ICAO: CA Select - Income Protection Insurance

Your most important financial asset is your income. But an accident or illness can rob you of that income in a heartbeat. And when it does, the expense of everyday living and medical treatments can quickly deplete your savings. So, it makes sense to shield your income as best you can.

CA Select offers affordable Income Protection Insurance – providing a generous monthly benefit that replaces lost income in the event of serious accident or illness.

Plan Basics

The Income Protection Plan provides coverage for you, the Member, as follows:

Select coverage ranging from $500 to $15,000 in monthly benefits, in increments of $100. (The maximum amount of coverage that you can apply for depends on your Earned Income. For Income Protection Insurance, Earned Income is measured after business expenses, but before deduction of any personal or corporate income taxes payable on it.) See Your Personal Coverage Maximum below.
Choose a Waiting Period from 0/7 days to 365 days. The longer the Waiting Period, the less you will pay for your coverage.
Apply up to Age 65 and keep your coverage up to Age 70.

Plan Features

This coverage includes special features at no additional cost:

Automatic Cost of Living Adjustment (COLA)

Each January 1, if you have been receiving total disability benefits for the preceding six months, your monthly benefit will be adjusted for inflation. The increase will be based on the annual escalation factors under the Canada Pension Plan, to a maximum of 8% per annum.

Premiums Waived If You Are Disabled

Your premiums for this Income Protection Insurance will be waived up to Age 70 while disability benefits are being paid.

Survivor Benefit

If you die while receiving benefit payments, your beneficiary will receive a lump-sum payment equal to three times the monthly benefit payment you were receiving at the time of your death.

Coverage That Goes Where You Go

As long as you remain a Member of one of the eligible Institutes (see Eligibility below), you can take this coverage with you from one job to the next, anywhere in the world you may go.

Optional Coverage

Choose the Own Occupation Option and/or the Future Insurability Option when you apply, to get even greater value.

Own Occupation Option

If you purchase the Own Occupation Option Rider, you will be considered Totally Disabled if you are unable to perform the essential duties of your regular occupation – even if you are working in another occupation.

Future Insurability Option

Future changes in your health might stop you from getting more Income Protection when you need it to cover your growing income. The Future Insurability Option (FIO) guarantees that you can increase your coverage at future dates regardless of your health.

At every second anniversary of your Income Protection coverage until Age 55, your FIO lets you increase your coverage by up to 25% or $2,000, whichever is less, with no medical questions or health examinations. (At all times, your total monthly Income Protection amount, including the additional FIO amount, must be supported by your Earned Income and cannot exceed $15,000.)

To be eligible, you must be between Ages 18 and 51 and applying for the FIO at the same time as you apply for Income Protection coverage.

NEW FOR 2009: Getting Coverage Your Group Disability Plan Is Missing

If you're covered under an employee group disability plan, but it isn't giving you the coverage you need, now you can add to your protection with CA Select Income Protection Insurance. More

Now you can be fully covered by CA Select Income Protection Insurance even if you are covered by a group long-term disability (LTD) plan. See how you can use CA Select Income Protection Insurance to offset the coverage gaps in your group disability plan:

Typical Employee Group Disability Plan

CA Select Income Protection Insurance

Benefits are taxable if your employer pays the premiums Benefits are payable tax free as long as you pay the premiums

May cover only your basic salary Covers Earned Income, including regular bonuses and profit-sharing

Maximum benefits may not protect your full earnings Maximum benefit of $180,000 a year (on Earned Income of $545,000 a year)

May not include Cost of Living Adjustment Includes Cost of Living Adjustment

Benefits may not be payable if you can work in a different occupation Benefits may be payable even if you are working in a different occupation (if you purchase the Own Occupation option)

Benefits may begin only after a lengthy waiting period Benefits may begin immediately if you choose the 0-7 Day Waiting Period option

Coverage is only available while you are an employee Coverage is fully portable and yours regardless of your employer, or if self-employed

For more information, please read our Discussion page, FAQ and Case Study.

Your Personal Coverage Maximum

The amount of Income Protection you can purchase depends on your Earned Income. The monthly benefit maximum of $15,000 provides non-taxable income replacement on annual pre-tax Earned Income up to $552,000. More

The following tiered income replacement formula is used to determine how much coverage you can buy at application, based on your Earned Income:

60% of your first $5,000 of Monthly Earned Income,
50% of the next $5,000 of Monthly Earned Income,
35% of the next $5,000 of Monthly Earned Income, and
25% of your remaining Monthly Earned Income, subject to the $15,000 benefit maximum.
Using this formula at the time of application helps to ensure you don’t buy – and pay for – more benefits than could be paid at the time of a disability claim.

See the table "Applying the Income Replacement Formula at Application".

