Having group disability insurance is good. But is it enough?
Many Quebec workers believe they’re protected in case of disability simply because they have group insurance provided by their employer. It’s a good start… but in many cases, that coverage is partial, temporary, or inadequate to maintain your standard of living in the event of a serious illness or accident.
The real question isn’t “Do I have disability insurance?” but rather:
“Would this coverage be enough to live normally if I became disabled for months or even years?”
1. Group coverage is often limited
Most group plans cover between 60% and 70% of gross salary in the event of long-term disability. But:
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This coverage is often taxable if the employer pays the premiums (which is common).
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After taxes, this may represent only 45% to 55% of the usual net income.
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Some plans impose a monthly maximum (e.g., $3,000/month), which can disadvantage higher-income employees.
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Coverage often ends at age 65, sometimes even earlier depending on the contract.
Example:
Julie earns $85,000 per year. Her group insurance covers 66% of her gross income, taxable.
In case of disability, she would receive about $3,700 per month — roughly 45% of her usual net income.
Can she maintain her lifestyle? Pay her mortgage? Her debts? Help her children with their studies?
2. Some disabilities are excluded or poorly defined
Group contracts often include restrictive clauses:
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Definition of disability limited to “inability to perform your own occupation” for 2 years, then “any reasonable occupation” afterward.
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Possible exclusions: mental health disorders, chronic pain, addictions, etc.
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No short-term disability coverage in some cases: benefits may only start after 90 or 120 days.
👉 An individual policy allows for a more favorable definition of disability, faster benefit activation, and more stable protection.
Individual disability insurance:
- adjusts to your real situation and net income;
- is not tied to your job — you keep it even if you change employers, become self-employed, or start your own business;
- offers a guaranteed contract with stable terms, often until age 65;
- allows you to index benefits and add useful riders (refund of premium, return to work, etc.).
Example :
Marc is an engineer. He has basic group insurance but chooses a complementary individual policy with non-taxable net benefits, a better definition of disability, and protection until age 65.
He knows he’s truly protected — no matter his employer or future health condition.
According to the Canadian Life and Health Insurance Association (CLHIA):
- 1 in 3 workers will experience a disability lasting more than 90 days before age 65.
- Disability is more common than premature death — yet far less insured.
- The main causes: mental health issues, musculoskeletal disorders, cancers, strokes, etc.
In other words, you’re far more likely to become disabled than to die prematurely… and it could last for several years.
Without income, all your plans collapse:
Disability insurance is the protection of your ability to keep living, saving, and building.
It’s your true number one asset: your future income.
Having group insurance is better than nothing.
But it’s not a complete plan. Too many people think they’re covered, only to be blindsided when faced with a diagnosis or accident.
A well-structured individual policy ensures the continuity of your income, your financial independence, and your peace of mind — where group coverage stops.
In financial planning, what matters isn’t the path itself, but your real ability to get through hardship without sacrificing everything.
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AMF Québec, *Disability Insurance*, 2023
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CLHIA, *Report on Life Insurance and Young Adults*, 2022
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IQPF, *Risk Planning: Disability Insurance*, 2023
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Sun Life, *Group Insurance vs Individual Insurance*, 2022
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Statistics Canada, *Prevalence of Disability Among Canadians Aged 15 and Over*, 2022
