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The Five Big Questions You Need to Ask About Your Workplace Disability Insurance Coverage

You need your pay cheque to pay your bills, do your extra-curricular activities, eat and so much more, so what happens if you suddenly become sick or injured and can’t work? If you’re a full-time employee, your benefits plan may provide some financial protection, in the form of disability insurance. You could even call disability insurance “Income replacement insurance” because it replaces some of your income if you get sick or injured and cannot work.

But is the coverage you have at work sufficient to meet your needs? We’ll break down disability insurance coverage that’s provided as part of employee benefits, and guide you through how to figure out whether your workplace plan fits your needs.

Disability insurance 101: Understanding the basics

Many people have short-term or long-term disability insurance coverage, or both, through group insurance provided by an employer.

This is an important benefit, as the occurrence of disabilities in Canada might be greater than you think. In 2017, 22 percent of the Canadian population aged 15 years and over – or about 6.2 million people – had one or more disabilities.

*these numbers are based on disability insurance claims received by RBC Life Insurance Company® between 2014 and 2017.

Your benefit (or disability benefit), which is a term you’ll see used quite frequently below, is the payments you receive from your disability insurance policy. Short-term disability insurance policies usually provide benefits immediately and last between three and six months. Long-term policies, on the other hand, usually only provide benefits after a waiting period of one or more months, and then last for a specified period, like two years – or until you reach a specific age, such as 65. Short-term and long-term policies are designed to coordinate so you won’t be left with gaps in coverage.

Both forms of disability insurance provide some income replacement when you can’t work due to a disability, whether that’s from a physical injury, an illness, or a mental health condition. You can think of disability insurance as a form of insurance for your pay cheque, to keep income coming in even if you become disabled and can’t work.

1. How does my disability insurance policy protect my monthly income?

The details of how your insurance coverage protects your income will be set out directly in the policy. Reviewing the policy will tell you:

  • how much you will receive if you become disabled (usually between 60 to 85 percent of your monthly after-tax income)
  • the definition of “disability” used to qualify you for benefits
  • how long you will receive benefits for if you become disabled
  • what is the waiting period you need to complete (if any) to receive benefits
  • any limitations or exclusions preventing you from receiving benefits – like any pre-existing medical conditions, for example

A policy through work might offer an option to add extra coverage. This is considered a “top up” to your coverage. You might decide to add extra insurance if you find out that the standard monthly amount offered through your employee benefit plan is not enough to cover your monthly expenses.

Take some time to look through your budget so that you know what amount of income you need to have coming in every month to continue to cover your expenses.

2. How much monthly income could I receive from my disability insurance?

Your monthly income from a disability insurance policy will depend on your regular income amount, and how much of that income is replaced by your disability benefit.

Let’s say Sarah, age 34 and living in Ontario, earns $54,000 per year before tax – gross income. That’s $4,500 per month. The income protection policy offered by her employer replaces 60 percent of her salary, before tax, to a maximum of $5,000 per month if she becomes disabled.

If Sarah develops a disabling illness so that she can’t work and is eligible for a monthly disability benefit, she will receive 60 percent of $4,500 – or $2,700 – in monthly income. And because Sarah’s disability benefit of $2700 is less than the monthly maximum of $5,000, she will receive the full benefit for as long as she is eligible.

Sarah’s salary before taxes: $54,000
  100% of pay cheque before need of disability benefit 60% of pay cheque with disability benefit
Monthly income before tax: $4,500 $2,700*

*The $2700 benefit may or may not get taxed. That is dependent on whether Sarah pays the cost for her group disability coverage or if her employer pays. This will be discussed further below.

Do you know what percentage of your gross salary your employer disability insurance policy will cover? Do you know what the maximum per month benefit amount is? These are important questions to find out from your HR department or group plan administrator.

3. Who pays for my work disability insurance?

Often, employers will set up their employee benefits plan so the employee pays the full monthly cost for disability insurance. That’s usually because, if you pay, and not your employer, your disability benefits will be tax-free. This means your income while on disability would be closer to your take-home pay.

In contrast, if your employer pays for the cost of your disability insurance, you’d need to pay tax on your monthly disability benefit.

Do you pay for your disability insurance through work or does your employer? Will you be taxed on your employer disability benefit? This is an important question to ask your HR department or group plan administrator so you have the accurate monthly benefit amount for your budget calculations.

4. Will my disability insurance cheque be enough to meet my needs?

An important part of this puzzle to understand is how much of your after-tax income to you rely on to cover all your monthly expenses?