Your Personal Benefit Maximum

When you make a claim, your total income from employment, from this plan and from other specified sources cannot exceed 100% of your Pre-Disability Earned Income.

All Source Maximum Benefit Provision

Where the Monthly Income Benefit payable at the time of claim, together with any Net Monthly Earned Income received while Disabled, and other income protection benefits to which you are entitled, results in total monthly income from all sources which exceeds 100% of your Pre-Disability Average Net Monthly Earned Income, Manulife Financial will reduce the Monthly Income Benefit by the amount of such excess.

Total monthly income from all sources includes:

Net Monthly Earned Income received while Disabled (except where the Own Occupation Insurance Rider has been purchased);
the monthly benefit payable from this plan; and
any monthly benefit payable from any other plan, including the Canada Pension Plan, similar social security plan, or any other government plan, any benefit plan provided by any association or union to which you belong, any salary continuance, pension, group insurance plan or other employee benefit plan sponsored by an employer by whom you are employed.

Plan Rates

Refer to Your Personal Benefit Maximum to determine the maximum Income Protection benefit that applies to you, then see the rates that apply to you, or let us calculate the cost for you.

Eligibility

To apply for Member Income Protection Insurance, you must be a Member of one of the Institutes of Chartered Accountants of Ontario, New Brunswick, Prince Edward Island, Newfoundland and Labrador, Nova Scotia or Bermuda; be under 65 years of age; be resident in Canada or Bermuda; and currently have Earned Income. More

The Own Occupation Option may be applied for at the time of application or added to existing coverage.

To apply for the Future Insurability Option, you must be:
covered by or applying for Member Income Protection Insurance;
a resident of Canada or Bermuda, and
between 18 and 51 years of age.

Receiving Benefits

The benefits paid to you under the Income Protection Plan depend upon the type of disability you suffer, as determined by the following definitions. More

This Plan pays benefits when you are unable to work (and/or your Earned Income is affected) as a direct result of an illness or injury. You may qualify under one of the following definitions of disability:

Total Disability – you are considered Totally Disabled if you are unable to perform the essential duties of your regular occupation, are receiving appropriate care and treatment from a qualified physician, and are not engaged in any other gainful occupation. (Note: with the Own Occupation Option, you can qualify for Total Disability benefits and work in another occupation.)
Presumptive Disability – even if you are able to work, you will be considered Totally Disabled if the injury or illness results in total and irrecoverable loss of use of certain limbs, or total loss of sight, hearing, or speech.
Non-taxable benefit payments for Total and Presumptive Disability begin after you have completed your chosen waiting period. If your Total Disability commences prior to Age 63, your monthly benefit is payable to Age 65. If Total Disability commences after Age 63, your monthly benefit will be paid for up to 24 months.

Partial Disability means that (1) you are able to perform only some of the essential duties of your regular occupation; or (2) you are engaged in another gainful occupation, and you suffer at least a 20% loss of your Pre-Disability Earned Income. You will receive a proportionate benefit payment that begins after your chosen waiting period has expired or after 30 days (whichever is longer). You will receive a benefit equal to your full insured benefit reduced by the ratio of your Monthly Earned Income before and after disability. For the first six months, the minimum benefit payable will not be less than 50% of the Total Disability benefit, regardless of the level of income loss. If Partial Disability commences prior to Age 63, partial benefits can be payable to Age 65. If Partial Disability commences after Age 63, partial benefits can be payable for up to 24 months.
Recurrent Disability means you are covered if Total Disability from the same or related cause recurs within six months of your return to full-time work. Benefit payments will resume at once, and you will not have to satisfy another Waiting Period. Benefits will be limited to 100% of your initial pre-disability earnings.

Limitations and Exclusions

Any benefits paid to Members covered under the Income Protection Plan are subject to the following limitations and exclusions: More

A claimant must be under the appropriate care and treatment of a qualified physician at all times. Disabilities resulting from self-inflicted injury; committing, attempting or provoking a criminal offence; insurrection, terrorism or war; and uncomplicated pregnancy and childbirth are not covered.
Your Member Income Protection Insurance will terminate at Age 70 or on the date you retire or voluntarily cease to be actively engaged in the duties of your occupation (except for short leaves of absence), whichever comes first.
If you make a claim for Income Protection Insurance benefits from outside Canada, Bermuda or the U.S., Manulife Financial has the right to request that you return to Canada, Bermuda or the U.S. to provide adequate proof of disability.
All limitations and exclusions that apply to existing Income Protection coverage will also apply to the FIO.


	The CA Select Insurance Plans sponsored by the Institute of Chartered Accountants of Ontario (The Institute) are underwritten by The Manufacturers Life Insurance Company (Manulife Financial).