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Member Income Protection Disability Insurance
An accident or illness resulting in disability can dramatically reduce or even end your income without warning. When that happens, everyday expenses (and new expenses such as medication, nursing care and physiotherapy) can quickly diminish your savings. Because your earning power is your greatest asset, it makes sense to give it the greatest possible protection. For that reason, the Institute endorses Member Income Protection Disability Insurance.
Coverage is available in a choice of 5 to 150 units, each offering $100 of monthly benefits, for up to $15,000 in non-taxable monthly benefits. You can choose the Waiting Period (0-7, 30, 60, 90, 120, 180 or 365 Days) that suits your situation best. The maximum amount of coverage that you can apply for depends on your Earned Income.
When you apply for coverage you can determine the maximum monthly benefit you can buy, based on your Earned Income, with the following Income Replacement formula (or simply click here):
Income Replacement formula: first $5,000 of monthly Earned Income at 60%, next $5,000 at 50%, next $5,000 at 35%, excess at 25% up to $15,000 maximum benefit. |
Annual
Earned Income | Non-taxable
Monthly Benefit* | Annual
Earned Income | Non-taxable
Monthly Benefit* |
$48,000 | $2,400 | $250,000 | $8,800 |
$65,000 | $3,300 | $300,000 | $9,800 |
$75,000 | $3,700 | $350,000 | $10,800 |
$100,000 | $4,700 | $450,000 | $12,900 |
$150,000 | $6,400 | $552,000 and over | $15,000 |
* Rounded up to the nearest $100.
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 the Insured is entitled results in total monthly income from all sources which exceeds 100% of the Insured’s Pre-Disability Average Net Monthly Earned Income, Manulife Financial will reduce the Monthly Income Benefit as provided hereunder 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 Income Benefit payable from this plan; and
- other income protection benefits, 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 the Insured belongs, any salary continuance, pension, group insurance plan or other employee benefit plan sponsored by an employer by whom the Insured is employed.
This Plan Covers Total Disability, Presumptive Total Disability and Partial Disability
- Total Disability means that due to sickness or injury, you are unable to perform the essential duties of your regular occupation and you are not engaged in any other gainful occupation. With the Own Occupation option, you can qualify for Total Disability benefits and work in another occupation.
- Presumptive Disability means that even if you are able to work, you will be considered Totally Disabled if the injury or sickness results in total and irrecoverable loss of use of limbs, or total loss of sight, hearing, or speech.
- Partial Disability means that due to sickness or injury, you are able to perform only some of the essential duties of your regular occupation or you are engaged in another gainful occupation, and you suffer at least a 20% loss of Earned Income.
Receiving Your Benefits
- Total and Presumptive Disability (with Own Occupation, if elected)
Non-taxable benefit payments begin after you have completed your chosen waiting period. If Total Disability commences prior to age 63, your monthly benefit will be payable to age 65. If Total Disability commences after age 63, your monthly benefit will be payable for 24 months.
- Partial Disability
If you suffer at least a 20% loss of pre-disability Earned Income, you will receive a proportionate benefit payment that begins after the chosen waiting period has expired or after 30 days, whichever is longer. The benefit paid equals your full insured benefit reduced by the ratio of your Earned Income before and after disability. For the first six months, the minimum benefit payable will 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
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 without the usual waiting period.
Survivor Benefit
If you die while receiving benefit payments, a three month lump sum payment will be made to your beneficiary.
Eligibility
To apply for Member Income Protection Disability Insurance, you must currently have an Earned Income and be eligible to apply for Member Term Life insurance.
See the Member Income Protection Disability Insurance rates that apply to you, or let us calculate the cost for you.
Options You Can Choose
- Future Insurability Option (FIO)
If you are a resident of Canada, between 18 and 50 years of age, and applying for Income Protection Disability Insurance, you are also eligible to apply for the Future Insurability Option (FIO) with your Income Protection benefit. The FIO allows you to increase your coverage without medical evidence. When you apply for Income Protection, you can purchase FIO of up to 25% of your coverage amount (both applied for and already in force), or $2,000, whichever is less. Every other policy anniversary, beginning on your second policy anniversary, you can exercise up to 100% of your FIO rider amount each time. The additional total monthly Income Protection amount must be supported by your Earned Income. Your total monthly Income Protection amount, including the additional FIO amount, cannot exceed the maximum monthly benefit available under the Institute’s Plan, now $15,000. The additional premiums for this rider will remain the same for the duration of the benefit. The FIO terminates at Age 55.
- Own Occupation Option
If you purchase the Own Occupation Option rider for an additional premium and you cannot perform the essential duties of your regular occupation, you will be considered totally disabled, even if you are working in another occupation.
To exercise a Future Insurance Option (FIO) or to add the Own Occupation Option to existing Income Protection Insurance, please call Customer Service at 1 866 219 4245 between 8 a.m. and 8 p.m. ET, Monday to Friday, or email am_service@manulife.com.
Built-in Value-Added Features
- 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 using the annual escalation factors under the Canada Pension Plan, subject to a maximum escalation of 8% per annum. No additional premiums are required for the COLA.
- All your premiums waived if you are disabled
If you become totally and permanently disabled before age 65, all premiums for Member Income Protection Disability Insurance will be waived for as long as disability benefits are being paid. No additional premiums are required for this feature.
- Coverage that goes where you go
So long as you remain a member of your Institute and maintain your eligibility, you can take this coverage with you from one job to the next, anywhere in the world you may go. However, Manulife Financial has the right to request that you return to Canada, Bermuda or the U.S. to provide adequate proof of disability if you make a claim for disability benefits from elsewhere.
- Termination on retirement
Your Member Income Protection Disability 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.
- Limitations and exclusions
A claimant must be under the care of a qualified physician at all times. Disabilities resulting from self-inflicted injury, committing, attempting or provoking a criminal offence, insurrection or war, and uncomplicated pregnancy and childbirth are not covered.
You can apply online (except for residents of Quebec) or print an application (including residents of Quebec) and mail it to: Manulife Financial, Affinity Markets, P.O. Box 4213, Station A, Toronto, Ontario, M5W 5M3.
Have you become a new Institute member within the past 90 days? If so, you are invited to take advantage of FOUR limited-time insurance plan offers, including an opportunity to enroll for up to $1,500/month of Income Protection Disability Insurance benefits — with no medical questions!
If you have questions or feedback about our coverage, click here to contact us online, telephone us toll-free at 1 866 219-4245 Monday through Friday from 8 a.m. to 8 p.m. ET, or e-mail us at am_service@manulife.com any time.
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