Case Study: Individual Disability Insurance in Alberta (Calgary Electrician)

patrick83738
Oct 8, 2025
4 min read

If you couldn’t work for a few months, how would you pay the bills?

This short case study shows how a Calgary electrician used individual disability insurance to protect his income—and what choices made the biggest difference.

Calgary electrician reviewing individual disability insurance options on a tablet — Mark, a self-employed electrician in Calgary, explores income protection options.

Client Snapshot

Name: Mark (38), self-employed electrician in Calgary
Income: ~$95,000/year (avg of last 2 years)
Family: Partner + 2 kids
Savings: ~3 months of expenses
Current coverage: No group benefits

The Risk in Plain Numbers

Mark’s after-tax income covers about $5,600/month of living costs. Fixed expenses (mortgage, groceries, utilities, truck payment, kids’ activities) are ~$3,900/month. Without income, his emergency fund lasts roughly 3 months. An illness or injury—on or off the job—could quickly create debt.

What Disability Insurance Does (Quickly)

Disability insurance replaces part of your income if you can’t work because of illness or injury. Many plans are designed to cover a portion (often about 60%–85%) of regular earnings, up to a limit, for a set time. See the Government of Canada’s overview and buying checklist here: [Disability insurance — Financial Consumer Agency of Canada].

Want a plain-language consumer booklet? [CLHIA: A Guide to Disability Insurance] explains how disability insurance works and the options you’ll see when comparing plans. clhia.ca

Options Mark Considered

Do nothing: rely on savings and hope for the best
Workers’ compensation only: helps with work-related injuries but not illness or off-the-job injuries
Individual disability insurance: pays a monthly benefit if illness or injury stops him from working

The Plan Design We Chose (and Why)

Monthly benefit: $5,000/month (60–65% of gross income—typical insurable range)
Definition: Own-occupation for his electrical trade (if he can’t perform his regular job duties, benefits pay—even if he could do another job)
Elimination period: 90 days (keeps cost reasonable; matches his 3 months of savings)
Benefit period: to age 65 (protects his long-term earning years)
Renewability: non-cancellable & guaranteed renewable (insurer can’t change rates/terms as long as premiums are paid)
Key riders:
- Partial/Residual disability (pays if he’s back part-time with a loss of income)
- Future increase option (raise coverage later without new medicals)
- Cost-of-living adjustment (COLA) (optional; helps benefits keep pace with inflation)

Good to know: Many long-term plans start with an “own-occupation” test, then after ~24 months switch to an “any occupation” test (wording varies by plan—always read your policy). See the Government of Canada’s explanation of short-term vs. long-term DI and how definitions can change over time. [Government of Canada: Disability insurance].

Tax Point Most People Miss

If you pay the full premium for a personally owned policy, benefits are generally tax-free.
If an employer pays any part of the premium, benefits are taxable. See the Government of Canada’s plain-language guidance under “Disability insurance benefits and taxes.” [Government of Canada: Disability insurance — taxes].

How Other Programs Fit (So You’re Not Double-Counting)

Public programs can help—but they’re different from private DI and often reduce (offset) what a private plan pays.

CPP Disability provides a monthly payment if you meet strict eligibility rules and have contributed to CPP. Learn more here: [CPP Disability Benefit]. Canada.ca
Many long-term plans offset payments from other sources, so your total replacement stays near typical limits. See the note on offsetting under “Other sources of disability benefits.” [Government of Canada: Disability insurance].

Underwriting: What Mark Had to Provide

Two years of income proof (NOAs/financials)
Health questionnaire + possible paramedical
Basic job-duty details (time on tools vs. admin, heights, driving, etc.)

Result

Mark locked in $5,000/month of income protection with a 90-day wait and benefits to age 65. He added a future increase option so coverage can grow as his business grows. If illness or injury strikes, the family can cover essentials without draining savings or taking on high-interest debt.

How SAFE CREST INSURANCE INC. Helps (Calgary & Southern Alberta)

We compare top carriers and explain the trade-offs (benefit period, waiting period, riders).
We fit the plan to your cash flow and risk tolerance.
We keep it plain language and handle the paperwork.

Ready to protect your income? Book a quick call with SAFE CREST INSURANCE INC. (Calgary & Southern Alberta).

FAQ (Copy into your page + add FAQ schema)

Q1: How much coverage can I get? Most people qualify for about 60%–70% of gross income, up to the insurer’s caps (your occupation, health, and proof of income matter). [Government of Canada overview].

Q2: Are benefits taxable? If you pay the full premium for a personally owned policy, benefits are generally tax-free; if an employer pays all or part, benefits are taxable. [Government of Canada — DI taxes].

Q3: What waiting period should I choose? Match the waiting period to your savings. Longer waits (e.g., 90 days) usually mean lower premiums.

Q4: What’s “own-occupation” vs. “any occupation”? Some plans start with own-occupation and later switch to any occupation. Always check your policy wording. [Government of Canada overview].