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'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.

Plan Member
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.

Plan Sponsor
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.

Policy Lapse
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.

Policy Loan
A loan made on the security of the cash value of your policy.

Policy Statement
A report listing current conditions and transactions of the latest reporting period.

Policy Surrender
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.

Premium Tax
Tax levied by the provincial government on premiums paid.

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