Income replacement in the event of disability

Transcription

1 Personalized disability and health care protection For Representative Use Only Income replacement in the event of disability

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3 SOLO tm business expense SOLO tm disability income Self-employed workers Business owners and entrepreneurs Employees with or without a group plan

4 What do you think your most valuable asset is? Is it your property your vehicle your investments or other? Have you ever thought about how much money you will earn by working up to age 65? earnings Age $24,000 $36,000 $48,000 $60,000 $100, $1,809,630 $2,714,445 $3,619,260 $4,524,076 $7,540, $1,451,090 $2,176,635 $2,902,180 $3,627,725 $6,046, $1,141,810 $1,712,715 $2,283,620 $2,854,525 $4,757, $875,022 $1,312,534 $1,750,045 $2,187,556 $3,645, $644,889 $967,333 $1,289,778 $1,612,222 $2,687, $446,374 $669,561 $892,748 $1,115,935 $1,859, $275,133 $412,700 $550,266 $687,833 $1,146, $127,419 $191,129 $254,839 $318,548 $530,914 Note: These figures are based on current annual income assuming a 3% pay increase each year. From this perspective, your lifetime earnings are probably greater than the combined value of your other assets. Therefore, the most valuable asset from a financial point of view is your earning power! It certainly enables you to maintain or even increase the standard of living you and your family deserve. What is the biggest threat to this valuable asset? A disability. There is a 1 in 3 chance that you ll experience a period of disability that lasts for 90 days or longer by the age of 65. Source: Statistics Canada If you were at a crossroads, would you feel confident about selecting a path, knowing that one of the three will certainly lead to a disability? Average length of a long-term disability Age Length years years years years years years years years Source: 1985 Commissioner s Disability Table A (Experience Table) (Individual Insurance) Did you know that 37% of default payments on mortgage loans are due to a disability? Source: Statistics Canada 4

5 Without your most valuable asset, how long would it take to affect your standard of living? Imagine that over the next six months, due to an illness or accident, your life took on a single purpose: Recovery. How long would you be able to continue paying your current expenses? Two weeks? Two months? Two years? During your recovery, who would take care of you or your children? How would your business operate? What about your family or clients? What additional costs would be incurred? Calculate your regular monthly expenses (that would also be due during a disability). Rent or mortgage $ Food $ Utilities $ Municipal and school taxes $ Vehicle (fuel & maintenance) $ Loans $ Credit card balances $ Property insurance $ Life insurance $ Home maintenance $ Childcare $ Tuition $ Retirement savings $ Other $ TOTAL MONTHLY EXPENSES $ Which of the following options are available to help you maintain your standard of living and cover any additional expenses related to a disability? Available Options? How long will they last? What percentage of your income will they replace? Will they affect your budget? Your financial future? Group insurance Employment Insurance (EI) Savings Personal loan Spousal income CPP/QPP Sale of assets Other Wouldn t you rather preserve your savings and avoid liquidating your assets or taking out a loan in the event of a disability? Receive a monthly benefit to replace your income and cover all your expenses during your recovery from a disability. 5

