INDIVIDUAL DISABILITY INCOME - ISSUE AND PARTICIPATION LIMITS CHART (09/2016)

Transcription

1 INDIVIDUAL DISABILITY INCOME - ISSUE AND PARTICIPATION LIMITS CHART (09/2016) Issue and Participation limits (Class 4A): Class 4A Age ID Issue Limit* Combo Limit Participation Non-taxable $25,000** $35,000 $35, $10,000 non-combo $15,000 combo $25, $8,000 $10,000 $10,000 non-combo $25,000 combo (amount above $15,000 must be group) $8,000 non-combo $10,000 combo (amount above $8,000 must be group) $25,000** $35,000 $50,000*** $50,000 Taxable $10,000 non-combo $15,000 combo $25, $8,000 $10,000 $10,000 non-combo $25,000 combo (amount above $15,000 must be group) $8,000 non-combo $10,000 combo (amount above $8,000 must be group) Issue and Participation limits for Wage Loss Replacement Plans and Established Professionals Program (Class 4A): Class 4A Age ID Issue Limit* Combo Limit Participation Non-taxable Taxable $25,000** $35,000 $35, $23,000 $32,200 $32, $21,000 $29,400 $29, $19,000 $26,600 $26, $17,000 $25,000 $25, $15,000 $25,000 $25, $13,000 $18,200 $18, $11,000 $15,400 $15, $9,000 $12,600 $12, $25,000** $35,000 $50,000*** $50, $23,000 $32,200 $32, $21,000 $29,400 $29, $19,000 $26,600 $26, $17,000 $25,000 $25, $15,000 $25,000 $25, $13,000 $18,200 $18, $11,000 $15,400 $15, $9,000 $12,600 $12,600 * Maximum amount of individual disability insurance that RBC Life Insurance Company (RBC Life) will issue. ** Individual consideration will be given to requests to issue up to and including $35,000 per month for otherwise standard cases subject to an established need based on full review of all financial documentation for the last two complete tax years, including full evaluation of unearned income and net worth. In these cases, the maximum Participation Limit will continue to be $35,000 non-taxable or $50,000 taxable, as per the above chart. *** Total coverage available through RBC Life for multi-life cases associated with Advanced Underwriting only, otherwise Participation Limit only. RBC Life Insurance Company / Trademarks of Royal Bank of Canada. Used under licence Page 1

2 Issue and Participation limits (Classes 3A to B): Classes 3A to B Age ID Issue & Participation Limit 3A 2A A B $15, $6, $6, $7, $3, $3, $5, $2, $2,500 Foundation or Bridge contract only $3, $1, $1,500 Foundation or Bridge contract only Page 2

3 GUIDELINES FOR THE USE OF ISSUE LIMITS CHART (09/2016): The Issue Limits represent the total amount of indi vidual coverage available. All other indi vidual coverage in force (or pending) is to be included in the calculation. Employment Insurance (EI) programming is required when an applicant is eligible for (covered by) EI. Column A represents the total amount of coverage available with a 30 or 60 day elimination period (EP) when programming with Employment Insurance (EI) is required. Column B represents the amount of coverage available in addition to the amount in Column A when programming with EI is required. This amount is subject to a 90. Column C represents the total amount available when all coverage has a 90 and the applicant is eligible for EI. Column C also represents the total amount of coverage available when programming with EI is not required. Column D replaces Column C in situations where Combo Limits apply (see Combo Limits Guidelines for more information). The amount in Column D is the figure used to calculate the A707GIO group offset. However, the total amount of the individual portion of coverage must not exceed the amount shown in Column C. If the applicant is eligible for (covered by) EI and all coverage applied for has an EP of 90 days or greater, the individual coverage amount available is the amount shown in Column C. If the applicant is eligible for (covered by) EI and the coverage applied for is with a 30 or 60 day EP, the base amount available is the amount shown in Column A and the additional amount shown in Column B is available with a 90. For example: At an income of $200,000: Client applies for $8,550 with a 60 day EP, is eligible for Combo Limits and EI programming is required; has no other individual coverage in force, but does have group coverage to be continued. The coverage would be adjusted to $7,375 with a 60 day EP (Column A) and $1,175 with a 90 day EP (Column B) for a total of $8,550 (Column C). The group offset amount would be $150 ($8,700 - $8,550; Column D minus Column C). Interpolation of Issue Limits It is appropriate to interpolate within the ranges provided on the chart. Each income band reflects a range of income, but provides only one benefit amount for this range. Thus, if an individual's income falls in the higher part of this range, it is appropriate to move the benefit amount applied for closer to the amount offered in the next income range. Page 3

