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FAQ for Disability / Salary Insurance

Q. What would be considered a disability where by I collect my monthly benefits?

Total Disability Benefits
The preferred Total Disability definition has a dual aspect which offers flexibility to the insured. A Total Disability claim can be based on either having a loss of income or an inability to perform the important duties of the occupation.

Total Disability means that due to either injury or sickness:

  • the insured is under the care of a doctor appropriate for the condition, if such care is likely to improve the insured's condition and;
  • the insured is unable to perform the important duties of his/her regular occupation and is not engaged in any other occupation, OR;
  • there is a loss of earned income of 75% or more.

This definition is applicable for the entire length of the benefit period.

Residual Disability Benefits
Residual Disability benefits are designed for insureds who are able to work part-time or in a reduced capacity and suffer loss of earned income. If the loss of income is at least 20% but less than 75%, a Residual Disability benefit will be paid . For example, if there is a 60% loss of earned income, 60% of the monthly benefit would be paid. The insured does not have to be totally disabled before Residual Disability benefits can be collected.

Residual Disability means that due to either injury or sickness:

  • the insured is under the care of a doctor appropriate for the condition, if such care is likely to improve the insured's condition and ;
  • there is a loss of earned income of at least 20% but less than 75%.

Partial Disability Benefits
Partial Disability benefits are designed for insureds who are able to work part-time or in a reduced capacity and suffer a loss of time or duties. Benefit payments are based on a specified percentage of total disability benefit. The insured does not have to totally disabled before Partial Disability benefits can be collected.

Partial Disability means that due to either injury or sickness:

  • the insured is under the care of a doctor appropriate for the condition, if such care is likely to
    improve the insured's condition and;
  • the insured is engaged in a gainful occupation and is unable to perform either:
  • a) one or more of the important duties of the gainful occupation; or
  • b) the important duties of the gainful occupation for at least one-half of the time normally required.

The monthly Partial Disability benefit will be the Total Disability benefit multiplied by:

  • 50% for the first 24 months;
  • 25% for any benefit payments which fall due thereafter.

Q. How much monthly income will I be entitled to?
You will get a percentage of your annual income.

This chart shows the maximum (ultimate) non-taxable monthly disability benefit you are eligible for
based on your income:

Annual Insurable
Income

Ultimate non-taxable
monthly benefits
  Annual Insurable
Income
Ultimate non-taxable
monthly benefits
12, 000 900 200,000 8,225
25,000 1,600 220,000 8,750
35,000 2,150 240,000 9,250
45,000 2,700 260,000 9,750
50,000 2,925 280,000 10,250
60,000 3,200 300,000 10,675
70,000 3,900 320,000 11,125
80,000 4,300 340,000 11,500
90,000 4,725 350,000 11,700
100,000 5,075 400,000 12,575
110,000 5,425 450,000 13,625
120,000 5,775 500,000 14,675
130,000 6,100 550,000 15,900
140,000 6,425 600,000 17,050
150,000 6,750   700,000 19,325
160,000 7,050 800,000 21,475
170,000 7,325 900,000 23,500
180,000 7,625 1,000,000 25,000
190,000 7,950    

Q. When will I start to be paid after a disability claim?

You do have options, depending on your financial situation we will be able to recommend one of the following options:

  • 30 day waiting period
  • 60 day waiting period
  • 90 day waiting period
  • 120 day waiting period
  • 180 day waiting period
  • 365 day waiting period
  • 730 day waiting period

The most popular option is usually the 90 day waiting period. There is also a difference in cost between the various waiting periods.

Q. What does the risk class mean when discussing disability/salary insurance?

Occupational Classification

The applicant's occupational classification determines the type of policy, the benefits payable and the premiums to be charged. The specific duties of the job, not the job title, determine the occupational class.

The following information is important when determining occupational classes:

  • daily duties and percentage of time spent on each;
  • number of years in occupation;
  • nature of business;
  • number of employees in the firm.

If the proposed insured performs a variety of duties, the percentage of time spent performing each duty
is important.

"IT'S ACTUAL DUTIES AND NOT JOB TITLES THAT COUNT"

Every insurance company will use numbers or letters to determine their classes. Here is an example:

  • Class 5: Most professional and individuals with office duties only excluding those involved in teaching, laboratory work or plant or outside supervision. i.e. Physicians, Lawyers, Accountants
  • Class 4: Professionals with some outside non-hazardous duties, laboratory work, teaching, physical activity or outside supervision. i.e. Chiropractors, Lab Technicians, Teachers. The least hazardous occupations with office and clerical work only. i.e. Office Workers, Librarians, Bookkeepers
  • Class 3: Non-hazardous occupations with clerical duties but not full-time at a desk. i.e. Auctioneer, Insurance Adjuster, Newspaper Reporter, Supervisors and Superintendants, Contractors, Inspectors
  • Class 2: People doing light manual work of a skilled or semi-skilled nature in a non-hazardous industry. i.e. Chef, Tailor, Registered Nurse's Assistant, Tradesmen who are fully qualified and whose occupation has shown good experience for this type coverage. i.e. Certified Mechanic, Electrician, Plumber
  • Class 1: Manual workers with no unusual hazards, heavy equipment operators, unskilled workers with light duties in stable industries and tradesmen who have shown poor experience. i.e. Transport Drivers, Factory Employee, Dry Waller

Q. What if I am already covered by "CSST"?

Well, the law in Quebec states that any employee is obliged to be covered with CSST. However, if you are an owner of the business or self-employed individual, you do have the right to opt out of the "CSST" plan.

Some Advantages of going with a private plan as opposed to CSST are:

  • 24 hour coverage
  • guaranteed premiums to age 65
  • cheaper rates in many cases
  • customize the plan you need to the budget you wish to pay
  • dividend income is recognized and can be insured

 

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