Note that if Sarah’s annual income was higher, her regular monthly income might already be above the maximum dollar amount her benefit will pay. This can put her at a disadvantage.

For example, if Sarah earned $120,000 gross per year, or around $10,000 per month before taxes, her disability coverage would only pay a maximum of $5,000 of monthly income – or 50 percent, not 60 percent, of her salary.

If this was Sarah’s situation, she might decide to purchase additional disability insurance, either through her employer or on her own.

5. Should I supplement the disability insurance policy I have through work?

Whether or not you have income protection as an employee benefit, you can also buy personal individual disability insurance from a broker or directly with an insurance company.

This way, you can get customized coverage for your needs, and you can choose the level and type of benefit you want. For example, after a specified period of receiving full benefits, most employer-provided disability insurance policies might may pay you only if you are unable to work in any capacity. In comparison, an individual policy might continue to pay for as long as you are unable to work at your own job.

Keep in mind, as well, that your employer-provided disability coverage is linked to your work, so if you stop working for that employer, your protection will end.

It’s important to take the time to ask your employer or HR department about the coverage you have. Once you have clarity about the kind of coverage you have in place, and you’ve calculated how much of your income you’ll need to have coming in to pay your monthly expenses, you’ll be in a position to make an informed choice about whether your existing coverage is enough.

Learn more about personal disability insurance.

 

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*Home and auto insurance products are distributed by RBC Insurance Agency Ltd. and underwritten by Aviva General Insurance Company. In Quebec, RBC Insurance Agency Ltd. Is registered as a damage insurance agency. As a result of government-run auto insurance plans, auto insurance is not available through RBC Insurance in Manitoba, Saskatchewan and British Columbia.

This article is intended as general information only and is not to be relied upon as constituting legal, financial or other professional advice. A professional advisor should be consulted regarding your specific situation. Information presented is believed to be factual and up-to-date but we do not guarantee its accuracy and it should not be regarded as a complete analysis of the subjects discussed. All expressions of opinion reflect the judgment of the authors as of the date of publication and are subject to change. No endorsement of any third parties or their advice, opinions, information, products or services is expressly given or implied by Royal Bank of Canada or any of its affiliates.

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Most Canadians are fortunate to have provincial medical coverage for hospital visits, outpatient services and prescription drug costs incurred in-province or in-country. All provinces and territories except Quebec have a billing agreement that provides coverage for insured hospital and physician services, but some plans have exceptions.

Want to know how much out-of-province medical coverage your province or territory provides?

For more in-depth and up to date information regarding out of province coverage visit your province’s approved health insurance website. Understanding the coverage you have before you travel is an important part of planning a trip.

Alberta

Plan: Alberta Health Care Insurance Plan (AHCIP)

Details: AHCIP provides coverage for insured physicians and hospital costs in other provinces across Canada. This means that in most cases when you present your AHCIP card to a medical or hospital service provider in another province, there is no cost to you. If you visit a physician in Quebec, you may have to pay up front, but can submit a receipt to AHCIP to be reimbursed. If you use a private facility you will have to pay facility fees including laboratory services, MRIs and accommodation.

There is limited coverage for physician and hospital costs outside of Canada. For expenses incurred out-of-country, AHCIP will cover a maximum of $100/day for hospital services, and a maximum of $50/day for outpatient services. Travelers are responsible for paying the health service provider first and then can submit a claim to the AHCIP office to request reimbursement for eligible out-of-country health expenses. The traveler is responsible for paying the difference between the amount charged and the amount AHCIP reimburses.

British Columbia

Plan: Medical Service Plan (MSP)

Details: British Columbia’s MSP will help pay for unexpected medical services outside of the province if they are normally insured by MSP. Reimbursement for physician services will be made in Canadian funds and any excess cost is the responsibility of the beneficiary. When travelling to Quebec or outside of Canada, you will probably be required to pay out of pocket for medical services and then get reimbursement after.

MSP does not provide any coverage for treatment provided by a non-physician health care practitioner (e.g., physician assistant, nurse practitioner, chiropractor or physical therapist), prescription drugs, medical supplies or ambulance services outside the province. The province will pay up to $75/day for emergency hospital services outside of Canada.

Manitoba

Plan: Manitoba Health, Seniors and Active Living (MHSAL)

Details: Manitobans who travel to another province are still covered by MHSAL if they present their Manitoba Health card to a hospital or other medical care centre.

