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.
CPA Select offers affordable Income Protection Insurance – providing a generous monthly benefit that replaces lost income in the event of serious accident or illness.
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.
This coverage includes special features at no additional cost:
|Choose the Own Occupation Option and/or the Future Insurability Option when you apply, to get even greater value. |
|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 CPA Select Income Protection Insurance. More|
Now you can be fully covered by CPA Select Income Protection Insurance even if you are covered by a group long-term disability (LTD) plan. See how you can use CPA Select Income Protection Insurance to offset the coverage gaps in your group disability plan:
Typical Employee Group Disability Plan
CPA 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:
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.
- 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.
See the table "Applying the Income Replacement Formula at Application".
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.
|Your Personal Benefit Maximum|
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 HIHI 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.
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.
Note: During the application process, you will need to disclose your personal medical and non-medical history on the application. Any past or present medical and non-medical information provided on your application will be used by the underwriter to assess your eligibility for disability insurance.
- To apply for Member Income Protection, you must be a member of one of the following participating bodies:
- Chartered Professional Accountants of New Brunswick
- Chartered Professional Accountants of Newfoundland and Labrador
- Institute of Chartered Accountants of Nova Scotia
- Chartered Professional Accountants of Ontario
- Chartered Professional Accountants of Prince Edward Island
- Chartered Professional Accountants of 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.
|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:
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.
- 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.
- 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 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.