6 Disability Income SOLO TM Disability Income pays you a monthly benefit to replace your income or salary when you are not able to work due to an illness or accident. The amount of the monthly benefit is based on your monthly salary and is paid to you for a pre-selected period of time. The benefit can be used to cover your living, business, or rehabilitation expenses; without spending your hard earned savings or liquidating assets during a period of time when you should be focusing on a complete recovery. Eligibility requirements To purchase SOLO TM Disability Income, you must: 1. be 18 to 60 years of age; 2. be employed; 3. work at least 30 hours per week AND: a. be employed at least 40 weeks per year; OR b. be employed between 35 and 39 weeks per year and select a waiting period of at least 60 days; 4. satisfy the complete financial and medical underwriting criteria 1. Unique Features! No integration on the first $1,200 of benefits guaranteed For the first 36 months of your disability, the first $1,200 of your monthly benefit will not be reduced by the amount of any other benefits you may receive from the government or other insurance companies. RRSP Benefit A long-term disability may not only force you spend your savings, but it may also have a significant impact on your ability to save for retirement. Critical Illness Benefit A critical illness may not always lead to a total disability; however, the result is often an increase in medical costs and an immediate absence from work. With this built-in feature, if you are diagnosed with 1 of the 25 critical illnesses/conditions covered, you will receive a tax-free, lump sum payment equal to 5 times your monthly disability benefit. TOTAL INCOME/SALARY Before a Disability SAVINGS EXPENSES Onset of a Disability SAVINGS EXPENSES Long-term Disability EXPENSES Covered illnesses/conditions: Alzheimer s Disease Aortic Surgery Aplastic Anemia Bacterial Meningitis Benign Brain Tumour Blindness Cancer Coma Coronary Artery Bypass Surgery Deafness Heart Attack Heart Valve Replacement Kidney Failure Loss of Independence Loss of Limbs Loss of Speech Major Organ Transplant Major Organ Failure on Waiting List Motor Neuron Disease Multiple Sclerosis Occupational HIV Paralysis Parkinson s Disease Severe Burns Stroke Income exceeds Expenses = Savings TIME Income drops & Expenses rise = Savings dwindle DEBT Income drops & Expenses rise further = Debt Incurred As a result, in addition to your monthly benefit, an extra 5% of the monthly benefit will be deposited into a DFS RRSP or savings account of your choice, on the 13th month of your disability income payment. Death Benefit In the event of death while receiving disability benefits, your designated beneficiary will receive a tax-free, lump sum payment equal to 5 times your monthly benefit, whether or not your death is related to your disability. 6

7 Description of the disability benefit Benefit amount You can select a benefit amount between $400 and $10,000 per month. This amount is based on your annual income and occupation class 1. Waiting period The waiting period is the length of time that must elapse before the benefit is paid. You have 8 options: Days: The + sign means that the benefit is paid starting on the first day in the event of an accident. For waiting periods less than 120 days, the benefit is paid on the first day in the event of hospitalization or day surgery. You do not have to be continuously disabled to satisfy the waiting period; for instance, you can combine successive disability periods of seven (7) days or more to meet the waiting period if it results from the same cause. Benefit period The benefit period is the length of time you are disabled and receiving monthly disability benefits. You have 3 options: 2 years 5 years Up to age 65 Premium payments You have 2 options: 10-year level premium: You pay the same amount for ten (10) years. After each 10-year interval, your premium is adjusted based on your current age and the premium rates in-force at that time. Level premium to age 65: Your premium is calculated so as to remain the same until age 65. You can convert the 10-year level premium to level premium to age 65 (or vice versa) at any policy anniversary. During a period of disability, your premium payments are waived after the waiting period has been satisfied and for as long as a monthly benefit is paid to you. Policy or coverage termination Your disability insurance protection ends on the earliest of the following events: Upon death At age 65 Policy lapse date Continuation of benefits You can, however, continue your coverage after age 65 if the insurance is converted to a Term 1 (YRT) disability plan. Your premium will be adjusted each year based on your current age and the rates in-force at that time. To be eligible, you must be working full-time and cannot be disabled. A medical examination is not required. Insurance that adapts to your needs! Exchange clause In today s marketplace, it is natural that you may decide or be forced to change or embark on a new career path. More and more people are deciding to start their own business, or alternatively, decide to accept a salaried position. With this built-in exchange clause, during the first seven (7) years, and before age 65, you can decide to convert your disability income coverage into business expense protection (or vice versa), for the same monthly benefit amount. This exchange clause will be based on your age when the contract was purchased and will not require any further medical evidence. Free legal assistance service! Your disability protection also includes a free legal assistance service that you can rely on for your day-to-day experiences. Legal experts are available to inform you of your rights and will guide you towards any legal resources you might require. This service does not form part of the policy contract and may be discontinued at any time without any notice. 7