Travellers admitted on an emergency basis to a hospital outside of Canada are covered by MHSAL for services, based on established daily rates but are responsible for some of the costs. Care received as a hospital outpatient or from an emergency room outside of Canada is covered up to $100/visit. Physician services are covered at the same rates paid to Manitoba doctors.

New Brunswick

Plan: Medicare

Details: New Brunswick Medicare will cover insured physician or hospital services in all provinces and territories, except for Quebec, upon presentation of a Medicare card.

The plan will cover only emergency out-of-country physician and hospital services with prior approval, at a maximum of $100/day for in-patient services and $50/day for outpatient services.

Newfoundland & Labrador

Plan: Medical Care Plan (MCP)

Details: Provides limited coverage for travellers under the Medical Care Plan (MCP) and the Hospital Insurance Plan. MCP covers only insured services and does not cover all charges related to hospitals and clinics or ambulance/air ambulance services inside or outside of Canada. Individuals who leave the province for more than 30 days will need an out-of-province coverage certificate.

Nova Scotia

Plan: Medical Services Insurance (MSI)

Details: MSI will provide coverage to Nova Scotia residents for medical expenses incurred anywhere in the country, upon presentation of a valid health card, except Quebec for physician services.

For out-of-country medical care, MSI will cover emergency medical services only, at Nova Scotia rates. The current rate for emergency in-patient services in-province is $525 a day, plus 50 percent of ancillary fees incurred during an in-patient stay. The program will not cover ambulance services, Pharmacare, children’s dental programs, routine vision analysis, or any out-patient charges, including X-ray, diagnostic tests and laboratory charges.

Ontario

Plan: Ontario Health Insurance Plan (OHIP)

Details: OHIP will cover physician and hospital services outside of the province upon presentation of a valid health card. Physicians outside of Ontario can choose to bill the province directly, in which case the patient doesn’t pay anything, or to bill the patient, who will be reimbursed upon submitting appropriate documents and invoices to OHIP.

As of October 1, 2019, OHIP no longer covers Ontario travellers facing emergency medical expenses outside of Canada.

Prince Edward Island

Plan: Health PEI

Details: Island residents are covered for medical emergencies or sudden illness anywhere in Canada, at PEI rates. Costs incurred for non-emergency care received outside of the province are not covered without prior approval from Health PEI.

When travelling outside of Canada, coverage is available for emergency or sudden illness up to a set amount. The difference between the medical fees charged and the amount that Health PEI will pay is the responsibility of the traveler.

Québec

Plan: Régie de l’assurance maladie Québec (RAMQ)

Details: Québec residents who hold a valid health insurance card can receive out-of-province health care services under the Québec Health Insurance Plan (RAMQ), but in most cases, RAMQ reimburses only part of the cost. For example, a patient seeking hospital services in Ontario totaling $928 will be reimbursed only $422. The patient is responsible for paying the difference.

For out-of-country expenses, RAMQ will cover a maximum of $100/day for hospital services and a maximum of $50/day for outpatient services. For hemodialysis and the required medication, RAMQ will cover up to $220/treatment, regardless of whether the cardholder is hospitalized.

Saskatchewan

Plan: Saskatchewan Health

Details: The province provides coverage for physician and hospital care across Canada upon presentation of a valid health card. Travelers to Quebec may have to pay for physician services then submit a bill to the Ministry of Health for reimbursement at Saskatchewan rates.

For out-of-country care, Saskatchewan Health will provide limited coverage from approved hospitals at Saskatchewan rates, and only if the same services would be covered in-province. Saskatchewan Health will cover a maximum of $100/day for hospital services and a maximum of $50/day for outpatient services.

Yukon

Plan: Yukon Health Care Insurance Plan (YHCIP)

Details: YHCIP provides basic coverage for hospital and physician services from publicly funded hospitals inside or outside of Canada, at Yukon rates. There are limitations within this coverage.

YHCIP does not provide coverage for air or ground ambulance services or any related services, such as hospital transfer, escorts or return transportation charges, regardless of where the expenses are incurred.

It’s important to note that non-physician (e.g., physician assistant, nurse practitioner) and non-hospital (e.g., chiropractic, dental care) services are not covered under most provincial plans.

For more in-depth and up to date information regarding out of province coverage visit your province’s approved health insurance website. Understanding the coverage you have before you travel is an important part of planning a trip.

When you are ready to get away, RBC Insurance will be there to help you with your travel insurance needs. Click to get a travel insurance quote.

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*Home and auto insurance products are distributed by RBC Insurance Agency Ltd. and underwritten by Aviva General Insurance Company. In Quebec, RBC Insurance Agency Ltd. Is registered as a damage insurance agency. As a result of government-run auto insurance plans, auto insurance is not available through RBC Insurance in Manitoba, Saskatchewan and British Columbia.

