Long Term Disability (LTD) and Professional Overhead Expense (POE)
When it comes to your health, your family and your income, why take unnecessary risks?
We all need protection …
for our families, our finances. But finding an insurance program that’s adjustable and affordable can be time consuming and frustrating. That’s why the Canadian Chiropractic Association is pleased to offer you a Personal Benefits Insurance Plan.
This program is offered through HUB International and Manulife Financial, two leaders in the field of group insurance and related services. And it’s specially designed for members, their employees and families!
Long Term Disability
This program is designed to protect your single most valuable asset – your ability to earn an income. And if you pay for this coverage with after-tax dollars, any benefits you receive are tax free!
What you need to know before applying …
This plan is available to Canadian Chiropractic Association (CCA) members and their employees. To apply, you must be under age 60, working full time (at least 25 hours per week) and residing in Canada.
Medical evidence of good health is required when applying for benefits. You must therefore complete the Evidence of Good Health section on the Application Form. If more information is needed, you will be notified.
Plan Features
- Total Disability & Rehabilitation Benefits
- Premium Waiver
- Quarterly or Monthly Payment Options
Additional Features for CCA Members
- Partial Disability Benefit for income losses of 20% or more.
- Four Elimination Periods (also known as waiting periods) from which to choose: 30, 60, 90 or 120 days.
Optional Riders for CCA Members
- Own Occupation Rider to provide Total Disability Benefits if you can’t work at your regular occupation even if you’re working elsewhere.
- Cost of Living Adjustment Rider to protect your disability benefits from inflation.
Coverage Options
CCA Members can purchase units of $100 up to a monthly benefit of $7,500, depending on your income(Please refer to the CCA Income Ratio Guide ). There is a minimum purchase requirement of $500.
Note: The maximum coverage for which you are eligible will be reduced by any disability insurance in force or applied for under this plan or elsewhere. At the time of claim, the total monthly benefit you receive, when added to other disability benefits, may not exceed 100% of your taxable, or 80% of your nontaxable, pre-disability average monthly earned income.
Employees of CCA Members can purchase up to a monthly benefit of $2,500 , depending on your income.
Note: At the time of claim, your monthly benefit under this plan will be integrated with the Workplace Safety and Insurance Board (WSIB), Canada/Quebec Pension Plan, and any other government benefits for which you may be eligible. Your disability benefit, when added to other disability benefits, may not exceed 100% of your taxable or 80% of your non-taxable, pre-disability average monthly earned income.
Benefit Details
Coverage becomes effective ... on the first of the month following the approval of your application.
Benefit payments begin for CCA members ... after your chosen elimination period (or waiting period) has expired. You have four elimination periods from which to choose: 30, 60, 90 or 120 days. If you choose, for example, a 30-day elimination period, no benefits will be paid until you have been Totally Disabled for 30 consecutive days.
Benefits are payable to age 65 for accident and sickness. For disabilities beginning after age 63 but before age 68, benefits are payable for a maximum of 24 months. For disabilities occurring after age 68, benefits are payable for a maximum of 12 months or to age 70, whichever is longer.
Benefit payments begin for employees of members ... after your 120-day elimination period has expired (you must be Totally Disabled for 120 consecutive days before benefits will be paid). Benefits would then be payable for the lesser of 60 months or to age 65 for accident or sickness.
Coverage ends when ...
- you cease to be a member of the CCA or an employee of a member;
- you are no longer working at least 25 hours per week;
- you reach age 70 (CCA Members) or age 65 (employees), or earlier retirement;
- premiums are not paid;
- this plan is cancelled.
Rehabilitation Benefit. If you participate in a rehabilitation program, Total or Partial Disability benefits may be continued for the duration of the program.
Premium Waiver. Your disability premiums, including rider premiums, will be waived while you are receiving Total or Partial Disability benefit payments.
Definition of Total Disability
CCA Members will be considered Totally Disabled prior to age 65 if, as a result of an accident or sickness, you are unable to perform the essential duties of your regular occupation, are not working elsewhere (except as noted under the Own Occupational Rider) and are under the regular care of a physician. After age 65, Totally Disabled means you are unable to engage in any gainful employment and are under the regular care of a physician.
Employees of Members will be considered Totally Disabled for the first 24 months if, as the result of an accident or sickness, you are unable to perform the essential duties of your regular occupation, are not working elsewhere, and are under the care of a physician. After the first 24 months, Totally Disabled means you are unable to engage in any gainful employment for which you are reasonably suited by way of education, training or experience, and are under the regular care of a physician.