8 Self-employed workers, business owners, employees with or without a group plan... Supplementary Benefits! Cost of Living During your career, your income is generally protected against inflation by annual salary increases or price increases to the products and services you provide. The Cost of Living rider protects your income by increasing your monthly benefit when a total or residual disability period extends beyond 12 consecutive months. This increase is based on Statistics Canada s Consumer Price Index, subject to an annual maximum of 5%. Partial Disability Despite your disability, if you continue to work on a part-time basis, most standard disability protection will not pay a monthly benefit unless you are totally disabled. The Partial Disability rider applies when you are partially disabled, or when you are gradually returning to work as part of your recovery from a total disability. It helps to bridge the gap between your pre-disability income and the income you are able to earn while you are disabled. You will receive 50% of your monthly benefit with no integration on the first $600. This benefit will continue to be paid until the shortest period listed below : 12 months (occupation classes 4A and 3A) or 6 months (occupation classes 2A, A and B) The end of the pre-selected benefit period minus any benefit periods already paid. Residual Disability It may take some time for you to recover, and in some cases, you may never fully do so. Even if you return to work, you may not be able to achieve your pre-disability income/ earnings. The Residual Disability rider pays you a benefit that is equal to the sum of the lost income. For example, if your income is reduced by 40%, you will receive 40% of the monthly benefit. Furthermore, if your income drops by 80%, you will receive 100% of your monthly benefit. To receive the Residual Disability benefit, your loss of income must represent at least 20% of your income, whether fullor part-time, and you must receive continuous medical care. It is paid to you up until the pre-selected benefit period minus any benefit periods already paid. Return of Premium Disability income insurance safeguards you against the loss of income due to a disability. But what happens to your premiums if you never suffer a disability? Whether or not you ever become disabled, you have the option of receiving 50% of the premiums paid, minus any monthly benefits paid. The refund of premium is available on the following optional surrender dates: 1) The later of: The policy anniversary closest to your 55th birthday; OR The 10th anniversary of your policy contract. 2) The policy anniversary closest to your 65th birthday. If you decide to receive the refund of premium between the ages of 60 and 65, the return of premium percentage will be reduced by 5% per year for each year prior to age 65. Future Insurability In the event that your career path changes, the monthly benefit amount you select today may not meet your future income needs. With age, your health may also begin to deteriorate which may prevent you from being eligible for higher benefits. The Future Insurability rider enables you to increase your benefit amount based on your future needs, without having to submit new medical evidence. You can request up to five increases of up to 20% of the pre-selected benefit amount. These increases are available at each policy anniversary up to age 56 providing you are not receiving benefits. Regular Occupation Period Extender After 24 months of total disability, to continue to be eligible to receive benefits, you must not only be unable to perform your regular occupation, but you must also be unable to perform any other occupation in accordance with your education, training and experience. The Regular Occupation Period Extender rider prolongs your eligibility for monthly benefits, if you continue to be totally disabled and are unable to perform the duties directly related to your regular occupation, by five (5) years or up to age For additional information, see page 26. 8

