums are kept up | Tax-free lump sum; cash value may build | Much higher premium for the same face amount; surrender charges in early years |
| Group life insurance | Death while employed and covered | Often 1 or 2 times salary | Employer-paid premiums are a taxable benefit; coverage ends or must be converted when you leave |
Amounts for EI and CPP are 2026 figures from canada.ca; check the current year before relying on them. In Quebec, the QPP disability pension from Retraite Québec replaces CPP disability for people who worked mainly in Quebec, with its own amounts and a different test for people aged 60 to 64. Group plan terms vary by employer: always read your own booklet. Sources: Service Canada and EI, Retraite Québec, Canada Revenue Agency, OmbudService for Life and Health Insurance.