For you and your household
Individual disability insurance
Replaces part of your personal income during an eligible disability, helping with housing, household costs, childcare, personal debts and other family expenses.
Disability Insurance for Self-Employed Professionals · Ottawa
When you work for yourself, protect your ability to earn.
Disability insurance can provide monthly income when a qualifying illness or injury prevents you from working, subject to the policy’s definition and claim requirements.
Separate the two needs
Your household and your business have different bills.
Savings and corporate reserves may help during an absence. Drawing on them can also weaken the business, without providing dependable personal income.
For ongoing operating costs
Business overhead expense insurance
May reimburse eligible rent, utilities, employee salaries, professional fees, equipment leases, office costs and certain debts while an insured owner is disabled.
Generally intended to keep the business functioning during a temporary disability. It does not replace the owner’s personal income or fund business profit.
Does the business depend on another essential person?
Key-person disability insurance addresses the financial effect of losing an essential owner or employee. The business generally owns the policy and receives the benefit.
Explore key-person insurancePolicy decisions and income evidence
Match the cover to how you earn.
Benefits depend on meeting the policy’s definition of disability and completing its waiting period.
Monthly benefit
The insurer sets the maximum based on eligible income, occupation, existing coverage and underwriting. Coverage generally replaces part of your income.
Definition of disability
The contract may assess your regular occupation, another suitable occupation or any gainful occupation. Definitions and conditions vary, especially for specialized work.
Waiting period
You must remain disabled for the required period before benefits become payable. A longer wait may reduce premiums, but you need accessible funds to cover it.
Benefit period
The benefit period determines how long payments may continue while you remain eligible. Options vary by insurer and may include a limited number of years or coverage to a specified age.
Optional features to discuss
- Residual or partial disability benefits
- Future coverage purchase options
- Cost-of-living adjustments
- Return-to-work or rehabilitation support
- Waiver of premiums during an eligible disability
- Retirement-protection benefits
Features, definitions and availability vary. The issued contract determines when benefits are payable.
Self-employed disability FAQ
Details for your work and corporate structure.
Can I qualify if I pay myself through dividends?
Possibly. Insurers assess salary, dividends, business ownership, corporate financial statements and other evidence differently. The insurer will determine which income is eligible when calculating the available benefit.
Who should pay the premiums, and how are benefits taxed?
Tax treatment depends on policy ownership and who pays the premiums. Benefits from an individually owned policy paid entirely with personal funds are generally received tax-free. A corporation may pay premiums, but this can change the tax treatment and may create a taxable benefit for a shareholder or employee. Review ownership and payment arrangements with your accountant before deciding.
What is an “own occupation” definition?
An own-occupation provision may provide benefits when you cannot perform the duties of your specific occupation, even if you can work in another capacity. The exact definition, duration and conditions vary by policy.
Will the policy cover a partial disability?
Some policies may pay residual or partial benefits when an eligible disability reduces your ability to work and causes a loss of income. The policy’s definitions and calculation method determine eligibility.
Does disability insurance cover mental-health conditions?
A policy may cover eligible disabilities arising from mental-health conditions, subject to its definitions, exclusions, limitations and underwriting decision. Review the actual contract rather than relying on a general assumption.
Plan around your practice
Review your income and overhead together.
We’ll review your earnings, expenses, reserves and existing insurance, identify the gap, and compare suitable options through the insurers we represent.
If you proceed, we support the application and underwriting. Review your cover when income, occupation, corporate structure, staffing, overhead or debts change.
Disability Insurance for Self-Employed Professionals Areas We Serve
Guidance for self-employed and incorporated professionals in Ottawa and neighbouring Eastern Ontario communities.
This page provides general educational information and does not constitute insurance, legal, accounting, tax or financial advice.
Disability benefits are payable only when the policy’s definitions and claim requirements are satisfied. Coverage is subject to eligibility, financial and medical underwriting, exclusions, limitations and approval by the issuing insurer.
Benefit amounts, waiting periods, benefit periods, occupation definitions and optional features vary by policy. The issued insurance contract governs the coverage.
The tax treatment of premiums and benefits depends on policy ownership, who pays the premiums, corporate arrangements and individual circumstances. Consult a qualified accountant or tax professional before implementing a corporate-paid disability insurance arrangement.