If you live in Mississauga or Toronto and are wondering whether to get short-term, long-term, or both types of disability insurance, you’re not alone. Disability insurance is one of the most misunderstood—yet vital—insurance products, protecting your income if illness or injury strikes. As dedicated insurance brokers serving both Mississauga and Toronto, we guide clients every day through these seemingly complex choices. Here’s what you must know before you buy.
Understanding the Basics
Short-term disability insurance (STD) is designed for temporary situations—think broken bones, surgeries, or severe illnesses keeping you from your job for weeks or a few months. In the GTA, most short-term policies pay a portion (often 50–85%) of your salary for up to six months, with benefits kicking in after a short waiting (elimination) period, usually just a few days or weeks. Many Toronto and Mississauga employers include STD as a benefit, but eligibility, coverage, and waiting times can vary based on your contract or individual plan.
Long-term disability insurance (LTD) covers you when serious illness or injury means you can’t return to work for long periods—sometimes years, sometimes until retirement. Usually, LTD coverage starts after your short-term benefits end or after a longer waiting period (often 90–180 days). Benefit amounts are usually lower than STD (commonly covering 30–70% of income), but LTD's coverage can last until age 65 or even longer depending on the policy. In Mississauga and Toronto, LTD is often chosen by professionals, entrepreneurs, and anyone without robust workplace group benefits.
Why Both Types Matter—A Broker’s Perspective
From local broker experience, both types matter. A short-term policy protects you from missing a month’s paycheck (which can cause financial strain with high GTA living costs), while long-term disability prevents your savings from being wiped out by catastrophic health events. One often replaces the other: When STD stops paying, LTD begins, so the transition is seamless if you’re properly insured.
Mississauga and Toronto’s cost of living, combined with the city’s fast-paced workforce, makes uninterrupted income protection a crucial decision point. Group plans through employers may only offer basic STD or LTD, but brokers help customize protection to plug gaps—ensuring you avoid common claim denials due to not having enough or the right type of coverage.
Frequently Asked Questions
Q: What’s more important: Short-term or long-term disability insurance?
A: Both—short-term bridges the gap when you can’t work for weeks or months, while long-term coverage is vital for serious, ongoing disability.
Q: How much does coverage cost in Toronto and Mississauga?
A: It depends on your job, health, and the type/length of coverage you choose, but premiums are higher in large urban areas due to claims rates and living costs. Local brokers can often secure discounts unavailable online by bundling with other policies.
Q: Will disability insurance cover pre-existing conditions?
A: Some private plans limit or exclude pre-existing impairments, especially within the first 12 months, but group plans may offer more leniency. Always check policy wording, especially in Ontario.
Q: Can self-employed or gig workers get coverage?
A: Yes! There are flexible, private disability insurance options for self-employed, consultants, or gig workers in the GTA.
Q: Where can I get a personalized review?
A: Work with a local broker—Toronto and Mississauga have many brokerages (like Katherine Le Insurance) that offer tailored protection and annual reviews for your evolving needs.