Most government programs define “disability” as an injury or illness that makes someone unable to work – either at all or as much as they used to.
According to a government study released in 2018, nearly 6.2 million people in Canada have at least one disability. That’s 22% of Canadians.
And if you think of all those people who are unable to fully work because of something outside of their control, it must be hard to keep it together financially…
In fact, nearly 1.6 million of people with disabilities in Canada couldn’t afford the high costs of required aids, devices, or medicine in 2017.
So we compiled a list of money-saving benefits and tips for people with disabilities all in one place, in plain English, so everyone can better understand what they’re entitled to.
- What’s considered a disability in Canada?
- Make sure you get a doctor’s note
- Apply for your benefits as soon as possible
- The Disability Tax Credit (DTC)
- Registered Disability Savings Plan (RDSP)
- Canada Disability Savings Grant & Bond
- Canadian Pension Plan (CPP) disability benefits
- CPP benefits for your children
- Employment Insurance (EI) Sickness Benefits
- Extra benefits for disabled veterans
- Check out benefits from your province or territory
- Don’t forget your employer benefits
- Did you have disability insurance?
1. First, know what’s considered a disability and how to apply
The government of Canada offers many disability benefit programs, both at the federal and provincial levels. Unfortunately, you’re not automatically accepted into these programs so you’ll need to apply to each one individually.
They all have their own criteria, but the common theme is your disability has to be:
- severe enough that you can’t work as much as you could without it, and
- last long enough for it to be considered prolonged.
The programs largely help cover your lost wages and/or extra expenses.
Applications can be made through the government of Canada website and will be linked in each section of the article.
Related: Life Insurance Canada – A Guide To Get You On The Right Track
2. Get a doctor’s note before you apply
But before you start applying to everything, make sure you have your doctor’s support. Otherwise, it’ll likely be a waste of time.
If your doctor doesn’t believe your disability is severe enough, they may just need more convincing of the symptoms you’re experiencing. If you’ve already told them everything and they still won’t budge, consider trying to get a second opinion from another doctor.
Medical support is important for both sick leave and receiving government aid.
3. Apply for your benefits as soon as you can
You’ll want to submit your applications soon as you’re unable to work to your full potential, since the process could take some time, maybe even a couple months.
Getting your doctor’s approval and submitting it ASAP is crucial to making sure you get the benefits you need to support yourself as time goes on. Even if you have an emergency fund in place, it can’t last forever…
4. Apply for the Disability Tax Credit (DTC)
The Disability Tax Credit (DTC) will help you save money on your income taxes every year. In order to qualify, you’ll need to get a doctor to certify that you have a “severe and prolonged” impairment.
If you’re approved, this will open the door to many other disability benefits, like the RDSP.
For 2018, the maximum amount was $8,235 or $4,804 for people under 18. Keep in mind these numbers will change every year.
For everything you need to know about the DTC, including the forms you need to fill out to apply, visit this page.
Related: The Ultimate Guide To Saving Money On Your Taxes
5. Open a registered disability savings plan (RDSP)
If you’re the parent or caretaker of someone who’s disabled, the government offers a savings plan to help you save up money for their future finances.
There’s no annual contribution limit, but there is a lifetime limit of $200,000. Contributions aren’t tax deductible and when they’re withdrawn, they don’t count as income to the beneficiary.
The beneficiary (the person with disabilities you’re saving for) has to be:
- eligible for the disability tax credit,
- be a Canadian citizen,
- have a valid SIN, and
- be under 60 years old.
All big 5 banks offer the RDSP (plus access to the grant and bond), plus several credit unions and smaller banks.
Who can open the account for the beneficiary is a bit more complicated and hard to summarize. It can be either the legal parent of the beneficiary, the guardian, or even a public agency that’s legally authorized.
If the beneficiary is over the age of majority (usually 18 years old), there are several potential scenarios to be able to open an account. You’re also able to open an account for yourself.
Check out the details on eligibility to open an account here.
And if you want to find out anything more about the RDSP, here’s the link.
6. …And get the Canada Disability Savings Grant
But the best part about the RDSP is the grant you can apply for on top of it.
Depending on your income and how much you contribute, the government will match up to 300% of it, for an annual maximum of $3,500 per year and $70,000 lifetime.
