Individual disability income plans provide the broadest range of options and definitions of what is total, partial, and residual disability. In addition, the highest quality plans are guaranteed renewable and non-cancellable. This means premiums cannot change until the contract termination or adjustment date, which is usually age 65.

Leading Causes of Disability Insurance Claims

* Based on number of of active claims as at December 31, 2006, for group and individual
disability insurance products underwritten by RBC Life Insurance.

These disability policies can include adjustments for increases in the cost of living, guaranteed options to increase insurance without medical evidence and occupational HIV protection for health professionals.

Protecting Your Future Income
Based on your current annual income, these are your potential
earnings to age 65, assuming a 5% increase per year

At age $60 000 $96 000 $180 000
35 $3 986 331 $6 378 129 $11 958 993
45 $1 983 957 $3 174 332 $5 951 872

The maximum integrates with other disability coverage you may have.

If you have group insurance and want better plan definitions, you can purchase a second payor individual disability policy at a discount. The plan pays if your group insurance will not because of limitations in its definitions. Of course, you still have to qualify to collect under the second payor plans. For example, if you have a heart attack and can return to work on a part-time basis before your group insurance waiting period has expired, most group plans will not cover you. However, a second payor plan with 1st day residual coverage will provide you with benefits as long as you are residually disabled beyond the waiting period and have loss of income and occupational duty limitations. The individual policy benefits continue as long as there is an insurable loss.

As with individual policies, second payor plans are fully portable. This applies in cases if you lose your job or have stopped working for a period before age 65. If you have a plan, it will pay benefits if you become disabled whether or not you had a job or employment income at the time.

There are maximum issue limits based on your income, as well as other insurance
that you may have. For example:

If you earn $60,000.00 per year, you can purchase $3,450.00 per month on a non-taxable basis
If you earn $100,000.00 per year, you can purchase $5,100.00 per month on a non-taxable basis

In order to qualify for Long Term Disability Insurance, you would have to supply satisfactory evidence of insurability when purchasing a plan. Persons with pre-existing conditions may have those conditions excluded from coverage. However, in most instances you can reapply to the insurer to remove an exclusion if you have been symptom and treatment free for a period of time.

For most persons whose jobs have little or no element of manual employment, the definition of total disability can be the inability of the insured to perform the essential duties of their occupation, provided they are not working at another occupation, until age 65. They must also be under doctor's care with a few exceptions. If the plan includes partial or residual disability coverage, the insured must be unable to perform some of the duties of their own occupation and have a loss of pre-disability income greater than 20%. In the best plans, you never have to be totally disabled in order to receive benefits after the waiting period.


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