Income Protection
Explain the definition of regular occupation
•Insured is totally disabled if unable to perform the important duties of his/her occupation due to sickness or injury
•The insured is not working in another gainful occupation
Describe Business Loan Protector
Simply put, business owner receive benefits to pay their business loan when they are too sick or hurt to work (total disability reg occ). While they are totally disabled, they are reimbursed for their covered monthly loan expense for 24 months. Reimbursement of your covered monthly loan expense starts after the elimination period.
What is Critical Illness Recovery Plan?
If the insured meets the specific definition of one of the covered critical illnesses defined in the policy andcompletes the survival period defined in the policy, we will pay a lump sum critical illness benefit
The survival period before the critical illness benefit is payable is usually 30 days, unless otherwise specified in the definition of the critical illness.
Aortic Surgery Loss of Independent Existence
Aplastic Anemia Loss of Limbs
Bacterial Meningitis Loss of Speech
Benign Brain Tumour Major Organ Failure on Waiting List
Blindness Major Organ Transplant
Cancer (Life Threatening) Motor Neuron Disease
Coma Multiple Sclerosis
Coronary Artery Bypass Surgery Occupational HIV Infection
Deafness Paralysis
Dementia, including Alzheimer's Disease Parkinson Disease and Specified Atypical Parkinsonian Disorders
Heart Attack Severe Burns
Heart Valve Replacement or Repair Stroke
Kidney Failure
How much of a saving represents Term/CI Bundle?
Insured saves the policy fee on the Term policy = 40$
How do we underwrite dual occupations?
If an applicant has 2 or more occupations and incomes, we will classify at the lower occupation class if the applicant works at that occupation more than an average of 4 hours per week.
Which occupations & occupation classes are eligible to be upgraded?
Occupations with an asterisk in the schedule are eligible to tbe upgraded by the following rules :
1. Class 3A to 4A, 3 years in occupation and 75K income for the past 2 calendar years.
2. Class 2A to 3A, 3 years in occupation and 70K income for the past 2 calendar years.
3. Class A to 2A, 3 years in occupation and 65K income for the past 2 calendar years.
4. Class B will not be upgraded.
Any eligible occupation can be upgraded by ONE class only.
Describe Business Overhead Expense
The Expense Reimbursement Protection, also known as Business Overhead Expense coverage, is an expense reimbursement coverage that covers those fixed monthly expense incurred by the business that are ordinary and necessary in the operation of the business or profession.
•Rent or lease on building
•Employee wages
•Utilities
•Leased equipment
•Principal and interest on equipment loans
•Taxes
•Benefit costs
Other ongoing fixed expenses
•Payable after 15 or 30 days
•Payable for 15 or 24 months
•Non Cancellable & Guaranteed Renewable for Life
•Up to $20,000 per month
•Total, Partial, Presumptive, Survivor, Waiver
•Accumulation and Extension of Benefits
•Residual, Future Covered Expense Option
I am 60 and will retire soon. I have a $75,000 T75NC CI policy. What is the maximum daily amount of LTC coverage available for conversion?
110$ per day or monthly equivalent
I am a lawyer with 5 years of experience and an annual income of $185,000 for the past 3 years. Which discount on which product am I eligible for
20% apllicable to the Professional Series under Established Professional Program
Which 2 health problems are "a red flag" for underwriting DI? And why?
Mental health problems
MSK trouble especially back pain
Most common causes of claims
Explain Perk allowance
The unique circumstances of self-employed occupations and those who are commissioned sales persons create a greater loss of income when disability strikes than for other applicants. For this reason, a perk allowance is added to the insurable income of these individuals. The perk allowance is 20% of the net earned self-employed income or the net commission income, to a maximum of $40,000 annually.
What is the target market for Disability Buy Sell
The target market for disability buy – sell would be:
-Corporations and partnerships with 2 to 10 principals
-Between the ages of 18 and 60
-Occupation classes from 2A to 4A
The following are not eligible for this type of solution:
-Public corporations, husband-wife combinations, parent-child combinations and non arms-length relationships
-Any business that has not been in operation for at least 3 years prior to application
-Any partnership where the partners have not been associated for at least 3 years prior to application
-Associates owning less than 5% or more than 90% of the shares
-Any business that does not have a net worth of at least $50,000
-Any applicant who does not have an income of at least $12,000
-Any applicant who is not active in the business
-Silent partners
-One-person buy-sells
-Any risk where we are asked to participate with another insurer
-Class A & B risks
What is LTC?
