Once you've decided that you need DI, the next step is to understand the ins and outs of disability insurance and to create a more specific list of questions to identify the terms and conditions of a policy that will fit your individual needs. One of the keys to securing a relevant policy is to consider the finer details. Two considerations, the policy type and the policy definition are particularly important.

quickfact Great West Life, Canada Life, UNUM and Maritime-Aetna are the leading Canadian insurance companies that offer DI.

According to the Canadian Life and Health Insurance Association, there are three types of disability insurance offered by Canadian insurance companies in both individual and group plans: a conditional renewable policy, a guaranteed renewable policy, and a non-cancelable policy. When evaluating a policy, it's important to understand the nuances of each before making a final decision.

With a conditional renewable policy is suited to someone in a fixed profession, such as a lawyer, accountant or office position. The main drawback to this option is that if the holder changes jobs, the policy could be discontinued or the premiums could change.

The guaranteed renewable policy, the coverage can never be cancelled. However, premiums can go up if the policy holder changes jobs or positions.

Experts in the field recommend getting a non-cancelable policy. This policy cannot be changed or cancelled without your approval, and this policy can not have its premiums rise (except for non-payment of premiums).

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Definitions of "Disability"