Maple Groove Financial.
Income Continuity Model · Prepared 2026

If you couldn't practise tomorrow, when does each dollar arrive?

This model follows a self-employed health professional, under 30, earning $80,000 through a disability that meets their policy's own-occupation definition (they can no longer do clinical work) but does not meet the federal CPP Disability test. It shows exactly how long each income source takes to start, where the gaps are, and what the illustrated policy options cost and give back over a career.

Part One: The First 24 Months

The waiting-period timeline

Every income source below has a clock. EI sickness has a one-week wait and a hard 26-week ceiling. The disability policy has an elimination period you choose, and a longer one is cheaper. Adjust the levers and watch how the layers hand off to one another.

EI sickness (taxable) Disability policy (tax-free) No income Locked: test not met
Monthly income vs. pre-disability baseline
Registered ≥ 12 months before onset
How the self-employed register with Service Canada
Show EI after est. 25% tax
Days with no income at all
Rainy-day fund to bridge day 0 → the first policy cheque, at your essential spend
Total EI sickness received
Total received, first 12 months

Why CPP Disability is greyed out in this scenario

CPP-D pays only when a disability is "severe and prolonged": unable to regularly pursue any substantially gainful occupation, likely long-continued or terminal. A shoulder or wrist injury that ends a hands-on clinical career but leaves you able to do other work meets your private policy's own-occupation definition and fails the CPP-D test at the same time. That gap between the two definitions is precisely what the private policy exists to cover, and why the own-occupation wording is not an optional upgrade for a hands-on clinician.

Part Two: The Quotes Are In

Seven ways to buy the same $5,475 a month

Every option below was illustrated on this file in July 2026. All seven share the core: $5,475 a month, tax-free, payable to age 65, and the own-occupation definition. They differ on five levers: the waiting period, how partial disabilities pay, how the benefit keeps pace with inflation on claim, how much future-increase room is reserved, and whether a return-of-premium (ROP) rider gives money back. Tap a card to put it under the microscope; the chart compares whole paths to 65, or flips to show all five refund options at once.

I pulled six quotes on this file in early July 2026; the seventh, Option G, came back with the carrier's written answers to the follow-up round. One thing to know before comparing: adding the refund rider upgraded the file from occupation class 3A to 4A, and the better class re-prices everything else downward. Like for like (Option F against Option A), the whole refund package costs $846.97 a year more, while each claim-free eight-year cycle returns $16,606.64: more than double the extra paid in.
Dots mark refund cheques; a bar at each cheque shows the savings pot's running total, growing at the chosen return
4.00% / year
All five refund options on one chart
Refund cheques by 65, option under the microscope

Questions a careful buyer asks

Why a 90-day wait and the EI overlap, instead of a longer elimination period?

The discount for waiting longer is small. On this file, the 90-day wait (Option A) runs $3,304.69 a year and the 120-day wait (Option B) runs $3,149.16: about $155 a year, roughly 5%, to push the wait out a month. Insurers price it that thin on purpose; many claims resolve in the first months, and a longer elimination does not defer payment on those claims, it deletes it.

What the longer wait gives up is a month of $5,475, tax-free, on every long claim. One extra unpaid month equals about 35 years of the premium saved. That trade pays off only if there is never a claim, which is the one assumption this plan refuses to make.

Ninety days is the longest wait EI sickness can bridge, and the overlap is the point. EI pays from week two to week 27; with a 90-day elimination the first policy cheque arrives near day 120 (benefits pay in arrears) while EI keeps paying to day 189. Individual non-cancellable contracts generally do not offset EI, so those weeks pay double and restock the rainy-day fund the wait just drained. Push the elimination to 180 days and the first cheque lands after EI has already ended: a gap opens, there is no overlap to rebuild savings, and the whole stretch leans on cash.

A longer elimination suits someone holding a large cash reserve who is purely minimizing premium. This file is buying certainty of income, and 90 days is the longest wait the EI bridge can carry.

Why buy this now, at the full amount, instead of starting small and adding later?

Insurability is the real asset, and it is only for sale while you are healthy. This file qualified at standard rates in July 2026. Any new diagnosis or injury between now and "later" can add exclusions, add a premium rating, or close the door entirely; once a claimable condition exists, no insurer will raise the amount at all. The policy's future-increase option guarantees another $4,050 a month of benefit later without new medical evidence, but only up to that cap; anything beyond it means full underwriting again. Deferring coverage is a bet that health holds until the paperwork catches up, and a hands-on career is exactly where that bet fails hardest.

