How to Apply Disability Insurance 1. Choose the amount of coverage that best suits your needs. Protect your most valuable asset… your ability to earn an income 2. Complete, sign and mail the enclosed Application in the postage-paid envelope provided. Please be sure to choose the payment option you prefer. Imagine the financial hardship you would face if you were suddenly struck by a disability due to an accident or illness and were unable to work. How could you afford to pay your bills, your mortgage and everything else that keeps you and your family afloat? CPSA Disability Income Insurance can help you pay for these important day-to-day living expenses. It provides a monthly benefit to help replace your income. Money-Back Guarantee You can apply right now with confidence because once your Certificate is issued, you’ll have 10 days to review it. If, for any reason, you wish to cancel, return your Certificate within that time for a full refund of any premium paid and the Certificate will be deemed to be void from the Effective Date. DISABILITY INSURANCE NOTICE ON EXCHANGE OF INFORMATION Information regarding your insurability will be treated as confidential. The Insurer or its reinsurers may, however, make a brief report on it to MIB, Inc., formerly known as the Medical Information Bureau, a non-profit membership organization of insurance companies which operates an insurance information exchange on behalf of its members. If you apply to another MIB member company for life or health insurance coverage, or a claim for benefits is submitted to such a company, MIB, upon request, will supply such company with the information about you in its file. Upon receipt of a request from you, MIB will arrange disclosure of any information in your file. Please contact MIB at 416-597-0590. If you question the accuracy of the information in MIB’s file, you may contact MIB and seek a correction. The address of MIB’s information office is: 330 University Avenue, Suite 501, Toronto, Ontario M5G 1R7. NOTICE ON PRIVACY AND CONFIDENTIALITY The specific and detailed information requested on the application form is required to process the application. To protect the confidentiality of this information, Manulife Financial will establish a "financial services file" from which this information will be used to process the application, offer and administer services and process claims. Access to this file will be restricted to those Manulife Financial employees, mandataries, administrators or agents who are responsible for the assessment of risk (underwriting), marketing and administration of services and the investigation of claims, and to any other person you authorize or as authorized by law. These people, organizations and service providers may be in jurisdictions outside Canada, and subject to the laws of those foreign jurisdictions. Your consent to the use of personal information to offer you products and services is optional, and if you wish to discontinue such use, you may write to Manulife Financial at the address shown below. Your file is secured in our offices or those of our administrator or agent. You may request to review the personal information it contains and make corrections by writing to: Privacy Officer, Affinity Markets, Manulife Financial, P.O. Box 4213, Stn A, Toronto, ON M5W 5M3. This brochure is not a contract, but only an outline of the coverage, designed to explain the benefits and conditions of the insurance plan. The insurance document, which you will receive when you join the insurance plan, will govern as to the specific details. Please read it carefully. If you have any questions, call us toll-free at 1 800 482.0758 Underwritten by: Monday to Friday, 8:00 a.m. to 8:00 p.m., ET or e-mail us at [email protected] or visit us on the web at: manulife.com/CPSA Manulife, Manulife Financial, Manulife Financial For Your Future logo and the block design are service marks and trademarks of The Manufacturers Life Insurance Company and are used by it and its affiliates under license. CPSA Insurance plans are underwritten by The Manufacturers Life Insurance Company (Manulife Financial). COVERAGE BUILT WITH YOU IN MIND Available exclusively to CPSA Members. 12.2019 CPSA.DI.BRO-E (09/2012) Disability Insurance Am I eligible? You must meet four simple criteria: • You must be a CPSA Member in good standing and a resident of Canada • You must be employed in the field of sales or marketing • You must be actively at work, at least 25 hours per week • You must be under age 60 How much coverage can I purchase? Coverage can be purchased in units of $100 monthly benefits, from $500 to $7,500. The amount of monthly benefit you qualify for is a percentage of your monthly income – up to 70% of your earnings after deduction of business expenses and before the deduction of any income taxes. See the Income Ratio Guide in this brochure. When does coverage begin? Coverage starts after you have been totally disabled for a certain number of consecutive days, called the Waiting Period.1 You can choose a waiting period of 60 or 119 days. What is the difference between totally disabled and partially disabled? Total disability means that an illness or injury has left you without gainful employment and you cannot engage in your regular occupation during the first two years of your disability. Partial disability means that your disability has left you with at least a 20% loss in earned income, while still able to perform one or more of your regular work duties or else engaged in another occupation. In both cases, you must also be under the care of a physician during this period. How do I qualify for Total Disability Benefits? Before benefits will be paid, a doctor’s diagnosis must confirm the