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10 Business Expense SOLO TM Business Expense protection pays you a monthly benefit to help cover your overhead costs which keep your business in operation when you are unable to work due to an illness or accident. The monthly benefit would cover fixed operating expenses such as rent, utilities, taxes and payroll while you take the necessary time to recover. Insurance that adapts to your needs! Exchange clause In today s marketplace, it is natural that you may decide or be forced to change or embark on a new career path. More and more people are deciding to start their own business, or alternatively, decide to accept a salaried position. With this built-in exchange clause, during the first seven (7) years, and before age 65, you can decide to convert your disability income coverage into business expense protection (or vice versa), for the same monthly benefit amount. This exchange clause will be based on your age when the contract was purchased and will not require any further medical evidence. Free legal assistance service! Your disability protection also includes a free legal assistance service that you can rely on for your personal or business needs. Legal experts are available to inform you of your rights and will guide you towards any legal resources you might require. This service does not form part of the policy contract and may be discontinued at any time without any notice. SOLO TM Disability Income and SOLO TM Business Expense are great financial solutions for business owners with small to medium-sized companies. Eligibility requirements To purchase SOLO TM Business Expense, you must: 1. be 18 to 60 years of age; 2. be employed; 3. have been working for your current company for at least two (2) years or meet the continued employment criteria AND: 4. work at least 30 hours per week and a. be employed at least 40 weeks per year; OR b. be employed between 35 and 39 weeks per year and select a waiting period of 90 days or more; 5. satisfy the complete financial and medical underwriting criteria 1. Eligible business expenses: Rent, hydro, telephone and other utilities Payroll 2 Employer contribution to a group insurance plan, employee pension plan, CPP/QPP, workers compensation, HRDCand the provincial health plan Household maintenance Professional services of an external accountant Leasing and depreciation of equipment, including automobiles Professional/association dues Business taxes and licences Depreciation of equipment and premises belonging to the insured Postage stamps and other postage and office supplies Property taxes for the place of business Interest charges, except for those on over-drawn accounts Professional liability insurance premiums Amortization or periodic repayment of capital, including mortgages 2 Fire, theft and casualty insurance premiums 10

11 For self-employed workers, business owners, entrepreneurs Description of the disability benefit Benefit amount You can select a benefit amount between $400 and $6,000 per month. This amount is based on your monthly expenses and occupational class. 1 Waiting period The waiting period is the length of time that must elapse before the monthly benefit is paid. You have 3 options: Days: The + sign means that the benefit is paid starting on the first day in the event of an accident. For waiting periods less than 120 days, the benefit is paid on the first day in the event of hospitalization or day surgery. You do not have to be continuously disabled to satisfy the waiting period; for instance, you can combine successive disability periods of seven (7) days or more to meet the waiting period if it results from the same cause. Premium payments Level premium to age 65: Your premium is calculated so as to remain the same until age 65. During a period of disability, your premium payments are waived after the waiting period has been satisfied and for as long as a monthly benefit is paid to you. Policy or coverage termination Your disability insurance protection ends on the earliest of the following events: Upon death At age 65 Policy lapse date Continuation of benefits You can, however, continue your coverage after age 65 if the insurance is converted to a Term 1 (YRT) disability plan. Your premium will be adjusted each year based on your current age and the rates in-force at that time. To be eligible, you must be working full-time and cannot be disabled. A medical examination is not required. Benefit period The benefit period is the length of time you are disabled and receiving monthly disability benefits. You have 2 options: 2 years 3 years 1 Additional information is available on page Some conditions apply. Consult your representative s guide. 3 The monthly benefit you receive is, however, considered taxable income for your company. Your policy premiums are taxdeductible as a regular business expense. 3 11

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13 SOLO tm Accident disability income SOLO tm LIVING EXPENSES Seasonal, contract or part-time workers High risk occupations Unemployed

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15 You are unique In fact, your unique qualities take you on the road less travelled... Your strong sense of responsibility and independence make you excel at what you do Who you are and what you do are important: to yourself, loved ones, your clients and society. You are exquisite The independence and determination that sets you apart relies, in large part, on your state of health. The day your health is significantly compromised due to an illness or accident... is the day your world starts to fall to pieces. Financially speaking, do you have a contingency plan in the event of an accident or illness? Although your back-up plan doesn t guarantee that you will be back on your feet from one day to the next, it will however help you cover : Rent/mortgage and fixed expenses like utilities, groceries, transportation, etc.; Childcare expenses and home maintenance; Treatment or rehabilitation costs. Without a contingency plan, what will you do? Spend your savings? Sell your assets? Add to your debt vis-a-vis a loan? Rely on your spouse s income? Submit an EI or CPP/QPP claim? Wouldn t you rather preserve your savings and avoid liquidating your assets or taking out a loan in the event of a disability? Receive a monthly benefit to replace your income and cover all your expenses during your recovery from a disability. Finally... Disability protection that s right for you! SOLO TM disability protection pays you a monthly benefit for a pre-selected period of time when you suffer a disability due to an illness or accident. The benefit amount is based on your expenses and income. Protect yourself, your family and your business against the financial hardships associated with an accident or illness. SOLO TM helps you cover living, business, or rehabilitation costs without compromising your financial situation. That way, you can devote all your energy to ensuring that your health and lifestyle are restored. 15

