DISABILITY INCOME
Your income is the asset. Insure that.
Life insurance protects your family if you die. Disability income protects them if you simply cannot work — which is considerably more likely, lasts longer, and is the risk almost nobody has covered.
WHAT IT IS
Replacing a paycheque that stops
Disability income insurance pays you a monthly benefit, usually a percentage of your normal earnings, when illness or injury stops you working. Short-term policies cover a span of weeks to months. Long-term policies can run for years, or to retirement age.
The single most important feature is how the policy defines disability. An own-occupation definition pays if you cannot do your own job. An any-occupation definition pays only if you cannot do any job you are reasonably suited to. For a tradesman who loses the use of a hand, or a surgeon who develops a tremor, that distinction is the entire policy.
Two other numbers matter almost as much: the elimination period, which is how long you wait before benefits begin, and the benefit period, which is how long they last. Those three choices move the premium far more than the carrier name does.
Who it is for
Anyone whose household depends on their earnings — above all the self-employed and the physical trades.
What it pays
A monthly benefit, typically a percentage of normal earnings rather than all of it.
The three levers
Definition of disability, elimination period, benefit period.
Not always insurance
Discount plans are not cover. We will say which one you are being shown.
Is this you?
- You are self-employed, and nothing arrives if you do not work.
- You work with your hands, and your hands are the business.
- Three months without income would mean real trouble.
- You have cover through an employer and have never read what it actually pays.
- You have life insurance in place but nothing for the far likelier event.
If any of these sound familiar, a 10-minute conversation will cost you nothing and probably answer more than you expect.
WHAT WE HELP WITH
What a DVH review covers
01
Short-term cover
Benefits beginning quickly after an illness or injury and running for a defined number of weeks or months.
02
Long-term cover
Benefits that continue for years, or through to retirement age, for something that does not resolve.
03
Own-occupation definitions
Whether the policy pays because you cannot do your job, or only because you cannot do any job — explained before price is discussed.
04
Elimination periods
How long you wait before benefits start, and how that choice moves the premium against your actual savings.
05
Self-employed cover
How benefits are calculated when your income varies, and what documentation a carrier will want.
06
What you already have
Employer short-term or long-term cover, counted and read properly before anything new is suggested.
Common questions
Does Social Security not cover this?
SSDI exists, but its definition is strict, the wait is long and initial denials are common. Most people who rely on it find out too late how narrow it is.
What percentage of my income would I get?
Typically a defined portion of normal earnings rather than the whole. Carriers cap it on purpose so there is always an incentive to return to work.
How soon do benefits start?
After the elimination period you choose — commonly thirty, sixty or ninety days. A longer wait means a lower premium, so it should be matched to your savings.
Is the benefit taxable?
Generally, if you paid the premium with after-tax money the benefit is not taxable; if an employer paid it, it usually is. Confirm your own position with your tax adviser.
I am self-employed. Can I still get cover?
Yes, and you are the person who needs it most. Carriers will want to see income documentation, typically a couple of years of returns.
I have cover at work. Is that enough?
Bring the policy. We will read the definition, the cap and the tax treatment with you, and tell you honestly whether a supplement is warranted.
Let's start with ten minutes
No cost, no pressure, and nothing sold on the first call. We listen first.
No cost · No pressure · Phone or video, wherever you are