'Non-Occupational' Definition of Disability
For individual disability insurance, the definition of total
disability is related to the inability to perform the client's
regular occupation. If you're unemployed, on leave or sabbatical
when an injury or sickness occurs, a total disability claim
can still be payable. Under this provision, your disability
will be determined based on your ability to perform the regular
substantial activities being performed prior to the onset of
your disability. Furthermore, if you were scheduled to return
to work (e.g., sabbatical, maternity leave), the definition
of disability would change to the regular one on the date when
you were scheduled to return.
Under group benefit plans, 'non-occupational disability'
means a disability not resulting from an injury or illness
caused by your employment (as these would normally be covered
by Workers' Compensation).
'Own Occupation' Definition of Disability
Under an individual disability policy, an 'own occupation'
definition means that you will be considered totally disabled
if you cannot perform the duties of your usual job, regardless
of whether or not you're working at another job. This additional
level of protection is typically of interest to professionals,
who may wish to return to work in a different field if they
were permanently disabled, and want to maintain the income
level they enjoyed before their disability.
Group benefit plans can also include a clause that provides
benefits if you're unable to perform the essential duties
of your own occupation (your type of work, not just your own
job). Where such a definition is included, it generally applies
for a certain time period (e.g. 24 months) after which benefits
will be paid only if you're unable to work at any occupation.
'Partial' Definition of Disability
Some individual disability policies contain a 'partial disability'
feature, which provides benefits if you're unable, due to
injury or sickness, to perform one or more of the important
duties of your regular occupation OR are unable to work for
more than half the usual amount of time. You must be under
regular care and attendance of a physician.
A group benefit plan may also include a clause that provides
a 'partial disability' benefit if you're only able to work
in a reduced capacity. Please see your group contract for
details (if such a clause is included).
Permanent Life Insurance
Permanent insurance solutions allow you to insure against
the unexpected while increasing the value of your investment
over time. Advantages include tax-advantaged investment growth
and tax-free insurance benefits.
A plan member is a person who participates in and is covered
under a group benefits plan, such as an employee of an organization
or a member of an association or a union group.
A plan sponsor is an employer, association, labour union or
other group offering a benefit plan to its members.
The policyowner is the individual who is the legal owner of
the policy. The policyowner can be a single individual. For
non-registered policies, a policyowner can also be a group
of individuals, subject to any applicable legislation. The
policyowner can be no younger than the age of majority. All
policy reporting will be sent to the policyowner.
If the conditions for keeping the policy in-force have not
been met (for instance, there isn't a cash value and premiums
remain unpaid after the grace period) then the policy will
lapse, and coverage will end.
A loan made on the security of the cash value of your policy.
A report listing current conditions and transactions of the
latest reporting period.
Request from the policyowner to cease coverage and return
the cash value. The policyowner surrenders the contract to
the insurance company.
The set amount you pay in order to be insured by your individual
life, disability or critical illness insurance policy, association
plan benefits, or that a plan sponsor (and/or plan members)
must pay to maintain a group benefit plan.
Tax levied by the provincial government on premiums paid.