16 Living Expenses SOLO TM Living Expenses protects you against the financial hardships associated with a disability. This insurance covers you 24 hours a day, 7 days a week while you are busy at work or even in your own home. In the event of a disability, you will receive a monthly benefit to help you maintain your lifestyle both during and after your recovery. Eligibility requirements If you would like monthly benefits of $500 or less, you must: 1. be 18 to 60 years of age; 2. satisfy the complete medical and financial underwriting criteria 1. If you would like monthly benefits of more than $500, you must also: 1. be employed; 2. have worked at least 20 hours/week during the four (4) weeks prior to purchasing the coverage; To include accidental coverage at age 65, you must also: 1. have worked at least 40 weeks in the last year; 2. have earned at least $12,500 in the last year. Unique Features! No integration on the first $1,200 of benefits guaranteed For the first 36 months of your disability, the first $1,200 of your monthly benefit will not be reduced by the amount of any other benefits you may receive from the government or other insurance companies. Free legal assistance service Your disability protection also includes a free legal assistance service that you can rely on for your day-to-day experiences. Legal experts are available to inform you of your rights and will guide you towards any legal resources you might require. This service does not form part of the policy contract and may be discontinued at any time without any notice. 1 For more information, see page

17 Seasonal, contract or part-time workers, high risk occupations and unemployed... Description of the disability benefit Benefit amount You can select a benefit amount between $400 and $1,500 per month. This benefit amount is based on your monthly expenses. Waiting period The waiting period is the length of time that must elapse before the monthly benefit is paid. A 30-day waiting period is available only. You do not have to be continuously disabled to satisfy the waiting period; for instance, you can combine successive disability periods of seven (7) days or more if it results from the same cause. Benefit period You have 2 options: 12 months for disability due to an illness or accident 12 months for disability due to an illness and up to age 65 for a disability due to an accident Premium payments Level premium to age 65: your premium is calculated so as to remain the same until age 65. During a period of disability, your premium payments are waived after the waiting period has been satisfied and for as long as a monthly benefit is paid to you. Policy or coverage termination Your disability insurance protection ends on the earliest of the following events: Upon death At age 65 Policy lapse date You are not required to provide proof of payment such as receipts or invoices at time of claim to receive your benefit. 17

18 Accident Disability Income SOLO TM Accident Disability Income is designed to protect you against the financial consequences of an unfortunate accident that causes you to be absent from work for an extended period of time. You will receive a monthly benefit to help you maintain your standard of living and cover any additional expenses associated with your accident so that you can focus on your complete recovery. Eligibility requirements To purchase SOLO TM Accident Disability Income, you must: 1. be 18 to 60 years of age; 2. be employed; 3. have worked at least 20 hours/week during the four (4) weeks prior to purchasing the coverage; 4. satisfy the complete medical and financial underwriting criteria 1. To include accidental coverage at age 65 you must also: 1. have worked at least 40 weeks in the last year; 2. have earned at least $12,500 in the last year. Unique Features! No integration on the first $1,200 of benefits guaranteed For the first 36 months of your disability, the first $1,200 of your monthly benefit will not be reduced by the amount of any other benefits you may receive from the government or other insurance companies. RRSP Benefit A long-term disability may not only force you to spend your savings, but it may also have a significant impact on your ability to save for retirement. TOTAL INCOME/SALARY Before a Disability SAVINGS EXPENSES Onset of a Disability SAVINGS EXPENSES Long-term Disability EXPENSES As a result, on top of your monthly benefit, an extra 5% of the monthly benefit will be deposited into a DFS RRSP or savings account of your choice, starting on the 13th month of a disability payment. TIME DEBT Income exceeds Expenses = Savings Income drops & Expenses rise = Savings dwindle Income drops & Expenses rise further = Debt Incurred 1 For more information, see page