Yup, that’s free money just for taking the initiative and saving for the future of someone in need.
Find out more info here.
Related: RESPs In Canada: Your Guide To Contributions, Withdrawals, And Government Grants
Or the Canada Disability Savings Bond (if you’re low income)
If you qualify as a low-income household (currently defined as making under $30,000 per year total), you can apply for the Canada Disability Savings Bond.
Like the grant, this means the government will make contributions to your RDSP. But in this case, you don’t need to make any contributions in order to get the money.
The maximums are $1,000 per year with a lifetime maximum of $20,000. The extra information is on the same page as the grant, just a bit lower down.
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$25 GeniusCash + Delicious meal choices with fresh ingredients + Front-door delivery.7. Apply for your Canada Pension Plan (CPP) disability benefits
The Canada Pension Plan (CPP) is designed to help support and supplement your retirement.
But if you’ve made enough valid contributions to CPP, which is usually taken out of your paycheque, you could receive monthly disability benefits from it during your working years. If you live in Quebec, they offer a similar program with the QPP (Quebec Pension Plan).
In both cases, it could take several months for your payments to start coming in, so make sure you apply as soon as you can.
The eligibility requirements they list for CPP benefits are:
- you’ve contributed to CPP for a “certain number of years,”
- you’re under 65 years old (after 65, you’ll start getting normal CPP payments),
- you have a “severe and prolonged mental or physical disability,” and
- your disability makes it so you can’t work regularly.
Wonder how much of a CPP contribution is enough? You’ll have to be contributing for 4 of the last 6 years. But if you’ve been contributing for the last 25 years, it goes down to 3 of the last 6 years.
Just keep in mind receiving CPP payments during your working years may affect how much you get when you’re retired.
Get more info right here.
8. CPP benefits for your children
If you qualify for the CPP disability benefits, your kids may be able to receive monthly CPP benefits for children as well.
You can get monthly payments for up to 2 children under 18 (or under 25 if they’re in school full time). They’ll receive a flat rate that’s adjusted yearly – the 2019 amount was $250.27 every month, a little over $3,000 a year.
Here’s some more info if you’re interested.
9. Take advantage of your Employment Insurance (EI) Sickness Benefits
Another government benefit you can apply for is Employment Insurance, or EI for short.
This can give you up to 15 weeks of benefits if your weekly salary has been reduced by more than 40%. In order to qualify, you’ll need to have worked at least 600 hours in the “qualifying period” (which is the shorter of 52 weeks or since your last EI benefit claim).
In the case of EI, disability is defined as being “unable to work because of sickness, injury or quarantine but would otherwise be available for work if not for their incapacity due to medical reasons” (see eligibility details here).
In other words, this specific benefit is more of a temporary solution. People with life-long disabilities may not qualify.
Check out this page for more information.
10. Extra benefits for disabled veterans
If you’re on disability from your service in the Canadian Armed Forces or the Merchant Navy, you may be eligible for additional benefits.
The amount you could get depends on the severity of your condition and how much it’s related to your service.
If this applies to you, you can find more information here.
11. Check out benefits from your province or territory
But the federal government isn’t the only place you could receive benefits from – your province or territory could have additional or enhanced options for you too.
Some examples include:
Check out Canada’s Benefit Finder to help see if there’s anything you qualify for.
12. Don’t forget to look at your employer’s disability benefits
Checking up with your employer could net you some more disability benefits, likely through health care, insurance, and/or pension plans.
Here are a few examples of employer-sponsored plans to ask about:
- health care benefits for your medical costs,
- disability benefits to cover some of your salary, and
- pension disability benefits, which could let you retire early.
13. Did you have disability insurance?
If you were paying for disability insurance, either through your employer or privately, this is the moment it's been waiting for. In general, this insurance could help cover part of your lost income if you can’t work because of an injury or illness, whether it’s a temporary or permanent condition.
If you have short-term disability coverage, it typically lasts up to 6 months. Long-term disability usually kicks in after short-term ends, your EI benefits end, or your employer sick leave ends.
If your insurance claim is accepted, you’ll likely get benefits for a specific amount of time. Check your policy for details.
Here’s some more information on disability insurance from the Financial Consumer Agency of Canada.
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