Your Professional Series Disability Income Protection Standard Issue Plan
This overview is intended to help you understand your Professional Series Disability Income Protection Standard Issue Plan. It is not a contract or an offer to provide insurance. This overview is written in plain language and does not include all terms and conditions included in your policy. In the event of a discrepancy between the language of this overview and your policy, the language your policy as issued will prevail. You may request a sample policy from us through your employer before the policy is issued.
If a policy is issued, you will have ten days from the day you receive your policy to examine its provisions. If you are not satisfied, you can return it to RBC Life Insurance Company and any premium paid will be refunded. You may also cancel your policy (without refund) at any time after that 10-day period.
Your Disability Insurance Coverage
Personal income contributes to our quality of life in a variety of ways. It makes it possible to buy products and services that we need and value, and affords us the pride and self-esteem that comes from working to earn an income. It makes sense that people will seek out ways to protect their income.
In general, there are three ways a person risks loss of income that have a practical insurance solution.
| Three Ways Income Could End: |
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Income Ending Event |
Financial Solution |
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Person Dies During Working Years |
Life Insurance |
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Person Retires and Out Lives Resources |
Retirement Savings and Annuities |
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Person Becomes Disabled |
Disability Insurance |
The Professional Series policy provides quality coverage at an affordable price.
Your Professional Series policy is non-cancellable and guaranteed continuable until age 65. Simply put, this means that we cannot alter or cancel your policy or adjust the premiums without your consent. After age 65, your coverage continues with a reduced benefit period while you remain actively and regularly employed full-time. If you are not working after age 65 you may continue your policy with a hospitalization benefit.
Income Replacement Benefits
Total Disability
You are considered totally disabled if, as a result of an injury or sickness,
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You are unable to perform the essential duties of your occupation; |
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You are not working in any gainful occupation; and |
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You are under physician’s care and receiving appropriate treatment. |
While you are totally disabled you receive a monthly benefit for the duration of the benefit period of your policy. The monthly benefit is payable after you have satisfied the elimination period.
Commencement Date
The commencement date is the date when benefits begin during a continuous period of disability, 90-720 days, as set out in your policy. Periods of disability from the same or related causes, separated by 12 months or less, will be accumulated and deemed to be continuous in order to determine the Commencement Date.
Recurrent disability
If after benefits have become payable, a period of disability ends but you become disabled again within 12 months from the same or related causes, we will consider your disability a continuation of the prior period of disability. The benefit period will continue from the first day of such recurrence.
Long-term Partial Disability Benefit
You are eligible for partial benefits if as a result of an injury or sickness:
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You are under appropriate physician's care; |
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You are not totally disabled; |
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You are engaged in your occupation or any gainful occupation; and |
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You are unable to perform: |
| 1. |
One or more of the important duties of your occupation; or |
| 2. |
The important duties of your occupation at least one-half of the time normally required. |
While you are partially disabled you receive 50% of your monthly benefit for the first 24 months and 25% for the remainder of the benefit period. This benefit is payable after you have satisfied the elimination period. Proof of loss of earnings is not required in order to receive this benefit. You may elect to switch to residual disability benefits at any time during your partial disability. Once made, this election cannot be reversed. In addition, we ensure that you are reimbursed for any additional residual disability benefit you would have received during the 12 months prior to making this switch.
Residual Disability
If your disability causes a 20% or more reduction in your earnings and you are under the care of a physician, you are entitled to collect a percentage of your monthly benefit. If this reduction in earnings exceeds 80%, we pay you 100% of your monthly benefit after the elimination period is satisfied. Proof of loss of time or duties is not required in order to receive this benefit.
Prior Earnings
We offer a selection of prior earnings' definitions from which we calculate your residual benefit. Choose one of the following definitions most favourable to you:
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Average monthly earnings from the last fiscal year prior to the date of disability; or |
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The highest average monthly earnings for any two consecutive fiscal years in the last three fiscal years prior to the date of disability. The two-year period must occur after the date of issue of your policy; or |
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Average monthly earnings for any six consecutive months during the 24 months prior to the date of disability up to 125% of the average monthly earnings from your business' last fiscal year. |
Inflation protection
After each year of disability, an inflation adjustment based on the change in the Consumer Price Index is made to your prior earnings to help ensure your disability benefits are not eroded by inflation. We guarantee that this cumulative adjustment is not less than 2% compounded per year since the start of disability. The cumulative maximum is 10% compounded per year since the start of disability
Physician's care
We may waive this requirement if we receive acceptable written proof indicating that further physician's care would not be of benefit to you.