This article is intended as general information only and is not to be relied upon as constituting legal, financial or other professional advice. A professional advisor should be consulted regarding your specific situation. Information presented is believed to be factual and up-to-date but we do not guarantee its accuracy and it should not be regarded as a complete analysis of the subjects discussed. All expressions of opinion reflect the judgment of the authors as of the date of publication and are subject to change. No endorsement of any third parties or their advice, opinions, information, products or services is expressly given or implied by Royal Bank of Canada or any of its affiliates.

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Stories about weather-related property damage have become more common in recent years. Snowmelt and frozen rain, coupled with frozen ground, has led to widespread overland flooding, seepage, and sewer backups.

Over the past decade, the Insurance Bureau of Canada (IBC) calculates that extreme weather events caused at least $1 billion in losses. In 2020 alone, the IBC reports that January’s record-breaking high temperatures in southern Ontario and Quebec already caused more than $95 million in damages.1

When it comes to water damage coverage most home insurance policies provide some coverage to help protect your family and home from water-related damages.

Understanding Insurance Terminology

Before we examine the coverage, let’s take a minute to review some of those terms in your insurance policy that you’ve heard but may not understand what they mean.

  • Seepage: when water flows or passes slowly over time through fine pores or an opening – like your basement walls or windows.
  • Water escape: when water, that’s flowing through the pipes in your home, gets out of the pipes in a manner that it’s not supposed to – like a burst pipe.
  • Sewer system: pipes that carry waste and storm water.
  • Watermains: pipes underground that bring fresh, clean drinking water to your house.
  • Sudden and accidental:
    • Sudden: something that happens unexpectedly without warning and has not been ongoing.
    • Accidental: unintentional, not on purpose.

Common Home Insurance Water Damage Coverage

Weather-related events aren’t the only possible causes of water damage; leaks and burst pipes are also common causes of damage to homes, so it’s important to know what your policy covers.

Home insurance policies in Canada typically offer water damage coverage caused by sudden and accidental water escape from the following:

  • Eavestroughs, downspouts or ice dams
  • Watermain breaks
  • Water or steam from plumbing, heating, or air conditioning systems
  • Overflow from domestic appliances or water containers like your hot water tank or washing machine
  • Swimming pools or their attachments
  • Water coming through an opening created suddenly and accidentally by another covered cause

Additional Coverage Options

If you’re concerned about water damage and how it might result in expensive repair costs, you may want to consider purchasing additional coverage. For example, you might add sewer back up coverage, which provides coverage for damage caused by water getting into your home through a backed-up sewer system. This covers losses due to sewers overflowing and sewage backing up through the drains into your home.

Given the increase in flooding over the past decade, you may also want to consider overland water insurance, commonly known as flood insurance. This helps protect your home and contents against water damage due to lake or river overflow, heavy rainfall accumulation, and rapid snow melt that’s too much for drainage systems to handle.

Check with your home insurance provider to see if adding this insurance is an option if you live in a flood prone area.

What Water Incidents are NOT Covered by Insurance?

The key thing to note with water damage under a home insurance policy is that the incidents must be sudden and accidental. A typical home insurance policy will not cover damage due to leaks or seepage over time.

It is also important to note that coverage is for the damage caused by the water and not the initial cause itself. For example, if your pipe bursts and damages your carpet, the damage to your carpet is covered, however the cost to replace your pipes might not be. This is because the damage to the pipe would most likely be due to deterioration, faulty workmanship, or something else that is not covered by your policy.

There are some water damage losses that would not be covered under your home insurance policy unless additional coverage is purchased.

  • Backup, escape or overflow water from sump pumps, septic tanks, weeping tiles, or French drains. (ask an advisor how sewer back up can help)
  • Flood, ground water, rising water tables. (ask an advisor how overland water coverage can help)

Other water damage losses not typically covered by standard homeowners insurance, also known as exclusions, include:

  • Tides and tidal waves
  • Spray, waves, storm surges
  • Ice
  • Water-born objects like boats or debris
  • Seepage
  • Escape of water from an appliance or a container outside of your home caused by freezing
  • Damage due to freezing of plumbing, heating, sprinklers, air conditioning or domestic appliance in an unheated area of your home
  • Water damage to a home that has been vacant for 30 days or more

What You Can Do

By taking action now to protect yourself, you can reduce the odds of water damage hurting your home and your wallet. Ensure you have the insurance protection best suited to your home and region. Check out these tips to help you prevent water damage to your home.

