What happens to my income if I can’t work because I’m sick?

EI sickness benefits pay 55% of your average insurable earnings, up to $729 a week in 2026, for up to 26 weeks, if you have enough insurable hours. After that, you rely on group or private disability insurance, or CPP disability benefits if your disability is severe and prolonged.

Do I need life insurance?

If someone depends on your income, or you have a mortgage or other debts they’d have to pay, usually yes. If no one relies on your income, you may not need any.

Is mortgage life insurance from my bank worth it?

It only pays off the mortgage, the payout shrinks as you pay the mortgage down, and the cost often doesn’t. A term life policy you own usually costs less for the same cover, pays your family directly and stays with you if you switch lenders.

Does my provincial health plan cover me when I travel?

Only partly, if at all. Outside Canada, provincial plans pay a small share of emergency costs, so buy travel medical insurance or check whether your workplace plan or credit card already includes it.

Do I need tenant insurance?

It isn’t required by law, but many landlords make it a condition of the lease. It covers your belongings and your liability if, say, a leak from your unit damages the one below, and it’s usually cheap.

Insurance basics in Canada: what you need and what to skip

Your income

Your ability to earn is worth more than anything else you own. If you’re too sick or injured to work:

EI sickness benefits pay 55% of your average weekly insurable earnings, up to $729 a week in 2026, for up to 26 weeks, if you’ve worked enough insurable hours.
Group disability insurance through your employer often tops this up, and long-term disability can pay until 65. Check your benefits booklet for how much it pays, after how long, and for how many years.
CPP disability benefits are for a severe and prolonged disability that stops you working at any job.

What EI sickness benefits pay A week before tax, 2026: 55% of your pay, for up to 26 weeks

Earning $60,000 a year EI replaces 55%: Your pay: $1,154 EI: $635
Earning $100,000 a year EI replaces 38%: Your pay: $1,923 EI: $729

Disability insurance can cover the gap, and for longer

EI counts earnings up to $68,900 a year, so it pays at most $729 a week. It’s taxable, and you need enough insurable hours to qualify.

If you’re self-employed, or your job has no disability cover, look at an individual disability insurance policy. It costs more than group cover, but it stays with you.

Health

Your provincial health plan, such as OHIP in Ontario, MSP in British Columbia or the RAMQ in Quebec, covers medically necessary doctor and hospital care. It covers little or nothing for dental care, most prescription drugs for working-age adults, eye care, physiotherapy and therapy, which is what workplace benefits and private health plans are for. In Quebec, you must have drug coverage, through a group plan if one is open to you or the public plan.

The Canadian Dental Care Plan helps people without dental insurance on lower family incomes. Outside Canada, your provincial plan pays a small share of emergency costs at most, so buy travel medical insurance before you go, or check whether your workplace plan or credit card includes it.

Life insurance

Term life insurance pays out if you die during the term, such as 10 or 20 years, and is usually cheap if you’re young and healthy. A common starting point is enough to clear your debts and cover your family’s living costs for several years.

Workplace group life insurance often ends when you leave the job, and may not be enough on its own.
Mortgage life insurance from your lender only pays off the mortgage, and the payout shrinks as the balance falls. A term policy you own is often cheaper, pays your family directly and moves with you if you switch lenders.
Whole and universal life cost much more. They’re rarely needed unless you have a specific estate or tax plan.

Don’t confuse mortgage life insurance with CMHC mortgage default insurance, which protects the lender if you stop paying and doesn’t cover you at all.

Home, contents and car

Car insurance is required in every province. In British Columbia, Saskatchewan and Manitoba the basic cover comes from a public insurer, and in Quebec injuries are covered by the public plan; elsewhere you buy it from private insurers.
Home insurance is required by your mortgage lender. Check it covers water damage and sewer backup, which are often extras.
Tenant insurance covers your belongings and your liability if you rent, and is usually cheap. Many landlords require it.
Condo insurance covers your unit’s contents and improvements; the building’s own policy covers the rest.

What you can usually skip

Extended warranties and gadget insurance: an emergency fund does the same job, and you keep the money if nothing breaks.
Creditor insurance on credit cards and lines of credit: it’s often expensive for what it pays, and you can cancel it.
Cover you already have: check what your job, bank account, credit card and existing policies include before buying more.
Low deductibles: a higher deductible lowers your premium, if you could pay it.

Paying less

Shop around at renewal, or ask a broker to, rather than letting a policy roll over.
Tell the truth on applications: a claim can be refused if you didn’t mention something.
Review your coverage when life changes: a new job, partner, baby or home.

If a claim goes wrong, complain to the insurer first. If that doesn’t settle it, the free, independent OmbudService for Life and Health Insurance (OLHI) or General Insurance OmbudService (GIO) can review it. Put your premiums in your budget.