Why You Need Disability Insurance Even If You're Young and Healthy

When you're young and in good health, it’s easy to assume that disability insurance isn’t something you need to worry about. After all, serious illnesses or injuries seem like problems for later in life, right?

Wrong.

Unexpected medical conditions, accidents, or mental health challenges can strike at any age. If you're earning an income — or planning to — disability insurance can be one of the smartest financial decisions you make early on.

Here’s why disability insurance is important even for young, healthy individuals, and how it protects your financial future when life doesn’t go according to plan.

What Is Disability Insurance?

Disability insurance is a type of coverage that replaces a portion of your income if you’re unable to work due to a medical condition, injury, or illness. Depending on the policy, it can cover both short-term and long-term disabilities.

There are two main types:

• Short-Term Disability Insurance – Typically covers 3 to 6 months of missed work.
• Long-Term Disability Insurance – Can last for several years or even until retirement.

Why Young, Healthy People Still Need Coverage

1. Accidents Don’t Discriminate by Age

Car crashes, sports injuries, or work-related accidents can happen at any time. According to the Canadian Life and Health Insurance Association, one in three Canadians will experience a period of disability lasting longer than 90 days before age 65.

Even if you're careful, an injury could temporarily (or permanently) prevent you from earning a living.

2. Your Income Is Your Most Valuable Asset

As a young professional, your career is just beginning. Over the next few decades, you could earn millions of dollars — but only if you can keep working. Disability insurance protects that income stream so that your long-term goals (like buying a home, paying off debt, or saving for retirement) stay on track.

3. Chronic Illness Can Strike Early

Medical conditions like multiple sclerosis, diabetes, or severe mental health issues often appear during a person’s 20s or 30s. Many of these conditions may not be immediately disabling but can worsen over time.

Having disability insurance in place before a diagnosis ensures you’re covered if things take a turn later.

4. Mental Health Claims Are on the Rise

In Canada, mental health-related conditions are one of the leading causes of long-term disability claims — especially among younger adults. If depression, anxiety, or burnout impacts your ability to work, a disability policy ensures you can take the time you need to recover without sacrificing your financial stability.

5. It’s Cheaper While You’re Young

Premiums are typically much lower when you're younger and healthier. The earlier you buy, the more you save — and you lock in lower rates that can continue for decades. Waiting until after a health issue arises can limit your options or make coverage unaffordable.

What Does Disability Insurance Typically Cover?

Depending on the policy, disability insurance can replace 60% to 85% of your regular income if you can’t work due to:

• Physical injuries (e.g., back problems, fractures)
• Chronic illnesses (e.g., cancer, autoimmune diseases)
• Mental health conditions (e.g., depression, anxiety)
• Post-surgery recovery or complications
• Pregnancy complications (in short-term plans)

Who Should Consider It?

You should consider disability insurance if:

• You’re a salaried employee or self-employed
• You have recurring monthly bills (rent, car loan, student loans)
• You don’t have a large emergency fund
• You rely on your income to support yourself or others
• Your employer's group benefits don’t include enough disability coverage

How to Choose the Right Policy

When shopping for disability insurance, keep an eye on:

• Benefit period – How long payments will last (e.g., 2 years, 5 years, until age 65)
• Waiting period – How long before benefits begin (commonly 30 to 90 days)
• Definition of disability – Some policies only pay if you can’t work any job, while better policies pay if you can’t work your own occupation
• Non-cancellable policies – Lock in rates and coverage terms for the long term

A licensed insurance advisor can help you compare quotes and find the right level of protection.

Final Thoughts

Disability insurance in North York isn’t just for older adults or those with known health risks. If you rely on your income — and want to protect your future — it’s a must-have. The truth is, being young and healthy is the best time to get insured, not a reason to wait.