Gabriel Lalonde
August 22, 2020

Covid-19 Reality Check
Protect Your Salary

Here’s a scary question for you: if you had to stop working today due to an illness or accident, how would you pay your bills?

This is not an idle question. Twenty-five percent of today’s 20-year-olds will spend at least one year out of work due to accident or illness before they retire. And 5% of workers take short-term disability each year due to illness, injury, or pregnancy.

Whether someone suffers from an accident or an illness, the combination of big medical bills and lost income could be financially devastating. The same source reports that 25% of bankruptcy filings are due to medical bills (another 15% are due to illness or injury).

I hate to be the bearer of bad news — but you can’t only rely on worker’s compensation or CPP.


Worker’s compensation only covers lost income if the accident or illness is work-related. This accounts for a small fraction of disability and illness cases.

What about CPP?

From 2006 to 2015, The government approved one-third of all disability claims that were filed. Only 23% of claims were approved on initial submission. Most claimants faced a lengthy appeal process to receive benefits. Average processing time for an appeal was 18 months. And in the end, only 33% of appeals are approved.

Let’s say you go through this process and finally get approved. The average benefit is about $14,000 per year. Getting some financial relief is better than nothing, of course. But could your family survive on less than $1,200 (before tax) per month? These days, that won’t get you very far.


The maximum benefit is 55% of your gross income to a maximum of $514/week for 15 weeks. Enough said.

Ready for the good news? There is a solution that could help replace the income lost due to illness or injury. It could also help protect your family from financial devastation.

I’m sure you understand the importance of having car, home, and life insurance. But are you one of the 18 million workers in the Canada who doesn’t have disability insurance?

You might think it costs too much. Or, maybe you haven’t given it any thought at all.

Here’s an important statistic to keep in mind. An average long-term disability absence lasts almost three years. Would you be able to pay your bills for that long if you had no income?

Disability insurance could be an important component of helping your family’s financial security. Our team at MDL Financial can help you review your options for coverage. Give us a call today!

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