Can You Get Disability Insurance If You Are Unemployed?

Canadian consumers face grave risks. Since it tends to snow a lot up north, you face a higher risk of experiencing a slip and fall. Furthermore, you have to worry about car accidents, sicknesses, and so much more. There are so many concerns that you’ll likely have difficulty falling asleep at night. Don’t worry. You’re not the only one. And, you might be able to put some of those concerns to rest by acquiring insurance. With the right insurance, you’ll be able to protect your assets and investments. Furthermore, you can shield yourself from unnecessary losses.

Can you get disability insurance despite being unemployed? This is a good question. It will be explored in greater depth below.


What Is Disability Insurance?

First, you should take the time to learn more about the ins and outs of disability insurance. What is it? How does it work? Can an unemployed Canadian get it? Disability insurance is designed to protect Canadians when they’re injured and no longer able to work. When you become disabled, you will be able to take advantage of this insurance by receiving monthly payments. Disability insurance is great for many people including the young, the old, and people nearing retirement.

If you’re unemployed, you may be able to acquire a disability insurance policy. So, you’ll want to learn as much as possible about this type of insurance.



When searching for disability insurance, you’ll find that your options are plentiful. First and foremost, you should know that some policies have an “any occupation” statement. Or, you can buy a policy that is “own occupation”. This is very important because it is going to help determine when you’re eligible to receive benefits. You have to understand what this means. With “own occupation”, you will be able to receive benefits when you can no longer work your job. You may be able to work another job. Any occupation is much different.

You’ll find that it is much more difficult to qualify for benefits with an any occupation disability policy. This means that you cannot work any job. You have to be disabled to the point that you cannot work any job whatsoever. This means that you will not be able to move from a physical job to a job sitting behind a desk. If you do that, your insurance will be voided.

With own occupation, you’ll be able to work a different job and receive partial benefits. As someone who is unemployed, you’ll likely have to choose any occupation since you do not have an occupation right now.


Unemployed And Insured

Will you be able to obtain disability insurance while being unemployed? Ultimately, it is tough to stay for certain. As long as you’re looking for a job, you may be able to get coverage. However, it is going to make it much more difficult for you to get coverage. While it might be possible, getting insurance without a job will prove to be very difficult. With this in mind, it is best to have a job before applying for disability insurance. Otherwise, you’re going to be denied coverage.


How To Get Disability Insurance

If you’ve never signed up for insurance, you’re likely going to have troubles. Don’t worry. It doesn’t have to be very difficult. You can simplify the process by teaming up with a professional. They’ll walk you through the sign-up process so you can get a policy as soon as possible. If you’re working, you’ll likely be able to get a disability policy from your current employer. In most cases, the employer will pay some or all of the premiums. This is very helpful and it gives you another reason to stick with your current job.

Alternatively, you may be able to buy the disability insurance through your workplace. If you’re unemployed, you’ll have to look for alternative options. You’ll have two. Depending on your occupation and future job, you may be able to acquire disability insurance through an association. For instance, you might be able to join a dentist or psychiatrist association and buy insurance through it. This will help you minimize the costs and get better coverage. If that doesn’t work, you’ll have to buy an individual disability insurance plan.

This means that you’ll work with an insurance broker or buy directly from an insurance company. Nevertheless, this offers many benefits. You’ll learn more about the perks of buying a disability insurance plan directly through an insurance company below.


Benefits Of Buying Directly

While you might be able to obtain disability insurance through your employer, this might not be the best option. You’ll find that getting insurance from your employer means you’re going to face a lot of limitations. You won’t be able to just the coverage. You’ll have to take what your employer gives you. You’ll want to prevent this from happening by stepping up and buying insurance on your own. By purchasing your own insurance plan, you’ll receive a wealth of benefits. For starters, you’ll have the freedom to customize your policy. This ensures that you can take advantage of features that weren’t previously available.

Furthermore, you’ll be able to shop around. With an employer-sponsored plan, you won’t get to pick the insurance company that you like. The employer will handle that and you’ll have no say in the matter. By purchasing personal insurance from home, you can shop around and find the company that works best for you. Another great thing about buying directly from an insurance company is that you’ll be able to maintain your coverage when changing jobs. In most cases, you’ll lose your employer-paid coverage as soon as you leave that job. If you’re paying for the coverage, you’ll get to keep it and take it with you. This helps ensure that you’re able to maintain the lowest costs instead of having to switch to a costlier plan.

You’ll receive more control. You’ll be able to adjust your policy’s features, coverage, and elimination period to suit your needs. This is a great way to change the price. If you feel comfortable that you’re going to be okay, you can increase the duration of the elimination period and save money. Alternatively, you can spend more and minimize the elimination period. Finally, you should know that you’ll be able to obtain tax-free benefits when you become disabled. If your employer has been paying for your insurance, the money will be taxed. And, it is not going to be fun to pay taxes on that money.

