RBC: Fewer Canadians have disability coverage via workplace benefits

A recent survey conducted by RBC Insurance found that the number of Canadians with disability coverage through workplace benefits has dropped considerably.

Specifically, the number has fallen significantly since 2015 – fewer than half (48%) of employed Canadians said they have disability coverage through their workplace benefits, compared to 57% in 2015.

RBC Insurance also discovered that among those employees without disability coverage through their employers, 84% have not purchased insurance themselves.

“With the majority of employed Canadians indicating that they do not have disability insurance through their workplace benefits package, workers need to review what coverage they do have and take immediate steps to ensure that they are well protected in case something were to happen,” said RBC Insurance senior director of life and health Maria Winslow.

Winslow warned that Canadians without disability insurance are endangering not just themselves, but their loved ones as well.

Other findings of the report include:

• 68% of working Canadians are aware of the “serious financial implications” facing them and their family if they were to be disabled and rendered unable to work for three months.
• 45% said that they would have liked to take time off due to disability but could not due to finances.
• 51% answered that they were forced to go back to work earlier than they would have preferred due to their financial situation.
• Those without coverage revealed that certain barriers prevent them from securing protection:
  • 35% said their workplace does not provide group benefits/disability insurance.
  • 25% said they work part-time or on contract, thus are not eligible for benefits.
  • 22% said they are self-employed or work as freelancers.
  • 26% said they cannot afford disability coverage.

“There’s a misconception that disability insurance is expensive, yet it’s much less than you might think - generally costing between one and three per cent of your income,” Winslow commented.