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Robert, The Insurance Beast mascot

Disability Gap

Stack EI, group STD/LTD, CPP Disability, and personal DI against your essential expenses — month by month.

Free · No signup · Verified July 2026

Robert, The Insurance Beast mascot
Robert — winking
Robert says: peak gap is about $983/mo around month 7. Expand “Show the math” to see each layer.
Peak monthly gap

$983

Worst month: month 7

Year-1 average gap

$562

Months 1–12

Steady coverage

81%

Of expenses in own-occupation phase

LTD after CPP offset

$3,790

Gross LTD $5,025

Robert noticed…

  • Your group LTD looks employer-paid (or shared) — benefits are generally taxable. Many people budget with gross figures and overestimate take-home by 20–30%.
  • Most group LTD plans reduce benefits dollar-for-dollar by CPP Disability. We model that offset so you don't double-count.
  • Own-occupation definition switches around month 24. After that, many plans require you to be unable to work in any occupation — a common claim denial point.
  • EI and group STD often coordinate (top-up or offset). We show the higher of the two in each month so income isn't double-counted — check your plan booklet.

Monthly benefit stack

Stacked take-home layers vs essential expenses · cliff at month 25

Elimination / short-term bridge

Months 1–4

$3,675/mo in

Gap $825/mo

Own-occupation LTD

Months 5–24

$3,739/mo in

Gap $761/mo

After any-occupation switch

Months 25–36

$3,517/mo in

Gap $983/mo

Educational estimates only — not insurance, tax, or legal advice. No products sold. Figures use verified government constants where cited and your inputs/assumptions elsewhere. Confirm against your policy wording and a licensed advisor or broker. Robert is a mascot, not a licensed insurance advisor.

Frequently asked questions

Is this insurance advice?
No. This tool produces educational estimates only. It does not recommend products, insurers, or whether you should buy coverage. Confirm every figure against your plan booklet and a licensed advisor.
Are group LTD benefits taxable?
Usually yes when the employer pays the premiums — the benefit is taxable income. When you pay premiums with after-tax dollars, benefits are generally non-taxable. That distinction is the #1 planning error this tool highlights. Shared premium arrangements can be mixed; we treat them as fully taxable (conservative) unless you adjust.
What is own-occupation vs any-occupation?
Own-occupation means you qualify if you cannot perform the material duties of your own job. Many group LTD plans switch after 24 months to any-occupation — you must be unable to work in any job reasonably suited by education and experience. That switch is a common claim denial point; we annotate it on the timeline.
Why does CPP Disability reduce my LTD?
Most group LTD contracts offset CPP Disability dollar-for-dollar so total income does not exceed the plan’s replacement percentage. We model that offset so you do not double-count. Your actual CPP-D amount depends on your contribution history — use average, maximum, or a custom estimate.
How is EI sickness calculated here?
We use the current-year Employment Insurance sickness rules from our verified figures: 55% of insurable earnings up to the published weekly maximum, for up to 26 weeks. When both EI and group STD could apply, we show the higher of the two so early months are not double-counted — real plan coordination varies.
Does this store my data?
Your inputs stay in your browser only — nothing is sent to our servers. Clear your site data or switch devices and the scenario is gone unless you export a report.

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