What happens if my disability is only partial? Can I still get benefits?

Yes, sometimes. It depends on your policy. If you can still work but only in a limited way—fewer hours, less physical effort—some plans offer partial disability benefits. It won't replace all your income. But it helps keep things afloat while you adjust to a new normal.

Can I get Personal Health Insurance if I already have a medical condition?

It's not always easy. But it's possible. Some insurance companies may offer coverage with exclusions, meaning they won't cover that condition. Others might charge more. We've helped clients with diabetes, asthma, and even a cancer history find something that still makes sense.

Is there a waiting period before disability benefits begin?

Always. But how long depends on what you choose. Some people pick 30 days. Some wait 90. The longer you wait, the lower the premium. But if you don't have savings, those extra months with no income can crush you. That's a conversation worth having—before you need it.

Will my Personal Health Insurance cover out-of-country emergencies?

Not automatically. Some plans include emergency travel medical, but not all. And even then, watch the fine print. It might only cover short trips or have limits that barely cover a night in a U.S. hospital. If you travel often, let's add proper travel medical insurance to your setup.

What's the difference between critical illness and long-term Disability Insurance?

One gives you a lump sum. The other pays you monthly. Critical illness insurance is triggered by a diagnosis. Disability Insurance kicks in when you can't work. You can have both. And sometimes, you should.

If I leave my job, can I keep my health or Disability Coverage?

Usually not. Group Insurance is tied to your employer. Once you quit or get laid off, it's gone. Some plans offer a conversion option, but it's expensive. That's why owning your own coverage is safer. It travels with you. No matter the job.

Does Personal Health Insurance cover things like fertility treatment or gender-affirming care?

Some plans do. Most don't—unless you look for it. We've helped couples find coverage options for IVF. We've also helped trans clients access plans that support hormone therapy. It's not standard. But it's out there. You just need someone who knows where to look.

Can I claim my premiums as tax deductions in Canada?

Sometimes. If you're self-employed, there may be tax credits available for your premiums. For others, it depends on how much you've spent on medical expenses in total. You need receipts. You need records. You need a tax-savvy guide—especially if you're trying to reduce taxable income smartly.

Are there disability plans that support mental health leave specifically?

Yes. But not all do. Some policies exclude mental health altogether. Others require extra documentation. We've helped clients fight through these claims—depression, burnout, anxiety. If your plan ignores your brain, it's not protecting your body either.

What's the biggest mistake people make when buying coverage?

Waiting. That's it. Waiting until after the diagnosis. After the accident. After the debt. By then, it's too late. The plan you want might not even be available anymore. We've heard the regret. Don't wait to become another story we tell.

Advisor Centre

Personal Health Insurance Vs. Disability Insurance In Canada: Do You Need Both?

By Pushpinder Puri

CEO & Founder

11 min readJuly 23rd, 2025

SUMMARY

Many Canadians misunderstand the difference between Personal Health Insurance in Canada and Disability Insurance Policies. The content explains how each offers unique coverage—one for medical expenses like prescription drugs and dental care, the other for income protection during illness or injury. It highlights Disability Insurance Costs, the average cost of Personal Health Insurance, and why having both is essential for full financial protection.

Introduction

You don’t see it coming, but it hits hard.

That moment when life shifts.

Your body doesn’t work like it used to. Your paycheck?

Gone.

You’re scared to check your bank balance because you know the numbers don’t lie.

And the system you thought would catch you—didn’t.

We’ve seen this story too many times at Canadian LIC.

A contractor slips off the scaffolding—no income for months.

Disability Insurance: When Your Income Is at Risk

If your hands can’t move

Or your mind can’t focus

Or your back keeps you from standing for longer than 15 minutes—

Who’s still paying your mortgage?

Disability Insurance Policies in Canada are not nice-to-haves.

They are your backup income when illness or injury kicks you out of the game.

Some people call it a safety net.

But let’s be honest—when your entire family depends on you,

It’s the bridge between keeping your life intact and watching it all fall apart.

It covers your living expenses, your groceries, and your rent.

It doesn’t touch your medical expenses—that’s not what it’s for.

But it keeps your income coming, month after month,

During your benefit period, even if you’re out long term.

And most people don’t even know what their benefit amount is supposed to be.

They think the CPP or Quebec Pension Plan will help.

It won’t. Not in full. Not fast.

Not enough.

Disability Insurance Policy Pros and Cons

Personal Health Insurance: What the Government Doesn't Pay For

Let’s be real.

Personal Health Insurance in Canada fills in the blanks

That your province leaves behind.

Do you need glasses?

That’s on you.

Does your kid need braces?

Also you.