Long Term Care Insurance pays a daily benefit if the client :
•Loses the ability to care for him/herself due to cognitive impairment or a condition that results in the inability to perform two (2) or more activities of daily living identified in the policy, and
•Requires the services of a Long Term Care Facility or professional assistance at home.
I am in my final year of vet school. Which discount am I eligible for?
Studend Savings Program 15% max 3500$ without income justification
How do we include dividends in the calculation of earned income for business owners?
Dividends are not counted as earned income because we underwrite using the corporation’s annual profit or loss. The payment of a dividend can be viewed as the release of all or part of the accumulated profits to the shareholders. For this reason, dividends may or may not reflect income generated in a single business year. Including dividends as part of the applicant’s earned income, as well as the profits, has the effect of double-counting the company’s profits.
Define own occ and the eligible occupations
considers an individual totally disabled if unable, due to sickness or injury, to perform the important duties of his or her occupation. Under this definition, the insured is eligible to receive benefits while they work in another gainful occupation, provided they are disabled from their own occupation. This benefit is available to age 55 to the following selected class 4A professionals: accountants (CA, CMA, CGA only), actuaries, architects, attorneys, chiropodists, professional engineers, lawyers, notaries (Quebec), optometrists, osteopaths, pharmacists, physicians and surgeons (including acupuncturists and psychiatrists), podiatrists and psychologists with a PhD.
Summarize what is Wage Loss Replacement PLan
An arrangement made between an employer and 2 or more employees to provide individual income protection for the employees.
Name the 4 criteria to be eligible for conversion from DI to LTC
Clients 55 to 65
Policy in force for more than 2 years
Clients in good health
Clients who have not had a disability during the past 12 months
What is the discount % under MSO and what is the main advantage vs SSP
10% premium savings
Simplified underwriting
Which aspect of underwriting is specifically important for CI?
Family history
Explain residual and partial disability definition
Re$idual Definitions:
1. Your loss of earnings is equal to at least 20% of your prior earnings while you are engaged in your occupation, and;
2.You are under the regular and personal care of a physician
=LOSS OF EARNING$
ParTial Definitions:
1. You are not able to perform
→One or more important duties of your occupation
→The regular daily duties of your occupation at least one-half the time usually required, and;
2.You are under the regular and personal care of a physician
= LOSS OF TIME OR DUTIES
Sometimes a client suffers an accident or illness that leaves him or her less than totally disabled but unable to earn a full income. Some policies allow policy owners to exercise a residual disability benefit to cover just this possibility. With residual disability, the client who experiences at least a 20% drop in earnings due to a less-than-total disability, a residual disability or an accident or sickness, will be entitled to a benefit after meeting the elimination period. The monthly benefit amount is based on the percentage of lost income.
With the partial disability benefit, the client who experiences a loss of time or duties due to a less than total disability will be eligible for a flat percentage of their monthly benefit (maximum 50%). The client does not have to prove a loss of earnings to qualify for this benefit and he or she be entitled to a benefit after meeting the elimination period.
Give me a high level descrption of Guarantee Standard Issue (GSI
Unique individual income protection plan to 10+ employees that can complement Group Benefits Insurance.
Explain how CI and DI coverage are complementary and why I should consider owning both ?
Can cover different illnesses AND
DI = loss of income
CI = additional costs
•Pay off the mortgage or cover payments for a pre-selected period of time
•Create a more adaptable home after physical disabilities
•Consider travelling abroad to get immediate specialized medical attention
•Allow a spouse to take some time away from work to assist in recovery
•Could take some time away to help the recovery process
Additional non medical costs
Parking, cutting the grass, snow removal, house cleaning, grocery shopping, meal preparation, child care.
I am a branch manager earning 175K/year. My group LTD is topped at $5,000/month. I might want to become an investment advisor in a few years although no real plan yet. What could be the ideal solution? And is there a discount applicable
Combo limits
Max amount
Group Offset
15% Select Discount
What type of underwrting is done when exercising FIO?
Financial underwriting