Sources:

1.January storm caused over $95 million in insured damage. IBC. February 18, 2020

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*Home and auto insurance products are distributed by RBC Insurance Agency Ltd. and underwritten by Aviva General Insurance Company. In Quebec, RBC Insurance Agency Ltd. Is registered as a damage insurance agency. As a result of government-run auto insurance plans, auto insurance is not available through RBC Insurance in Manitoba, Saskatchewan and British Columbia.

This article is intended as general information only and is not to be relied upon as constituting legal, financial or other professional advice. A professional advisor should be consulted regarding your specific situation. Information presented is believed to be factual and up-to-date but we do not guarantee its accuracy and it should not be regarded as a complete analysis of the subjects discussed. All expressions of opinion reflect the judgment of the authors as of the date of publication and are subject to change. No endorsement of any third parties or their advice, opinions, information, products or services is expressly given or implied by Royal Bank of Canada or any of its affiliates.

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Standard insurance, like homeowner’s insurance, may provide enough coverage for most Canadians – but not all. In fact, the majority of affluent Canadians are actually underinsured. They’ve got insurance that isn’t designed to cover most luxury properties and other valuable assets.

What is Private Insurance?

When your business, professional and private assets grow, so do your risks. Private insurance policies are uniquely designed to address those risks by offering specialized coverage traditional policies do not. Your dedicated specialist can easily conduct a Personal Risk Assessment to help identify gaps in your insurance coverage — especially for items like vacation properties, collectibles, and even your home wine cellar.

Most Canadians don’t realize they’ve outgrown their insurance policies until the worst happens. Now’s the time to consider your unique assets and risks – and how best to protect yourself and your family.

Do You Need Private Insurance?

If any of these apply to you, you may need private insurance:

  • The replacement cost of your home is greater than $1 million
  • You have collections of art, jewelry, wine, or more
  • You collect cars or luxury vehicles
  • You have boats, motorcycles, or snowmobiles
  • You volunteer on a not-for-profit board
  • You have a need for increased personal liability coverage
  • You employ a housekeeper, nanny, dog walker, or personal trainer
  • You own a cottage or other secondary residences
  • You own property outside of Canada
  • You are a global traveler

Protect Yourself from Liability

Even common scenarios can put you at risk. If you throw large parties or host friends at your vacation property or on your boat, you’re taking on the risk someone could get hurt. Private insurance helps ensure you have the right protection to match your wealth, assets, and unique exposures that come with your lifestyle.

Protect Your Collectibles

Most traditional policies include a limited amount of coverage for collectibles and special limitations for items like art, wine, and jewelry. Private insurance makes it possible to insure individual items for their unique worth and reimbursement options. You can even temporarily insure newly acquired jewelry and other items before you have their value assessed.

Protect Your Property

Luxury home additions, like smart-home and security systems or climate-controlled wine cellars, are not covered under typical home insurance policies. Private insurance solutions cover these. They also offer funds to upgrade damaged equipment (like a water heater, furnace, or AC system) to newer, more energy-efficient models, following a covered claim.

Protect Your Mental Health

In the unfortunate case of a break-in or theft, private insurance can cover counselling and related expenses. That means you can put the mental health of yourself and your family first.

Protect Your Reputation

Affluent families are more susceptible to lawsuits. Private insurance can help pay for independent legal advice and public image consultation to help protect your name and reputation.

Explore Your Private Insurance Options Today

The best insurance policies address your precise needs and provide the exceptional customer service you deserve.

Work with an RBC Private Insurance advisor for end-to-end white-glove service. The person who conducts your risk assessment will be the same one you’ll contact if you need to make a claim. They’ll get to know your unique situation and offer customized care you won’t find elsewhere.

Ready for enhanced protection? Please call our VIP service line at 1 800 769-2517 or request a private consultation here.

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We make it easy to find expert advice, money-saving tips, and a range of insurance options for every moment of life.

This article is intended as general information only and is not to be relied upon as constituting legal, financial or other professional advice. A professional advisor should be consulted regarding your specific situation. Information presented is believed to be factual and up-to-date but we do not guarantee its accuracy and it should not be regarded as a complete analysis of the subjects discussed. All expressions of opinion reflect the judgment of the authors as of the date of publication and are subject to change. No endorsement of any third parties or their advice, opinions, information, products or services is expressly given or implied by Royal Bank of Canada or any of its affiliates.