Recurrent disability
If you recover from a disability and then become disabled again from the same or related cause within 12 months we consider it a continuation of the previous disability and waive the elimination period.
Presumptive total disability
If you permanently lose your sight, speech, hearing or use of two limbs, we waive the requirement for total disability and you receive the full benefits to the end of the benefit period regardless of whether or not you are working.
Survivor benefits
If you die while receiving a total disability benefit, your beneficiary receives a cheque for three times the maximum monthly benefit you were receiving at the time of your death.
Cosmetic or transplant surgery benefits
You may receive your monthly benefit if you are totally disabled as a result of cosmetic or transplant surgery.
Waiver of Premium
We realize the strain on your finances during a disability. In order to assist you after you have been disabled for 90 days, we pay your premiums while you remain disabled and refund those premiums paid during the first 90 days.
Focus On Ability vs. Disability
Return-to-work assistance benefit
Starting from the first day of injury or sickness, we may provide some assistance in returning you to work or enhancing your ability to work.
Our assistance may include such services as:
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Co-ordination of physical rehabilitation services; |
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Financial and business planning; |
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Vocational evaluation; |
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Education; and |
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Job placement for a new occupation. |
In addition, we may provide work site modification which could include such things as:
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Ergonomic furniture and/or equipment; |
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Mobility enhancing equipment; and |
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Visual and/or audio devices. |
If we approve the services prior to the costs being incurred, we may pay some or all of the costs of these services or approved item(s) provided you are not entitled to payment of the costs from any other sources.
Recovery benefit
If, following a paid period of disability you engage in a gainful occupation, you are entitled to collect a percentage of your monthly benefit for four months upon your complete recovery from a total or residual disability, provided you have a 20% or more reduction in your earnings. Following recovery from a partial disability, you continue to receive partial benefits for two months. You are not required to be under physician's care for either of these benefits
Your Premiums
Your premium amount will be set once your coverage is underwritten. The amount of your initial premium will be specified in your policy when it is issued.
While you remain employed with your current employer, premiums are payable monthly. If you leave your current employment and continue your coverage under this policy, you will then have the option of paying your premiums monthly or annually. The monthly premium will be calculated by multiplying the annual premium by 0.09.
If you wish to change from Smoker rates to Non-smoker rates after your policy is issued, or if you wish to reinstate your coverage after it terminates due to non-payment of premium, we reserve the right to request evidence of insurability satisfactory to us. A service fee may apply.
A grace period of thirty-one-days will be allowed for late payment of any premium.
When Coverage Takes Effect
The Policy becomes effective when all of the following events have occurred:
| 1. |
The Policy has been delivered to the Owner; |
| 2. |
All conditions for delivery to the Owner have been completely satisfied; and |
| 3. |
There has been no change in insurability since the application was signed. |
Limitations and Exclusions
We will not pay benefits:
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For disability due to an act or accident of war, whether declared or undeclared; or |
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For normal pregnancy or childbirth, but we will cover disabling complications of pregnancy or childbirth; or |
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During any period that you are incarcerated. |
Pre-Existing Condition Limitation
A pre-policy period is a period just prior to policy issue and a post-policy period is a period just after policy issue. Pre-policy and post-policy periods are determined as part of the plan design and are usually 24 months or less. We will not pay any Income Benefits, for any portion of any period of Disability which results, directly or indirectly, from any injury or sickness, or any medical condition or symptom(s) in respect of which, at any time during the pre-policy period:
| 1. |
You have incurred any health-related expenses on the advice of a physician or any other health care practitioner; |
| 2. |
You have taken any prescribed medication; |
| 3. |
You have consulted a physician or any other health care practitioner; |
| 4. |
You have received any health-related care, advice or treatment from a physician or any other health care practitioner; or |
| 5. |
A reasonable prudent person with such injury, sickness or medical condition or symptom(s) would have consulted a physician or any other health care practitioner. |
However, this limitation does not apply to disabilities commencing after the post-policy period.
Riders Which May Be Available On Your Plan
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