19 Seasonal, contract or part-time workers, high risk occupations and unemployed... Description of the disability benefit Benefit amount You can select a benefit amount between $400 and $1,500 per month. The amount of monthly benefit is based on your monthly expenses. Waiting period The waiting period is the length of time that must elapse before a benefit is paid. You have 3 options: Days: You do not have to be continuously disabled to satisfy the waiting period. You can combine successive disability periods of seven (7) days or more resulting from the same cause. Benefit period There are 3 options available: 2 years 5 years Up to age 65 Premium payments Level premium to age 65: Your premium is calculated so as to remain the same until age 65. During a period of disability, your premium payments are waived after the waiting period has been satisfied and for as long as a monthly benefit is paid to you. Policy or coverage termination Your disability insurance protection ends on the earliest of the following events: Upon death At age 65 Policy lapse date Free legal assistance service! Your disability protection also includes a free legal assistance service that you can rely on for your day-to-day experiences. Legal experts are available to inform you of your rights and will guide you towards any legal resources you might require. This service does not form part of the policy contract and may be discontinued at any time without any notice.. A valuable option Return of Premium Disability income insurance safeguards you against the loss of income due to a disability. But what happens to your premiums if you never suffer a disability? Whether or not you ever become disabled, you have the option of receiving 50% of the premiums paid, minus any monthly benefits paid. Definition of an accident Any event that is independent of any illness or other cause and is the direct result of sudden and unforeseeable external causes and results in bodily injuries that are certified by a physician. 19

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21 For individuals that do not have access to a group/spousal health plan SOLO tm Health Health and medical

22 Health and Medical Not covered by a group insurance plan? If you are a seasonal, contract or part-time employee, a consultant or self-employed worker, you may not have access to a group health insurance plan. SOLO tm Health is the perfect way to protect yourself against rising healthcare costs and bridge the financial gap in any provincial health insurance plans. Eligibility requirements To purchase SOLO TM Health, you must: be 18 to 64 years of age; satisfy the medical underwriting criteria 1 ; be covered by a provincial health care plan. Free legal assistance service! Your disability protection also includes a free legal assistance service that you can rely on for your day-to-day experiences. Legal experts are available to inform you of your rights and will guide you towards any legal resources you might require. This service does not form part of the policy contract and may be discontinued at any time without any notice. Various features! SOLO TM Health offers you an array of features to meet your needs... and your budget. Medical and paramedical services Prescription drugs 2 Vision care Dental care Hospital coverage Travel coverage SOLO TM Health is an ideal complement to our SOLO TM portfolio or any group insurance plan. Insurance that pays for itself! If you re a self-employed worker or entrepreneur, your SOLO TM Health insurance premiums may be tax-deductible. If you receive a salary, the premiums may be considered medical expenses, entitling you to a tax credit. Robert, self-employed graphic designer: Annual SOLO TM Health premium (Option 2 with Hospital, Dental, and Prescription drugs 2 ) $990 Tax savings (based on a marginal tax rate of 40%) ($400) Net cost of his SOLO TM Health insurance $590 Expenses reimbursed by SOLO tm Health for the year: Vision care and other healthcare expenses $150 Prescription drugs 2 $140 Dental care $200 Chiropractor $100 Total reimbursements $590 Rob s net cost $0 Notes: The information provided is for illustrative purposes and does not represent all cases. Figures have been rounded to the nearest $10. Premiums are based on 2009 rates. Please consult with a professional to find out whether you are eligible for similar tax deductions. 22