Liability, home, auto, leisure and lifestyle insurance products (except for collector car insurance) are distributed by RBC Insurance Agency Ltd. and underwritten by Aviva General Insurance Company. In Quebec, RBC Insurance Agency Ltd. is registered as a damage insurance agency. As a result of government-run auto insurance plans, RBC Insurance does not offer auto insurance in Manitoba, Saskatchewan, and British Columbia. Actual coverage may vary by province. Certain conditions, limitations and exclusions may apply. For full terms and conditions, speak with your RBC Risk Assessment Insurance Specialist and refer to the insurance policy wording.

Collector vehicle insurance is available through Hagerty Canada, LLC and underwritten by Elite Insurance Company, a subsidiary of Aviva Canada Inc. Some coverages are not available in all provinces. Hagerty is a registered trademark of the Hagerty Group, LLC.

TM Trademark(s) of Royal Bank of Canada. Used under license.

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TORONTO, July 5, 2022 – In the midst of a tight labour market, Canadians are placing increasing importance on employer-provided benefits plans. According to a recent RBC Insurance survey, nearly three-quarters of young Canadians aged 18-34 (73 per cent) and 35-44 (69 per cent), are significantly more likely to leave their current employer for another that is offering what they would consider to be better benefits.

In determining what makes one benefits plan better than another, the top three desired features as reported by survey respondents were support for mental health (88 per cent), a health spending account (80 per cent) and options to add additional coverage (79 per cent) to better meet personal or financial objectives. These results are aligned with how workers are feeling, with 61 per cent reporting their overall well-being as good or excellent, down three points since 2021, and only 58 per cent reporting their mental health as good or excellent, down five points since 2021.

“Given our collective experience since March of 2020, it’s not surprising to see a range of worries and stressors reported by working Canadians” says Julie Gaudry, Head of Group Benefits, RBC Insurance. “The knock-on impacts of a tightening labour market have made flexible and tailored employer-provided benefits desired by many – and clearly a draw, particularly for younger generations.”

Market trends also signal the need for better employer benefits

Some other labour market trends are highlighting the need for competitive employer-provided benefits. According to RBC Economics, there are roughly 70 per cent more job postings and 6 per cent fewer available workers compared to pre-pandemic levels in Canada, creating a ‘buyer’s market’ for those seeking a job change. Further, The Bank of Canada’s Survey of Consumer Expectations revealed the likelihood of a worker voluntarily leaving a job is increasing, as younger Canadians reported lower levels of overall well-being, mental and physical health year-over-year since 2019.

“With heightened competition for talent, it’s critical that organizations develop or refine benefits plans as a key component of their offer,” says Gaudry. “We need to pay particular attention to this younger cohort, which already makes up a significant proportion of the workforce, and continues to grow. Employers must ensure the right support is available to this younger generation.”

Benefits plans make a difference

Canadians with employer-provided benefits are significantly more likely to rate their job satisfaction (64 per cent, six points higher), overall level of well-being (64 per cent, 10 points higher), physical health (62 per cent, eight points higher), mental health (60 per cent, seven points higher), and financial health (55 per cent, 17 points higher) higher than those without benefits.

Top three takeaways for employers

  1. Prioritize employee mental health and well-being. RBC Insurance Group Benefit Solutions offers a Workplace Wellness Toolkit which provides plan administrators with a framework for assessing the well-being needs of their employees and creating a wellness strategy that is tailored to the unique goals of their organization at no additional cost.
  2. Increase awareness of existing benefits plan features. Remind employees about the coverage they may already have available and how to access it. This is also a great opportunity to gather feedback about employee satisfaction of their benefits plan.
  3. Ensure your benefits plan meets the needs of your workforce. One way to do this is to offer flexible coverage and a health or wellness spending account which allows employees to customize their plans to meet their individual needs. This will help with retention and recruitment efforts; especially for younger Canadians.

About the RBC Insurance Study

These are some of the findings of an Ipsos poll conducted between April 22 and 25, 2022, on behalf of RBC Insurance. For this survey, a sample of 1,001 working Canadians was surveyed online. Weighting was employed to balance demographics to ensure that the composition of the sample reflects the population according to Census data and to provide results intended to approximate the sample universe. The results are considered accurate to within ±3.5 percentage points, 19 times out of 20, of what the results would have been had all Canadian working adults been surveyed.