With your own plan, you’ll be able to skip that. It’ll be tax-free so you’ll be able to use all of the money to your benefit.


Average Price

At the end of the day, insurance is very expensive in Canada. Nevertheless, you’ll find that some insurance policies are worth it. With that being said, you should find out which policies are going to be most beneficial to you. You may discover that disability insurance is the best. It offers extensive peace of mind and you won’t have to pay too much. In general, the average price of disability insurance is roughly 1 to 3% of your annual income. However, it is impossible to say what you’re going to pay. The costs will depend on numerous factors including your age, gender, occupation, location, and more.

Below, you’ll learn more about the factors that will impact your insurance’s cost.

  • Your Age – As you get older, you’ll be much more likely to get sick and injured. Suffice to say, you’re going to be a bigger risk for an insurance company so you’ll pay more.
  • Your Health – If you’re healthy, you’ll pay less than someone who is not. Remember to eat healthily and exercise often to keep your costs to a minimum.
  • Your Gender – In most cases, women file more claims than men. As a result, women will pay more in premiums than men.
  • Smoker – People who smoke are going to pay much higher premiums.
  • Your Job – Some jobs are riskier than others. If you work a safer job, you’ll pay less. Working a dangerous job means that your premiums are going to be much higher.
  • Waiting Period – The waiting or elimination period can have a big impact on your costs. This is the amount of time you’ll have to wait before you begin receiving benefits. With a shorter elimination period, you’ll get benefits quicker but you’ll pay more.
  • Income Level – Most disability policies cover roughly 60% of your income. If you make more money, you’ll have to pay higher premiums to cover the extra costs.


Ultimately, there are numerous factors that are going to impact the costs of your disability insurance premiums. To find out how much you’re going to pay, it would be best to obtain quotes from several companies. Do that and you’ll know exactly what you’re going to pay.


Unemployment Benefits Recipients Are Not Eligible

Being unemployed can be tough on everyone involved. Fortunately, most countries offer unemployed workers unemployment insurance. These benefits are paid weekly but recipients only receive a percentage of their gross income. It depends on the province or territory you reside in. The federal maximum unemployment benefits are $573 per week or $54,200 per year.

To qualify for unemployment benefits, you must have been employed in “insurable employment”. Other requirements include no-fault job loss, laid off for seven days consecutively in the past 52 weeks, worked for a specific number of hours, are willing to return to work or another available job position, and continuously look for employment. 

All workers laid off from their jobs are required to keep a log of their employment attempts. These documents must be submitted to the government via landline or Internet every two weeks. If you fail to submit your employment attempt documentation to the government, you will be at risk of losing your unemployment benefits. 

Workers who resigned from their positions or quit their jobs without prior notice are not eligible for Canadian unemployment benefits. 

In addition to this, unemployment benefits recipients are not qualified for disability benefits. 


Age Requirements

Workers over the age of 65 are not qualified to receive government-sponsored disability benefits. The early retirement age in Canada is 55 while the retirement age is 65. If you are working at 65, you will probably not be eligible to receive company disability benefits. Insured workers below the age of 60 are eligible to receive disability benefits from their employer-sponsored disability plan. However, this only applies to workers who are injured on the job prior to turning 60.

It is recommended to opt for the “lifetime” benefit period. This will allow you to receive disability payments until your physician clears you to return to work. If you are never cleared to return to work, the lifetime benefit option will continue to pay out after you reach the 65-year-old retirement age. But, again, this rule only applies to workers who are injured in the workplace before they turn 60.


Injured At 65

With the inflation in full-force, many Canadians find themselves working part-time jobs way past retirement age. While this is very unfortunate for this age group, it is a fact of life in Canada. According to the Census, citizens 65 years old and older counted for 16.9 percent of the Canadian population in 2016. The percentage increased by 3.9 percent (13.0 percent) in 2001. 

Reports show that many Canadian senior citizens are taking on jobs that do not pay. These jobs include volunteer work and independent caregivers. There are also senior citizens who are working for lower wages than the younger age groups. This is very unfortunate, as many seniors are very dedicated to their jobs, but are just not able to perform jobs that require heavy lifting, strenuous bending, and continuous stretching.

The Canadian government oversees the senior citizen workforce in Canada to protect them from potential fraud. 


Is Employer-Sponsored Disability Expensive?

Not all Canadian workers have access to employer-sponsored disability benefits. These workers have the same workplace injury and fatality risks as other workers. They are even at a higher financial risk related to workplace injuries than employees who are insured under their employer-sponsored disability plans.

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