Simply put, Disability Insurance replaces a portion of your income while you are unable to work due to an injury or an illness.  Most of us insure things like our homes, cars, businesses or cottages.  But what do you consider to be your greatest asset?  If you think about it, your greatest asset is your ability to earn an income.  

Whether you are self-employed or working for a company, you need to consider insuring your income. Even if your employee benefits plan includes short and long term disability, there may be the need to look at topping up or enhancing your coverage to ensure adequate protection. 

Wage Loss Replacement Plans

As a business owner, individual disability insurance premiums may qualify as a tax-deductible business expense. With two or more eligible applicants, a Wage Loss Replacement Plan can be established. Premiums payable under a Wage Loss Replacement Plan are tax-deductible when set up properly using current Canada Revenue Agency guidelines.

Other Forms of Disability Insurance

In addition to income replacement benefits, disability insurance can also be structured to facilitate a partnership buy-sell arrangement or to protect the business from the loss of a key person.