Every dollar of benefit must be income-justified on the day it is added. Disability benefits are capped by provable income, which for the self-employed means tax returns. Insurers count salary and net business profits, not dividends or retained earnings, so a later decision to incorporate and pay dividend-heavy compensation can shrink the income the insurer will recognize even while real earnings grow. The amount bought today is locked on today's proof; an increase deferred must re-qualify on whatever the numbers show then.

Premiums are banded by age at issue, and the level options lock there for life. Each year of waiting buys the same coverage at a permanently higher rate. This is the smallest of the three effects, but it stacks on the other two: later costs more, needs fresh medical evidence beyond the guaranteed slice, and has to clear income proof again.

None of this argues for more coverage than the income justifies. It argues against deferring coverage the income already justifies.

Why is the refund option barely more expensive than the plain one?

Adding the return-of-premium rider moved this file from occupation class 3A to 4A, and the better class re-prices the base policy and every other rider downward. The rider line itself costs about $1,384 a year, but the class upgrade claws most of that back, so the whole package (Option F against Option A) runs only $846.97 a year more.

Is the 4A class safe, and what happens if the refund rider is ever dropped?

The class is confirmed in writing. The carrier's own-occupation restriction applies only to files that start at class A or 2A and reach a better class through its upgrade program; this file is a true 3A, so it keeps the own-occupation rider at 4A, and the issued policy will show class 4A with the rider attached.

The 4A class leans on the refund rider, though. Also confirmed in writing: if the return-of-premium rider is removed later, the carrier reserves the right to reassess the class back to 3A and adjust the premium, and any future-increase policy exercised after that would be issued at the class applicable at the time. Dropping ROP down the road is not a free lever; it can move the price of everything.

What does the 8% inflation cap actually cost against the 3% one?

The follow-up illustration (Option G) finally isolates it: on this file the 8% COLA rider runs $417.74 a year and the 3% version $260.61, a saving of about $157 a year. That saving more than covers the jump from $4,050 to the $9,525 maximum of future-increase room (about $140 a year), which is why Option G carries more than double the future-increase room of Option F and still costs $26 a year less.

The trade sits on the claim side: the 3% version caps each inflation adjustment at 3% and gives up the guaranteed 2% minimum annual increase the 8% version pays while on claim. On a decades-long claim, the exact scenario this policy exists for, that guarantee is worth real money.

What are the orange bars, and why do they grow when the return slider moves?

Each bar is the savings pot if every refund cheque is deposited the day it arrives: the first bar is the first cheque, and each later bar is all earlier cheques grown at the chosen after-tax return, plus the new one. The two lines stay in plain dollars; only the bars and the money-value verdict use the return.

Can the refunds really pay the whole policy back?

In plain dollars, yes, once the return clears roughly 4.5%: bank every cheque and by 65 the pot holds more than every premium dollar ever sent in. That is a nominal comparison, though; premiums leave over 37 years and could have been invested too, which is what the money-value verdict prices, and there insurance properly shows as a net cost. The honest claim is that the refunds, saved and grown, can hand back more than everything paid in, not that the coverage was free.

What does the after-tax return slider actually change?

Three things: the height of the savings-pot bars, the money-value verdict tile, and the verdict sentence under the chart. The cumulative premium lines are deliberately plain dollars, so they never move. In the all-refund-options view it re-ranks the verdict sentence only.

What is the difference between "residual + partial" and "partial only"?

They decide what happens in the grey zone where the client can still work but earns less. Residual + partial offers a choice: a flat 50% benefit for lost duties or hours, or a benefit proportional to the income actually lost (payable from a 20% loss, full benefit at 80% or more) that runs to 65 while the loss persists. Partial only pays the flat 50% for at most 24 months, then stops, with no income-based election at all. For a hands-on clinician whose realistic claim is a permanent 60% caseload, that is the difference between a proportional cheque for three decades and two years of help.

What does the COLA "floor" mean?

The guaranteed minimum raise while on claim. The 8% version adjusts the benefit to inflation on each claim anniversary, capped at 8%, and never raises it by less than 2%, even through years of flat inflation. The 3% version caps at 3% with no minimum: the cheque never shrinks, but in a low-inflation year it can sit still.

When does the inflation adjustment actually start?