4 Example: For the income range of $100,000 to $109,999, the non-taxable issue limit offered is $5,200/month. At $110,000 we offer $5,550/month; we would expect the range to be interpolated as follows (rounded to the nearest $25 after interpolation): Formula: ($5,550 - $5,200) / 10 = $35 x each thousand dollars of income over $100,000 Income Non-taxable issue limit $100,000 $5,200 $103,000 $5,300 $106,000 $5,400 $109,000 $5,525 Notes: 1. The maximum individual disability coverage RBC Life will issue and participate in varies by occupational class and age. Please consult the Issue & Participation Limits Chart on page E The maximum amount of Combo Limits coverage we will issue (combination of RBC Life group LTD and RBC Life individual disability) is $35,000 (non-taxable or taxable), except if the individual coverage being applied for is taxable (Wage Loss Replacement Plan) and part of a multi-life Guaranteed Standard Issue (also known as GSI ) group. If the individual coverage being applied for with us is taxable and part of a multi-life GSI group, we will issue up to $50,000 (combination of RBC Life group LTD and RBC Life individual coverage). However, the maximum amount of individual coverage we will issue is limited to the Issue Limits shown on page E The maximum amount of coverage we will participate in (combination of RBC Life and any other company s individual, group or association coverage) is $35,000 non-taxable and $50,000 taxable. Page 4

5 ISSUE LIMITS - 09/2016 subject to the Issue and Participation Limits, see page 1 Non-Taxable Taxable (Wage Loss Replacement Plan) Annual Net Earned Income Column A Column B Column C Column D Column C Column D with 30 or 60 day EP in addition to Column A and is subject to a 90 Total amount available with 90 No EI Combo Limits* Covered or not by EI (EI Second Payor) Combo Limits* 12,000-12, ,000-13, ,000-14, ,050 1,050 15,000-15, ,050 1,050 1,100 1,100 16,000-17, ,125 1,125 1,200 1,200 18,000-19, ,225 1,225 1,325 1,325 20,000-21, ,325 1,325 1,500 1,500 22,000-23, ,450 1,450 1,650 1,650 24,000-25, ,575 1,575 1,825 1,825 26,000-27, ,025 1,675 1,675 1,925 1,925 28,000-29, ,100 1,800 1,800 2,100 2,100 30,000-32, ,175 1,900 1,900 2,250 2,250 33,000-35, ,300 2,075 2,075 2,475 2,475 36,000-37, ,400 2,250 2,250 2,650 2,650 38,000-39, ,475 2,375 2,375 2,825 2,825 40,000-43, ,525 2,500 2,500 2,975 2,975 44,000-47,999 1,150 1,550 2,700 2,700 3,250 3,250 48,000-51,999 1,375 1,525 2,900 2,900 3,525 3,525 52,000-55,999 1,575 1,500 3,075 3,075 3,850 3,850 56,000-59,999 1,775 1,500 3,275 3,275 4,125 4,125 60,000-64,999 2,000 1,475 3,475 3,475 4,375 4,375 65,000-69,999 2,275 1,450 3,725 3,725 4,750 4,750 70,000-74,999 2,500 1,450 3,950 3,950 5,100 5,100 75,000-79,999 2,750 1,425 4,175 4,175 5,425 5,425 80,000-89,999 3,000 1,400 4,400 4,400 5,750 5,750 90,000-99,999 3,450 1,375 4,825 4,825 6,425 6, , ,999 3,850 1,350 5,200 5,200 7,075 7, , ,999 4,225 1,325 5,550 5,550 7,725 7, , ,999 4,625 1,300 5,925 5,925 8,350 8, , ,999 5,025 1,275 6,300 6,300 8,975 8, , ,999 5,375 1,250 6,625 6,625 9,625 9, , ,999 5,725 1,250 6,975 6,975 10,200 10,200 See page 3 for information on how to use this table. *Some restrictions apply. Please consult the "Guidelines for the use of Combo Limits" section. Page 5