23 For yourself your family your employees... Coverage description Duration of coverage Up to age 70. Premium payments Your premiums are calculated to be level during the following periods: Ages 18 to 39 Ages 50 to 54 Ages 60 to 64 Ages 40 to 49 Ages 55 to 59 Ages 65 to 69 However, as healthcare costs or the services offered by SOLO TM Health could change at any time, increases may occur during these periods. Coverage Options: OPTION 1: BASIC CORE HEALTH BENEFITS Covers all of your eligible expenses up to a maximum of $50,000 per person, for all services. Deductible: None Eligible expenses: Travel insurance 4 Medical equipment and imaging techniques, orthopedic appliances, home nursing care Alternative medicine Audiology and speech therapy Physiotherapy Ambulance services Dental care as a result of an accident Psychological treatment Policy and coverage termination Your coverage ends on the earliest of the following events: At time of death At age 70 Policy lapse date Coverage types You have 4 options: Individual: For yourself Spousal: For you and your spouse Single-parent: For you and your children Family: For you, your spouse and your children Your policy premiums are tax-deductible as a regular business expense. 3 OPTION 2: ENHANCED CORE HEALTH BENEFITS Covers all of your eligible expenses up to a maximum of $50,000 per person, for all services. Deductible: None Eligible expenses: The same as Option 1 + Higher amounts of coverage + Vision care included Hospital coverage Covers 100% of the expenses incurred for a semi-private room in a public hospital, up to $175/day. Dental care SUPPLEMENTARY BENEFITS Covers 70% of the following care: Diagnostic and preventive care, basic fillings, periodontal services, oral surgery, adjunctive general services, and minor restorative work (on dentures). Deductible: None Waiting period: Three (3) months Maximum annual reimbursement: 1 st year: $500 2 nd year: $750 Subsequent years: $1,000 Prescription Drugs 2 Covers 80% of your prescription drug costs. Deductible: $5 co-payment per prescription drug; Maximum annual reimbursement: $2, More information is available on page This coverage is not available in Quebec. 3 Benefits received by your employees are not taxable. 4 The lifetime maximum for travel insurance is $1,000,

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25 Eligibility Premiums Benefits

26 Eligibility Premiums Benefits How much does disability insurance cost? Disability insurance premiums are based on your age, health, and occupational class, and on the options you select, which means that premium rates vary widely from one person to another. Your financial representative is in the best position to help you determine the appropriate protection based on your needs and goals as well as calculate the cost of this coverage to suit your budget. What is an occupational class? It is a classification used by an insurance company to determine the level of risk associated with your job. The level of risk takes into account both the possibility of work-related illnesses and accidents as well as the possible duration of your occupation. At Desjardins Financial Security, your occupation is assigned a rating (4A, 3A, 2A, A, B, or X), which affects the cost of your disability insurance. How does eligibility for disability insurance work? To purchase disability protection, you must meet certain medical underwriting and financial criteria that are based on your age and the benefit amount you select. age General, medical, and financial information questionnaire Urine test Visit from a nurse Complete blood count (CBC) Resting ECG Driving record Inspection report 18 to to Benefit Amount = $2,000 or less Benefit Amount = $2,001 to $3, to to Benefit Amount = $4,000 to $6, to to Benefit Amount = $6, to to Note: Additional tests, medical exams, inspection or doctor(s) reports or any other information may be requested by the insurer at any time. For a monthly benefit over $1,200: If you do not receive a salary/income, please provide a copy of your tax return for the past two years. If your premiums are paid by your employer as part of a disability insurance plan, please complete a DFS Modification form. For benefit amounts of $4,000 or more, please complete a form authorizing the release of driving record information (Quebec and Alberta only). 26