On the first anniversary of the disability, and every 12 months after that while the claim continues. A claim resolved inside its first year never sees an adjustment, which is why the rider is often dismissed as rarely mattering; it earns its premium on exactly the claim this policy exists for, the long one.

When do the refund cheques arrive, and are they taxable?

At the end of every claim-free eight-policy-year cycle, with a shorter pro-rated final period paying at 65; on this schedule that is five cheques over the life of the policy. They are generally treated as a non-taxable return of premiums already paid with after-tax dollars, though the CRA has not issued a formal ruling, and growth on banked cheques is ordinary investment income unless sheltered.

Read before choosing

The fine print on refunds
  • A refund cycle pays only if it stays essentially claim-free: benefits above 20% of that cycle's premium mean no cheque at that anniversary, though the eight-year window rolls forward and can still pay once a clean eight-year stretch is behind you; smaller claims shrink the cheque dollar for dollar. The model assumes fully claim-free cycles.
  • The refund cheques are generally treated as a non-taxable return of premiums, but the CRA has not issued a formal ruling on ROP benefits, and growth on banked cheques is ordinary investment income unless sheltered (TFSA).
  • Later policy changes (dropping a rider, lengthening the wait, lowering the benefit) cut the refund retroactively to the start of the cycle in progress. Dropping the refund rider itself also lets the carrier reassess the 4A class back to 3A and reprice (confirmed in writing), and future-increase policies issued after that would be written at the then-current class.
  • On the graded option, the stepped premium is the one element the illustration does not guarantee to 65 (the carrier confirms in writing the moving part is the base-policy premium); the level options are locked at issue.
  • "Partial only" (Option C) pays 50% of the benefit for at most 24 months and offers no loss-of-income election; the residual rider includes the partial benefit and adds that election.
  • COLA 3% also gives up the guaranteed 2% minimum annual increase that the 8% version carries while on claim.
  • Premiums shown are annual-pay and include the $50 policy fee. Paying monthly costs about 8% more, and that loading is never refunded.
  • A group price break of 10% at issue, guaranteed to 65, applies if three or more colleagues apply together; the carrier assesses each group's circumstances case by case once three eligible applicants are confirmed.
How the calculations work: assumptions & scope
  • EI figures are 2026: sickness benefit of 55% of average insurable weekly earnings to a maximum of $729/week, payable up to 26 weeks after a one-week waiting period; self-employed premium of 1.63% of insurable earnings (max $1,123.07/yr, MIE $68,900).
  • Self-employed EI special benefits require voluntary registration at least 12 months before a claim. Once a benefit is collected, premiums continue for the duration of self-employment.
  • The disability policy benefit is modelled as tax-free (premiums paid personally with after-tax dollars) and payable to age 65; the first cheque typically arrives about 30 days after the elimination period ends (benefits are paid in arrears), so the timeline shows accrual, not deposit dates.
  • Individual policy and EI sickness are shown stacked; individual non-cancellable contracts generally do not offset EI, but confirm the specific contract's other-income provisions.
  • The rainy-day figure sums the gap between essential monthly spending and money actually received, from day 0 until the first policy cheque (the elimination period plus about 30 days, since benefits are paid in arrears). EI amounts use the after-tax toggle's setting.
  • The seven options in Part Two are real carrier illustrations quoted July 2026 on this file (Option G arrived with the carrier's written answers to the follow-up round): annual-pay premiums including the $50 policy fee, level or graded as shown, on a stated-income basis pending tax-return verification (the carrier computes the maximum insurable benefit from the last two years of T1 and T2 returns). The carrier is deliberately unnamed here.
  • ROP refunds follow the illustrations' printed schedules (50% of eligible annual premium per claim-free eight-year cycle, with the shorter final period paying at 65) and are treated as a non-taxable return of after-tax premiums (the prevailing industry view; the CRA has not issued a formal ruling on return-of-premium benefits, per the carrier's advisor guide). The chart's lines show plain cumulative dollars; its savings-pot bars bank the microscope option's cheques and grow them at the chosen after-tax return (one labelled bar per cheque, showing the pot's running total), and the money-value verdict compounds every premium and refund at that same return.
  • Out of scope, by design: CPP-D benefit amounts (scenario fails the eligibility test), WCB optional personal coverage (work-injury only), AISH (needs-tested), partial/residual claim mechanics, and the growth of the benefit itself under a COLA rider while on claim.