Definition of Partial Disability
Applies to CCA Members Only
You will be considered Partially Disabled prior to age 70 if, as the result of an accident or sickness, you are not Totally Disabled but have a loss of income of at least 20% and are either:
- unable to perform one or more of the important duties of your regular occupation; or
- engaged in another occupation.
Benefit payments begin after your chosen elimination period has expired. Benefits are payable to age 70. For disabilities beginning after age 63 but before age 65, benefits are payable for a maximum of 24 months (combined Partial and Total Disability benefits).
During Partial Disability, your monthly benefit is paid in the same proportion as your loss of income. For example, a 50% loss of income provides a monthly benefit payable of 50%.
Optional Riders
Available to CCA Members only
Own Occupation Rider. This rider provides you with Total Disability benefits if you are unable to perform the essential duties of your regular occupation as the result of an accident or illness even if you are working in another occupation. This rider terminates at age 65.
Cost of Living Adjustment (COLA) Rider. This rider increases your benefit payments once you have been Totally and/or Partially disabled for 12 consecutive months. Each year on the anniversary of your disability, your benefits are increased according to the Consumer Price Index (CPI) to a maximum of 5%. These annual inflation adjustments continue until you reach age 65 or recover.
Note: If the Own Occupation Rider is elected, COLA benefits will not be paid if you are Totally Disabled from your regular occupation but working elsewhere.
Income Ratio Guide
Applies to CCA Members Only The following chart indicates the amount of disability coverage you may apply for, based on income. Actual coverage is to be selected in multiples of $100 (minimum $500/maximum $7,500). Use chart for reference only.
*Net Income is gross income after expenses but before income tax.
Professional Overhead Expense Insurance
Electricity, rent, employee salaries, telephone. Who will pay your office expenses if you are sick or injured? Professional Overhead Expense Insurance is advantageous for anyone running a business with regular monthly expenses.
What you need to know before applying …
This plan is available to members of the Canadian Chiropractic Association (CCA). To apply, you must be under age 60, working full time (at least 25 hours per week) and residing in Canada. Medical evidence of good health is required when applying for benefits. You must therefore complete the Health Declaration section on the Application Form. If more information is needed, you will be notified.
You can purchase units of $100 up to a monthly benefit of $8,000. There is a minimum purchase requirement of $500.
Plan Features
- Covers monthly overhead expenses including rent, electricity, telephone, heat, water, laundry, depreciation, your employees’ wages or salaries, and other normal office expenses.
- Two Elimination Periods from which to choose: 14 days or 30 days.
- Premium Waiver.
Benefit Details
Coverage becomes effective … on the first of the month following the approval of your application.
Benefit payments begin ... after your chosen elimination period (or waiting period) has expired. You have two elimination periods from which to choose: 14 or 30 days. If you choose, for example, a 30-day elimination period, no benefits will be paid until you have been Totally Disabled for 30 consecutive days. Benefits would then be payable for a maximum of 18 months so long as you remain Totally Disabled.
Coverage ends when …
- you cease to be a member of the CCA;
- you are no longer working at least 25 hours per week;
- when you reach age 65, or earlier retirement;
- premiums are not paid;
- this plan is cancelled.
Premium Waiver. Your Professional Overhead Expense premiums will be waived while you are receiving disability benefit payments.
Expenses Not Covered
Your salary, fees, drawing account, or any other remuneration for yourself, any member of your profession or any person employed to perform the duties of your profession or occupation, and the cost of goods, merchandise of any nature, automobiles or implements.
Definition of Disability
You must be Totally Disabled to receive Professional Overhead Expense benefits. The definition of Total Disability is the same as for Long Term Disability under age 65. See page 4.
Additional Information
The Cost
Monthly Rates vary based on age and are subject to change as you enter a new age bracket.
Premiums are payable in advance on a monthly basis. You may pay using pre-authorized bank deduction, by credit card or by cheque. Rates shown do not include provincial sales tax, where applicable. Rates are reviewed on a yearly basis. You will be advised in advance of any necessary rate changes.
Next Steps
- Decide the amount of protection you require.
- Complete the Application for Insurance
- Indicate whether you want pre-authorized bank deduction or if you will be paying by cheque. If you select pre-authorized bank deduction, please include a blank cheque marked “VOID”.
- Return your application and VOID cheque (do not send money)
Once your application is approved you will receive a Certificate of Insurance detailing the coverage and the main policy provisions. Once you receive this document, you have 10 days to review your certificate. If you are not satisfied, simply return the certificate and any paid premiums will be returned to you.