27 How to submit a disability claim? 1. Visit your general physician Visit your doctor as soon as you can so that your health condition is on record. The first consultation that follows your sick leave will be used as proof of your disability start date. 2. Contact the insurance company or financial representative You can start by contacting your financial representative who will be able to guide you through the necessary steps to follow. Several documents are required: a) A preliminary statement authorizing the collection of applicable information as well as information from your employer. b) A medical report completed by your attending physician. If your waiting period is greater than 30 days, you must also provide information in your medical chart. c) Proof of your income and business expenses, if you are covered by SOLO TM Business Expense protection. 3. Adjudication of your claim Once all of your documentation is received, your claim will be processed within seven (7) business days. One of the main factors that must be determined in this analysis, is whether you meet the definition of total disability. 4. Disability benefit payment Once eligibility is approved, you will start receiving your preselected monthly benefit after the waiting period has been satisfied. Definition of Total Disability During the waiting period and the 24 1 months immediately following, you are considered totally disabled if, following an illness or accident: You are unable to perform the key duties of your regular occupation 2 ; and You are not working in any gainful occupation; and You are receiving continuous medical care. If you have selected the Regular Occupation Period Extender rider (see p. 8), after receiving benefits for this 24-month period, you will continue to receive benefits based on the criteria below. If not, you will be considered totally disabled based on the following criteria: You are receiving continuous medical care; and You are unable to perform a replacement occupation; and You are not working in any gainful occupation. If this is not the case, you will be evaluated based on your ability to carry out a replacement occupation that takes into consideration your training and experience, and that enables you to earn at least 60% of what you were earning prior to the disability. DFS may waive the continuous medical care requirement if we receive acceptable written proof indicating that further medical care would be of no benefit to you. 1 This period is 12 months for disability insurance with a 12-month benefit period. 2. An insured person who does not work in any gainful occupation or who did not work at least 20 hours/week during the four weeks immediately preceding the disability start date, must instead be incapable of performing a replacement occupation. Guaranteed benefit for 4A or 3A business owners If your income after expenses and before taxes is at least $20,000 and you have 20% ownership in the business, your monthly benefit is guaranteed! In other words, no integration applies on the first $1,200 of monthly benefit for the first 36 months and absolutely no coordination with any other plans. 27

28 Eligibility Premiums Benefits What if you suffer another disability? If you suffer another disability (not related to the initial or last disability), you will receive a new benefit after a second waiting period has elapsed. This will continue to be paid until the benefit period has expired. Recurrent Disability When you recover from a disability and then become disabled again due to the same cause, this second disability is considered to be a recurrence of the first. In this case, a second waiting period will not apply before you start receiving benefits. For a disability to be considered a recurrent disability, it must occur within six (6) or twelve (12) months of the first disability, depending on your occupational class. Successive disabilities Insurance purchase Disability Complete recovery Other disability Waiting period Waiting period You pay your premium You receive your benefits You pay your premium You receive your benefits Recurrent disability Insurance purchase Disability Complete recovery Recurrence of the same disability Waiting period You pay your premium You receive your benefits You pay your premium You receive your benefits Presumptive total DI If you suffer from a total and irreversible loss of sight, hearing, speech, the use of both hands or both feet or of one hand and one foot, you will be presumed to be totally disabled whether or not you are able to work or require treatment by a physician, and you will automatically receive your disability benefits. Organ donation If your disability is the result of organ donation, you will be eligible to receive your disability benefits if your insurance has been in force for at least six (6) months 1. Rehabilitation While you are receiving your monthly SOLO TM benefits, Desjardins Financial Security (DFS) will pay the cost of services related to a rehabilitation program. This program must be pre-approved by DFS and must not be covered by any other disability insurance coverage. 1 Some conditions apply. Consult your representative s guide. 28

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30 We have the tools you need Desjardins Financial Security is a subsidiary of the Desjardins Group, the largest cooperative financial group in Canada, with assets of $150 billion as at September 30, As a leading life and health insurer in Canada, Desjardins Financial Security ensures the financial well-being of over five million Canadians every day. Desjardins Financial Security offers a wide array of financial risk management products and solutions through a national network of distributors. SOLO TM desjardinsfinancialsecurity.com GET-SOLO ( ) TM Trademarks owned by Desjardins Financial Security Committed to sustainable development, Desjardins Group favours the use of paper that is manufactured in Canada in accordance with recognized environmental standards E (09-02) 30%