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Disability-insurance gap

What this is

Could you pay your bills if you couldn't work tomorrow?

Most Canadians have some group LTD (long-term disability) through work, but it usually maxes out at 60-67% of salary + caps + offsets. This calc shows the gap between what you need (~70% of income) and what your policies provide.

  • ·Recommended monthly disability income ≈ 70% of current, replaces what you bring home after tax.
  • ·Group LTD is usually taxable, so $5k/mo group ≠ $5k/mo personal.
  • ·Lifetime gap exposure = monthly gap × months until age 65. Often $1M+ of unfunded risk.
  • ·Critical illness (CI) is a one-time lump sum, not income replacement, different instrument.

Recommended /mo

$5,250

Existing /mo

$3,000

Coverage

57%

Lifetime gap

$729,000

Educational. Not financial advice. Group LTD definitions vary (own occupation vs any occupation, elimination periods, COLA). Read your group booklet before assuming the coverage shown.

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Disclaimer

Educational, not financial advice. Output is generated by an AI assistant using simplified assumptions. Tax rates, contribution limits, and benefit amounts change annually; confirm with a CFP, CPA, or the relevant Canadian regulator (CRA, FSRA, OSC, IIROC) before acting.