About RBC Insurance

RBC Insurance® offers a wide range of life, health, home, auto, travel, wealth, annuities and reinsurance advice and solutions, as well as creditor and business insurance services to individual, business and group clients. RBC Insurance is the brand name for the insurance operating entities of Royal Bank of Canada, Canada’s biggest bank and one of the largest in the world, based on market capitalization. RBC Insurance is among the largest Canadian bank-owned insurance organizations, with approximately 2,600 employees who serve close to five million clients globally. For more information, please visit rbcinsurance.com.

Media contact

Cody Medwechuk, RBC Insurance Corporate Communications

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TORONTO, May 10, 2022 – Changing external factors like the pandemic, economic uncertainty and inflation have prompted Canadians aged 55-75 to shift when they plan to retire. One-third (33 per cent) of recently retired Canadians say they retired sooner than planned, while three-in-ten (30 per cent) pre-retirees intend to change their retirement date because of the pandemic, according to a new survey from RBC Insurance.

Among Canadians who have already retired, more than a quarter (28 per cent) are spending more than anticipated, while four-in-ten (41 per cent) have experienced unexpected expenses, including major home repairs (16 per cent), healthcare or transportation costs (12 per cent) and helping family out financially (12 per cent), all of which are further exacerbated by rate hikes and inflation.

“The events of the last two years are clearly affecting Canadians – including those nearing retirement,” says Selene Soo, Director, Wealth Insurance, RBC Insurance. “And with the current high inflation rate added to the mix, many are feeling concerned about their purchasing power and increasing expenses. What people must remember is they can take control – good planning is critical in driving confidence around their future finances.”

As Canadians live longer, the impact of inflation on savings, expenses and purchasing power is the most pressing concern for three-quarters (78 per cent) of those surveyed, as well as a lack of guaranteed income (47 per cent) and outliving their savings (48 per cent). Additional concerns included outliving their spouse, feelings of loneliness and not having a financial legacy to leave behind. Yet Canadians are still largely relying on traditional savings tools such as TFSAs (54 per cent), RRSPs (53 per cent) and CPP/QPP/OAS (52 per cent) to ensure they have enough money to afford their lifestyle once they stop working. Fewer are taking advantage of annuities (7 per cent) or segregated funds (3 per cent) even though these tools can help address many of the retirement concerns expressed.

“It’s important to protect the money Canadians have worked so hard to save,” adds Soo. “But for many who may be in retirement longer than originally planned, the right tools can help ensure a guaranteed income or enough to leave behind a legacy – regardless of other external factors.”

In fact, a priority for the majority (58 per cent) of those aged 55-75 – whether retired or not – is evaluating will and estate planning. To help protect and grow your money for you or your loved ones, and to help preserve spending power in retirement, consider the following:

  • Consider investing in products such as Segregated Funds, including Guaranteed Investment Funds (GIFs) that can keep all, or a significant portion, of your original investment safe while it grows, and offer unique estate planning benefits.
  • Look at different investment options such as Annuities. These provide a guaranteed, predictable income stream for as long as you live that doesn’t fluctuate with the market or interest rates.
  • Speak to a financial planner or insurance advisor to discuss options and help ensure you’re on track to meet your long-term financial goals.
About the RBC Insurance Study

These are some of the findings of an Ipsos poll conducted between March 8th and 10th, 2022, on behalf of RBC Insurance. For this survey, a sample of 1,000 Canadians aged 55-75 was interviewed online. Quotas and weighting were employed to ensure that the sample’s composition reflects that of the Canadian population according to census parameters. The precision of Ipsos online polls is measured using a credibility interval. In this case, the poll is accurate to within ± 3.5 percentage points, 19 times out of 20, had all Canadians aged 55-75 been polled. The credibility interval will be wider among subsets of the population.

About RBC Insurance

RBC Insurance® offers a wide range of life, health, home, auto, travel, wealth, annuities and reinsurance advice and solutions, as well as creditor and business insurance services to individual, business and group clients. RBC Insurance is the brand name for the insurance operating entities of Royal Bank of Canada, one of North America’s leading diversified financial services companies. RBC Insurance is among the largest Canadian bank-owned insurance organizations, with approximately 2,800 employees who serve more than five million clients globally. For more information, please visit rbcinsurance.com. Any amount that is allocated to a segregated fund is invested at the risk of the contract holder and may increase or decrease in value (subject to death benefit and maturity guarantees).

Media contact

Kiara Famularo, RBC Corporate Communications, 647-272-4077

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TORONTO, Feb 1, 2022 – As attitudes around health and wellness among employees and employers continue to shift, the number of working Canadians who view mental illnesses as a disability has hit a new high. According to a recent RBC Insurance survey, more Canadians now consider depression (54 per cent) and anxiety (44 per cent) to be disabilities, the highest figures respectively since 2019. At the same time, just over half (54 per cent) rate their mental health as excellent or good, which is a significant drop of 12 percentage points over that same period in 2019.