You’re taking four prescriptions a month after a critical illness?

Good luck paying that without help.

And those paramedical services everyone forgets—chiropractors, massage, counselling, physiotherapy—

They add up faster than you think.

That’s why we sit across the table from clients every day who say:

“Wait… I thought OHIP covered this?”

Nope.

That’s why we recommend Personal Health Insurance plans—real ones,

Not the cookie-cutter kind

Where you don’t even know if it includes vision care,

Or what your dental care limit is,

Or if it helps with specialized treatments you may need next year.

Because health changes.

Health status can go from “fine” to “emergency” overnight.

Two Different Protections. One Life That Needs Both.

If you’re wondering whether to get one or the other

You’re asking the wrong question.

It’s not this vs that.

It’s this and that.

Disability Insurance protects your income.

Personal Health Insurance protects you from expenses.

There is no overlap.

But there is a massive gap if you only pick one.

We had a client, Mark, 39, an entrepreneur, who built his business from the ground up.

He thought his private Health Insurance was enough.

Then came the crash.

Literally.

He couldn’t walk for six months.

No Group Insurance, no Disability Coverage, no income.

And when the bills came, his personal health plan didn’t help with rent.

Because it couldn’t.

It wasn’t designed to.

Disability Insurance or Health Insurance: Which Covers What?

Online calculators? Good for ballpark numbers, but if you have asthma or your grandma had diabetes, suddenly you’re stuck. Sit with us—well, not literally, unless you like burnt coffee—and we’ll hash out the details. Sometimes you need more coverage, sometimes less. There’s no right answer. We get nervous, too, whenever we fill out paperwork for ourselves. Nobody likes forms.

Critical Illness Insurance: The One People Forget

Sometimes the illness is sharp.

A diagnosis.

A moment you remember like a freeze-frame.

Critical Illness Insurance is the third rail of protection that people ignore until it’s too late.

You get a cheque—tax-free—after diagnosis.

Not slowly. Not monthly.

You can use it to fly across the country for specialized treatments.

You can use it for prescription drugs that aren’t covered.

You can use it for whatever lets you breathe easier.

And when you’re gasping

Sometimes, breathing room is the only thing that matters.

We’ve had clients use it to replace a spouse’s lost income

So they could stay home and be a caregiver.

You can’t put a price on that.

Let's Talk Coverage: How Much Is Enough?

The truth is—most people are undercovered.

They take whatever their employer gives

(Group Coverage, by the way, usually evaporates when you leave that job),

And they hope it’s enough.

But “enough” means different things

To a single mom of three

And to a retired couple with grandkids and a cottage mortgage.

How much coverage you need depends on:

Your financial obligations
Your age
Your health condition
Your ability to work
Whether you already have retirement savings
And honestly, your tolerance for risk.

We don’t just throw around numbers at Canadian LIC.

We ask questions.

We sit with you, your chaos, your confusion.

Then we design the right coverage.

What Drives the Cost?

Everyone wants to know about Disability Insurance Costs

And the average cost of Personal Health Insurance.

But there’s no one-size-fits-all.

It depends on:

Age
Income
Job risk level
Waiting period (Do you want it to kick in after 30 days, 90?)
And yes, your health risks

You’ll pay premiums monthly

But if something happens, that benefit is tax-free in most cases.

You’re not just paying for paper.

You’re paying to sleep at night.

What Happens If You Skip Both?

You start gambling.

Not at the casino.

With your life.

If you get sick, you’re covering your own medical bills,

With savings you meant for your kids’ college.

If you can’t work, your fridge gets empty

And your mortgage company stops caring about grace.

A self-employed wedding planner we worked with had no coverage.

She had chronic pain from an undiagnosed spinal issue.

She lost 8 months of work.

We met her during month 6.

She was selling furniture to pay for doctor visits.

It doesn’t need to get there.

Personal Health Insurance Vs. Disability Insurance In Canada: Do You Need Both?

SUMMARY

Introduction

Disability Insurance: When Your Income Is at Risk

Personal Health Insurance: What the Government Doesn't Pay For

Two Different Protections. One Life That Needs Both.

Disability Insurance or Health Insurance: Which Covers What?

Critical Illness Insurance: The One People Forget

Let's Talk Coverage: How Much Is Enough?

What Drives the Cost?

What Happens If You Skip Both?

Dental and Vision: Yes, They Matter

The Mental Health Gap

Your Employer's Plan Isn't Enough

So, Do You Really Need Both?

Canadian LIC Can Help You Make the Right Choice

More to Know

FAQs

Key Takeaways

Sources and Further Reading

Feedback Questionnaire:

Personal Details

Questions