Disability Insurance Gap Calculator Canada 2026

Frequently asked questions

How much of my income would EI sickness benefits actually replace?

EI sickness benefits replace 55% of your average insurable weekly earnings, up to a maximum of $668 per week ($2,894 per month) in 2026. If you earn $80,000 per year, your gross weekly earnings are about $1,538, so EI would pay $668/week (the cap), replacing only about 43% of your gross income, and the effective replacement rate is even lower for higher earners. EI sickness benefits also last a maximum of 26 weeks and have a one-week unpaid waiting period.

Does my employer group disability plan cover my full income?

Almost certainly not. Most group LTD plans replace 60-67% of your "base salary," which typically excludes bonuses, overtime, commissions, and other variable compensation. Many plans also have a maximum monthly benefit cap (commonly $5,000 to $10,000) which further limits coverage for higher earners. Additionally, if your employer pays the premiums, your disability benefits are taxable income, reducing the effective replacement rate to roughly 40-50% of your pre-disability take-home pay.

What is the difference between short-term and long-term disability insurance?

Short-term disability (STD) covers the initial weeks of a disability, typically 17-26 weeks, and often replaces a higher percentage of income (66-75%). Long-term disability (LTD) begins after the STD period or the LTD elimination period (usually 90-120 days) and can continue for years (often to age 65) typically replacing 60-67% of base salary. EI sickness benefits can serve as a form of short-term coverage for employees without employer STD plans, but the benefit amount is usually lower than group STD.

Can I collect CPP disability benefits and employer group disability at the same time?

You can receive both, but most employer group LTD plans include an "offset" or "all-source maximum" provision that reduces your LTD benefit by the amount you receive from CPP disability. This means CPP disability typically does not increase your total income. It simply shifts the payment source. However, CPP disability benefits for dependent children (up to $281.72/month per child in 2025) may not be offset by all plans, providing a small additional benefit for families.

How does this calculator work?

Enter your gross employment income, your existing employer group disability coverage details (benefit percentage, maximum monthly benefit, and elimination period), and your monthly after-tax expenses. The calculator compares your actual income needs against the combined benefits from EI sickness and employer group disability coverage, showing your projected benefit income, required expenses, and the resulting monthly shortfall, the amount of individual disability insurance you should consider purchasing. CPP disability benefits are not modeled due to their strict "severe and prolonged" eligibility criteria; if you qualify, your actual gap may be smaller.