disability, and you must complete the waiting period. Total disability means that an illness or injury has left you unable to engage in your regular occupation during the first two years of your disability, and you are not gainfully employed. If you continue to be unable to perform the essential duties of your occupation beyond the two-year period, or to perform the duties of any occupation for which you are reasonably qualified, your benefits will continue until age 65. How do I qualify for Residual Disability Benefits? If you become Partially Disabled immediately following a period of Total Disability, you will receive a Residual Disability benefit for as long as you remain Partially Disabled. Residual Disability benefits are payable and calculated from the date after you are no longer receiving a monthly benefit due to Total Disability. Benefits are payable as long as you are under age 65, under the regular care of a physician and you experience a loss of income of at least 20% or more. You must provide satisfactory evidence of continuing disability and reduced income. Under the Residual Disability Benefit, payments for part of a month shall be calculated at the rate of 1/30th of the benefit payable multiplied by the number of days you were Partial Disabled during the month. Income Ratio Guide Will my benefits adjust for cost-of-living increases? You can add the optional Cost of Living Adjustment (COLA) Rider to your basic coverage. After the first year of benefits, and on each anniversary of your disability, your monthly benefit will be increased in accordance with the Consumer Price Index, to a maximum of 5%. age 65 when you cease to work a regular full-time job retirement when you leave the sales/marketing profession expiration of your CPSA membership What else do I need to know? • If, following a period during which you received benefits, you participate in an approved rehabilitation program, you will continue to receive benefits • If you suffer a recurrence of disability within 180 days of your return to full-time work, you will resume receiving benefits immediately • Premiums will be waived after you have received benefits for six months, and premiums paid during that period will be refunded on a pro-rata basis • You may continue your insurance if you begin paying your premiums within 31 days of recovery Are there any exclusions or limitations? • You are excluded from benefits if your disability is the result of war, insurrection, rebellion, or participation in a riot; intentionally self-inflicted injuries; normal pregnancy and/or childbirth • Your total post-disability income, including benefits, must not exceed 85% of your pre-disability income.2 Therefore, your benefit can be reduced by sources of income such as CPP/QPP, Workers’ Compensation and benefits from other insurance plans NON-TAXABLE MONTHLY DISABILITY BENEFIT Percentage of Net Earned Income $ 15,000 40,001 65,001 80,001 100,001 200,001 300,001 – – – – – – – $ 40,000 65,000 80,000 100,000 200,000 300,000 500,000 70% 65% 60% 55% 40% 35% 30% * Net Earned Income is your income from any and all occupations after deducting business expenses but before income tax. When does coverage end? • • • • • ANNUAL NET EARNED INCOME* How to Choose Your Monthly Disability Benefit If you were a 25-year-old non-smoker with an Annual Net Earned Income (see definition) of $24,000, using the Income Ratio Guide, you would be eligible for $1,400 of monthly benefit. Your annual premium (for benefits beginning on the 61 ST day of disability) would be $130.20. $1,400 = 14 units of monthly benefit 70% of $24,000 $100 = $1,400/month 12 months 14 units x $9.30/unit = $130.20 Note: Your premium per unit is based on your age, your Waiting Period (the period of time during which you must be totally disabled) before benefits begin, and whether you are a smoker or a non-smoker. ANNUAL PREMIUM PER $100 OF MONTHLY BENEFIT Premium Rates Income Disability Protection BENEFITS BEGIN ON THE 61ST DAY BENEFITS BEGIN ON THE 120TH DAY Age Non-Smoker Smoker Non-Smoker Smoker COLA Rider** Under age 26 $ 9.30 $ 10.69 $ 4.00 $ 4.61 $ 1.31 26 to 30 11.68 13.40 5.73 6.60 1.86 31 to 35 15.17 17.44 8.42 9.68 2.56 36 to 40 21.05 24.19 12.51 14.38 3.96 41 to 45 27.27 31.36 19.04 21.87 6.05 46 to 50 35.92 41.32 26.56 30.57 8.70 51 to 55 44.53 51.18 36.72 42.21 11.59 56 to 60 65.15 74.91 51.97 59.74 12.29 61 to 65 67.01 77.06 54.54 62.73 8.61 ** The COLA Premium is the same, whether you select benefits to begin on the 61st or 120 th day. 1 If while completing the elimination period you suffer two successive periods of total disability separated by less than 30 consecutive days of full-time employment, due to the same or a related cause, the two periods shall be considered one period of total disability for the purposes of satisfying your elimination period. 2 Pre-disability income means your Net Earned Income less the amount of tax payable on such income, determined on the basis of your province of residence and personal exemptions claimed in your most recent personal income tax return. Notes: To be eligible for non-smoker rates, you must meet Manulife Financial’s health standards and must not have used any tobacco products, or tobacco cessation products, for a period of at least 12 consecutive months immediately preceding the date you apply. Members over age 59 may not apply for disability income insurance. The rates over 60 are for renewal only. The above rates are subject to retail sales tax of 8% if you are a resident of Ontario or 9% if you are a resident of Quebec. The retail sales tax percentage is current at time of printing. Rates vary based on age and change as you enter a new age bracket. Rates are subject to change without notice.