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Canada (510,396)
MTHEL 131 (111)
David Kohler (106)
Lecture 10

MTHEL131 lecture 10.docx

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Mathematics Electives
David Kohler

Top disability insurance providers: • RBC insurance o bought small life insurance company o bought the Canadian Operations of UNUM (disability insurance operators) • Great west life • Canada life Importance of Individually owned disability insurance Important aspect of policy that can be tailored to your own needs: • Benefit amount (amount of coverage stated in monthly terms) o 60-70% of monthly income from employment only (not investments) o Prevent over-insurance (concern of insurer) so employed individual is not earning more when they are disabled as they are when they’re working • Waiting period (length of time between first day of disability and first day of payment) • Benefit Period (until you are able to return to work or you reach the end of your benefit period ) • Occupation (professional earning >$100K, professional earning 4-6 months Ex: Brain surgeon with 1. OWN OCC • develops twitch in hands • insurance will pay 2. ANY OCC • Develops twitch in hands • Insurance will not pay If policy claimed, and disability resolved: • Policy owner returns to work • Benefit payments stop • Policy still in act Claim will always be approved in worst case scenario, no matter the policy or occupation (ie. Acoma) Tax on disability benefit: • If you pay the premiums yourself, and become disabled, the benefit you receive will be tax-free • If someone else pays even a portion of your premiums (ie. Employer), upon disability the benefit is taxable EX: Employer put together group benefit package, including: • Dental • Health insurance with prescription drugs • Outside of Canada health insurance • Small amount of group life insurance • Disability insurance Employer must provide a minimum of half the premium cost The benefit amount of the long-term disability insurance will be taxable Riders on disability insurance 1. Waiver of premium (WP): • If you become disabled, insurance company will wave premiums during waiting period (first
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