Overview

What if you were unable to work because of an accident or sickness? How would you support yourself and your family?

The CPSA Disability Insurance Plan can help.

It offers CPSA members:

• 24-hour coverage
  
• Up to $7,500 in monthly benefits (depending on your income)
  
• Smoker and non-smoker rates
  
• Residual (partial) disability benefits
  
• 60 or 119 day elimination periods
  
• Cost-of-living adjustment rider available
  

And if you pay for this coverage with after-tax dollars, any disability benefits you may receive are tax-free!

You can purchase up to $7,500 of benefit per month, depending on your net earned income, if you work 25 hours a week in the Sales and Marketing profession and are under age 60. You can choose either a 60 or 119 day elimination period. Benefits are payable to age 65. The plan includes a Residual Disability Benefit which pays a partial benefit if you return to work but with a reduced income after receiving a benefit due to total disability. As well, you have the option to purchase a cost of living adjustment (COLA) rider. If your income is at least net $75,000 and you are an owner or partner you may be eligible for our new Elite Disability Insurance plan.

Note: You must be in good health to obtain this insurance coverage. Depending upon your age and the amount applied for, additional medical information may be requested. Coverage may be declined or modified.

Amount of Insurance

Coverage is available in units of $100 (of monthly benefits) from $500 to $7,500, depending on your level of Net Earned Income (your income from any and all occupations after deducting business expenses but before income tax). The Income Ratio Guide will show you the maximum coverage for which you are eligible. Note: if the premium is paid by your company, you have the choice of selecting a taxable benefit, which is suggested as if this was the case, because the benefit becomes taxable at claim time. The percentage in this case is slightly higher in determining your monthly maximum benefit eligible.

Income Ratio Guide-non-taxable

* Percentage of Annual Net Earned Income is divided by 12 months in order to calculate your Monthly Disability Benefit.

What's Covered?
Any disability caused by an accident or sickness, which causes you to be totally disabled and unable to work. This insurance will pay you a monthly benefit to replace your lost income. Monthly benefit payments will begin after you have been disabled for the elimination period you have selected (either after 60 days or 119 days). The elimination period is the number of consecutive days* you must be totally disabled before benefits begin.

* If while completing the elimination period you suffer two successive periods of total disability separated by less than 30 consecutive days of full-time employment, due to the same or a related cause, the two periods shall be considered one period of total disability for the purposes of satisfying your elimination period.

Total Disability Benefits
To qualify for benefits, you must be totally disabled. Benefits are paid for the first 2 years of your disability so long as you are unable to perform the essential duties of your own occupation. After this two-year period, your monthly benefits will continue until age 65 so long as you are unable to perform the duties of any occupation for which you are reasonably suited based on your education, training or experience. At all times, you must be under the care of a physician.

Residual Disability Benefits
You are eligible for Residual Disability Benefits if, after receiving your monthly benefit due to total disability:

• you return to your regular occupation on a limited basis, but suffer a loss of income of 20% or more; or
  
• you are unable to return to your regular occupation, but are able to work at another occupation, and as a result, you suffer a loss of income of 20% or more.
  

Under the Residual Disability Benefits, you receive a portion of your monthly Total Disability benefit equal to your percentage of lost income. Residual Disability Benefits are payable until age 65 while you remain disabled and are under the care of a physician.

Optional Cost of Living Adjustment Rider
To protect your monthly disability benefits from inflation, you can add this valuable Optional Cost of Living Adjustment (COLA) Rider to your basic coverage.

The Cost of Living Adjustment Rider increases your monthly benefit once you have been totally or residually disabled for 12 consecutive months. Each year on the anniversary of your disability, your monthly benefit is increased in accordance with the Consumer Price Index (to a maximum of 5%). These annual inflation adjustments continue until you reach age 65 or recover from your disability.

Your coverage under the Cost of Living Adjustment (COLA) Rider will end on the date your basic monthly disability benefit terminates, or on the premium due date immediately following Maritime Life's receipt of your written request to terminate this rider, whichever is earlier.

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