LONG TERM DISABILITY INSURANCE

This is an optional benefit available to firms that have our term life insurance. If you become totally disabled and unable to work for an extended period of time because of illness or injury, the long term disability (LTD) plan may help replace your earnings until you are able to return to work.

Schedule of Insurance

The firm chooses one of the following schedules for all eligible members and employees:

  1. If benefit is taxable (premiums are fully or partly paid by the employer), 75% of the first $11,668 of monthly earnings and 60% thereafter to a maximum benefit of $10,000 per month.
  2. If benefit is non-taxable (premiums are fully paid by the employee), 60% of the first $11,668 of monthly earnings and 50% thereafter to a maximum benefit of $10,000 per month.

The benefit is rounded to the nearest $50.

Benefits are payable following total disability for the period selected:

  1. A 30 or 90 day waiting period for partners and proprietors who are CAs and not eligible for employment insurance benefits. A partner who is not a CA may be extended the same coverage; please contact CAIPW.
  2. A 120 or 180 day waiting period for employees.

Evidence of Insurability

Amounts of long term disability insurance will be provided without evidence of insurability (medical questionnaire or tests) up to the following limits, based on the number of people at time of enrollment and every April 1 thereafter:

Non-Evidence Maximums by Firm Size

Firm Size

Non-Evidence Max
Less than 5 lives Nil
5 to 9 lives $2,000
10 to 24 lives $3,000
25 to 49 lives $4,000
50 lives and up $5,000


Once you have provided satisfactory evidence of insurability, further evidence will not be required for benefit changes of up to 10% in any policy year (April 1 to March 31). Increases in excess of 10% will be subject to evidence of insurability.

Medical information will be required if CAIPW is not notified within 31 days of a change.

Definition of Disability

“Total disability” or “totally disabled” means that during the elimination period and during the remainder of the period for which benefits are payable, as a result of injury or sickness occurring while insured under the plan,

  • for CAs, the inability to perform the essential duties of your normal occupation, to age 65.
  • for employees, the inability to perform the normal duties of your occupation during the first 24 months of total disability and thereafter, the complete inability to engage in any gainful occupation for which you are reasonably qualified by training, education or experience.

You will not be considered totally disabled during any period in which you are engaged in any other gainful occupation, or are not under the regular care of a licensed physician, surgeon or psychiatrist.

Benefit Period

LTD benefits are payable until the earliest of recovery, age 65, or death. For CAs whose disability occurs after age 63 but prior to age 69, benefits are payable for the earlier of 24 months or age 69.
For employees whose disability occurs after age 63 but prior to age 65, benefits are payable for the earlier of 24 months or age 65.

If you die while receiving benefits, a 3 month lump sum payment will be made to your eligible survivor.

Benefit Payable

If your total monthly earnings from all sources during disability exceed 100% of your net after tax monthly earnings prior to total disability, the benefit will be reduced by the amount of such excess.

Total monthly income from all sources will include:

  • any monthly income payable under the benefit;
  • any monthly earnings or payments from the employer or partnership (excluding return of capital and/or sale of ownership interest);
  • any disability benefits payable under the Canada/Quebec Pension Plan excluding benefits for dependents or any cost of living increase;
  • any disability benefits payable under any Workers Compensation Act or similar legislation, or any other government plan;
  • any disability benefits payable under any other association, group, or franchise insurance plans;
  • any income payable from a group retirement or pension plan; or
  • damages for loss of income recovered from a third party arising out of the same circumstance that caused your disability.

Cost of Living Adjustment

Each April 1st, if you are receiving benefits, the monthly benefit will be adjusted for inflation using the Consumer Price Index, subject to a maximum increase of 5% per year.

A firm can increase the adjustment up to the lesser of CPI or 10%, for an additional 15% of the current premium schedule.

Partial Disability

You will be considered partially disabled if, due to sickness or injury, you are only able to perform some of the normal duties of your regular occupation or are engaged in and receiving earned income from any other gainful occupation, providing:

  1. if you are a CA, your earnings are reduced at least 20% from their pre-disability level as a result of the disability;
  2. if you are an employee, you are totally disabled throughout your waiting period.

You must be under the regular care of a licensed physician, surgeon or psychiatrist.

Partial Disability Benefit

Benefits for partial disability will equal the full insured benefit reduced by the ratio of earnings received while disabled to earnings prior to disability, adjusted to reflect changes in the Consumer Price Index.

Payments begin after the chosen waiting period has expired.

Recurrent Disability

If total disability from the same or related cause recurs within 6 months of return to full-time work, benefit payments will resume without the usual waiting period.

Premium Waiver for Disability

If you become entitled to total disability benefits, premiums will be waived retroactively after six months of total disability.

Termination Provision

Insurance under this section will automatically terminate at age 65 for employees, and age 69 for CAs. If you leave your employer, the insurance terminates, on the date you stop working.

Exclusions

You must be under the care of a qualified physician and receiving appropriate treatment. No payment will be made for any period of disability resulting from self-inflicted injury or sickness, insurrection or war or active participation in a criminal offence.

Pre-Existing Conditions

Benefits will not be payable for disabilities directly or indirectly due to or resulting from an injury, disease, illness, pregnancy or mental disorder for which you visited or consulted a physician, took tests or received treatment within 90 days prior to the date on which you became insured under the CAIPW plan. This exclusion will not apply to a disability commencing more than 12 months after you become insured.

Important Note

We recommend that a firm choose the waiting period that integrates with their short term disability arrangements. If arrangements do not presently exist for continuing all or part of an employee’s salary during the initial months of disability, the firm may wish to consider one of the following suggestions.

  • Establish a self-insured short term salary continuance plan which qualifies for registration with the Employment Insurance office (EI) for a reduced contribution rate. Information on qualifying and applying for the EI premium reduction can be obtained from the EI office.
  • The firm’s employees claim short term disability benefits from EI, which are currently payable from the 3rd to the 17th week of disability.

Monthly Premium Rates per $100 of Benefit

Partners and Proprietors who are CAs.
 

30 Day Waiting Period

90 Day Waiting Period

Age at April 1

Male

Female

Male

Female
Under 30
$.81
$1.37
$.43
$.77
30 - 39
1.02
1.58
.56
.89
40 - 44
1.53
2.09
.95
1.28
45 - 49
1.90
2.81
1.53
1.87
50 - 54
3.32
3.62
2.47
2.65
55 - 64
3.72
3.72
2.81
2.81
65 & over
4.17
4.17
3.32
3.32

Employees (120 days Waiting Period)

 

CAs

Employees

Age at April 1

Male

Female

Male

Female
Under 30 $  .39 $  .68 $  .43 $  .77
30-39 .51 .81 .56 .89
40-44 .85 1.14 .96 1.29
45-49 1.45 1.76 1.57 1.92
50-54 2.30 2.47 2.55 2.72
55-64 2.65 2.65 3.40 3.40
65 & over 3.07 3.07    

Employees (180 days Waiting Period)
 

CAs

Employees

Age at April 1

Male

Female

Male

Female
Under 30 $  .34 $  .60 $  .39 $  .68
30-39 .43 .68 .46 .77
40-44 .77 1.02 .87 1.17
45-49 1.37 1.62 1.48 1.79
50-54 2.22 2.38 2.47 2.65
55-64 2.47 2.47 3.23 3.23
65 & over 2.89 2.89    

Optional COLA (higher guaranteed indexing up 10%) - add 15% to the above rates.
Long term disability benefits are underwritten by Great-West Life, Policy number 335694.