“Over the years, we have seen more and more Canadians recognizing that disabilities can be mental, and not just physical in nature,” says Maria Winslow, Senior Director, Life & Health, RBC Insurance. “This is an important shift, particularly as people continue to deal with the ongoing stresses of the pandemic and they continue to report a decline in their mental health.”

Significantly more respondents aged 18-34 logged mental health challenges (69% anxiety, 59% depression) compared to those 55 and older (42% and 29% respectively), which Winslow adds could highlight that pandemic-related stressors have had a particularly negative impact on younger people. These findings support actual claims trends among RBC Insurance clients; over one-third (35 per cent) of new individual long-term disability claims for younger clients (18-39) are related to mental health in 2021, which is trending upward since 2019.

Canadians with poor mental health more likely to take time off due to disability

The importance of mental health to overall wellbeing is further underscored by survey results that found Canadians reporting poor mental health (32 per cent) were more likely to take time off due to disability than those who report good mental health (12 per cent). Among working Canadians, feelings of burnout were the main source of stress (42 per cent), indicating the potential impacts of the pandemic such as fear, uncertainty, and instability around work and home life. Finances, and income protection if they get sick or have COVID-19 was the second highest stressor for nearly as many (39 per cent), followed by increased work hours/workload (33 per cent).

RBC Insurance: More Canadians now consider depression and anxiety to be disabilities. (CNW Group/RBC Insurance)

However, feelings of stress or anxiety were significantly lower among those with support in place; Canadians who had a group benefits plan (60 per cent) and bought their own disability coverage (66 per cent) were more likely to rate their mental health as excellent or good. Still, those who rated their mental health as excellent or good in 2021 has dropped (-8 points) from the previous year. At the same time, fewer people report having disability coverage either through their workplace benefits (-6 points) or an individual disability plan (-9 points) – something which can help replace lost income should someone be unable to work for an extended period.

“The number of Canadians with disability coverage has declined from the peak of the pandemic to today,” adds Winslow. “But as mental health challenges continue to rise and the future remains uncertain, it’s more important than ever for all Canadians to consider their options for financial protection.”

Tips to manage stress and mental health

Canadians should consider these three tips to help manage stress and maintain good mental health:

  • Focus on healthy habits. Whether working at home, the office or a hybrid of both, it’s important to maintain healthy habits. Take frequent mini-breaks to exercise or meditate, and foster social connection with others. Establish clear boundaries between work and personal time. Along with a balanced diet and getting enough sleep, these are critical for supporting mental health and overall well-being.
  • Adjust your lifestyle and spending. With inflation on the rise, most people need to step up how much they save and prioritize what’s important to keep financial stress at bay. Cook at home to limit takeout meals, avoid impulse purchases, and look for areas where you can reduce or eliminate fees and services that you don’t absolutely need or use.
  • Ensure you’re covered before an injury or illness occurs. Being proactive and taking control helps to lower anxiety and provide a greater sense of safety. Disability insurance can not only ensure income protection should you become unable to work, but many plans can also help you return to work through benefits such as rehabilitation, job retraining and other services.

To learn more, visit www.rbcinsurance.com/disability.

About the RBC Insurance Survey

These are some of the findings of an Ipsos poll conducted between October 14 to 18, 2021. For this survey, a sample of 1,501 employed Canadians aged 18+ was interviewed. Weighting was then employed to balance demographics to ensure that the sample’s composition reflects that of the population according to Census data and to provide results intended to approximate the sample universe. The precision of Ipsos online polls is measured using a credibility interval. In this case, the poll is accurate to within ±3.1 percentage points, 19 times out of 20. The credibility interval will be wider among subsets of the population. All sample surveys and polls may be subject to other sources of error, including, but not limited to coverage error, and measurement error.

About RBC Insurance

RBC Insurance® offers a wide range of life, health, home, auto, travel, wealth and reinsurance advice and solutions, as well as creditor and business insurance services to individual, business and group clients. RBC Insurance is the brand name for the insurance operating entities of Royal Bank of Canada, one of North America’s leading diversified financial services companies. RBC Insurance is among the largest Canadian bank-owned insurance organizations, with approximately 2,500 employees who serve more than four million clients globally. For more information, please visit www.rbcinsurance.com.

Media contact

Kiara Famularo, RBC Corporate Communications, 647-272-4077

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