6 ISSUE LIMITS - 09/2016 subject to the Issue and Participation Limits, see page 1 Non-Taxable Taxable (Wage Loss Replacement Plan) Annual Net Earned Income Column A Column B Column C Column D Column C Column D with 30 or 60 day EP in addition to Column A and is subject to a 90 Total amount available with 90 No EI Combo Limits* Covered or not by EI (EI Second Payor) Combo Limits* 160, ,999 6,075 1,225 7,300 7,300 10,775 10, , ,999 6,400 1,200 7,600 7,600 11,375 11, , ,999 6,725 1,200 7,925 7,925 11,950 12, , ,999 7,050 1,200 8,250 8,300 12,525 13, , ,999 7,375 1,175 8,550 8,700 13,075 13, , ,999 7,650 1,175 8,825 9,025 13,600 14, , ,999 7,950 1,175 9,125 9,375 14,125 15, , ,999 8,275 1,150 9,425 9,750 14,700 16, , ,999 8,550 1,150 9,700 10,100 15,225 16, , ,999 8,850 1,150 10,000 10,475 15,725 17, , ,999 9,125 1,150 10,275 10,825 16,250 18, , ,999 9,425 1,125 10,550 11,200 16,750 18, , ,999 9,700 1,125 10,825 11,550 17,250 19, , ,999 9,950 1,125 11,075 11,900 17,725 20, , ,999 10,225 1,125 11,350 12,275 18,225 21, , ,999 10,475 1,125 11,600 12,625 18,675 21, , ,999 10,750 1,125 11,875 13,000 19,175 22, , ,999 10,975 1,125 12,100 13,350 19,600 22, , ,999 11,225 1,100 12,325 13,725 20,025 23, , ,999 11,475 1,100 12,575 14,075 20,475 24, , ,999 11,725 1,100 12,825 14,450 20,850 24, , ,999 11,925 1,100 13,025 14,800 21,300 25, , ,999 12,150 1,100 13,250 15,175 21,725 26, , ,999 12,350 1,100 13,450 15,525 22,075 26, , ,999 12,575 1,100 13,675 15,900 22,450 27, , ,999 12,825 1,100 13,925 16,250 22,900 28, , ,999 13,075 1,100 14,175 16,625 23,350 29, , ,999 13,325 1,100 14,425 16,975 23,825 29, , ,999 13,575 1,075 14,650 17,350 24,275 30, , ,999 13,825 1,075 14,900 17,700 24,700 31, , ,999 14,075 1,075 15,150 18,050 25,125 31, , ,999 14,325 1,075 15,400 18,425 25,575 32,500 See page 3 for information on how to use this table. *Some restrictions apply. Please consult the "Guidelines for the use of Combo Limits" section. Page 6

7 ISSUE LIMITS - 09/2016 subject to the Issue and Participation Limits, see page 1 Non-Taxable Taxable (Wage Loss Replacement Plan) Annual Net Earned Income Column A Column B Column C Column D Column C Column D with 30 or 60 day EP in addition to Column A and is subject to a 90 Total amount available with 90 No EI Combo Limits* Covered or not by EI (EI Second Payor) Combo Limits* 480, ,999 14,550 1,075 15,625 18,775 26,025 33, , ,999 14,775 1,075 15,850 19,150 26,450 33, , ,999 14,975 1,075 16,050 19,500 26,850 34, , ,999 15,250 1,075 16,325 19,875 27,350 35, , ,999 15,500 1,075 16,575 20,225 27,800 35, , ,999 15,750 1,075 16,825 20,550 28,325 36, , ,999 16,000 1,075 17,075 20,900 28,775 36, , ,999 16,250 1,075 17,325 21,250 29,225 37, , ,999 16,500 1,075 17,575 21,575 29,675 37, , ,999 16,725 1,075 17,800 21,925 30,150 38, , ,999 16,975 1,075 18,050 22,275 30,575 38, , ,999 17,200 1,075 18,275 22,600 31,050 39, , ,999 17,450 1,075 18,525 22,950 31,500 40, , ,999 17,675 1,075 18,750 23,275 31,950 40, , ,999 17,925 1,075 19,000 23,625 32,400 41, , ,999 18,175 1,075 19,250 23,975 32,850 42, , ,999 18,425 1,050 19,475 24,300 33,275 42, , ,999 18,650 1,050 19,700 24,650 33,725 43, , ,999 18,900 1,050 19,950 25,000 34,175 44, , ,999 19,125 1,050 20,175 25,325 34,600 44, , ,999 19,350 1,050 20,400 25,675 35,000 45, , ,999 19,575 1,050 20,625 26,000 35,000 46, , ,999 19,825 1,050 20,875 26,350 35,000 46, , ,999 20,050 1,050 21,100 26,700 35,000 47, , ,999 20,250 1,050 21,300 27,025 35,000 48, , ,999 20,475 1,050 21,525 27,375 35,000 48, , ,999 20,700 1,050 21,750 27,725 35,000 49, , ,999 20,925 1,050 21,975 27,800 35,000 50, , ,999 21,175 1,050 22,225 27,900 35,000 50, , ,999 21,400 1,050 22,450 28,025 35,000 50, , ,999 21,600 1,050 22,650 28,100 35,000 50, , ,999 21,825 1,050 22,875 28,225 35,000 50, , ,999 22,025 1,050 23,075 28,275 35,000 50,000 See page 3 for information on how to use this table. *Some restrictions apply. Please consult the "Guidelines for the use of Combo Limits" section. Page 7

8 ISSUE LIMITS - 09/2016 subject to the Issue and Participation Limits, see page 1 Non-Taxable Taxable (Wage Loss Replacement Plan) Annual Net Earned Income Column A Column B Column C Column D Column C Column D with 30 or 60 day EP in addition to Column A and is subject to a 90 Total amount available with 90 No EI Combo Limits* Covered or not by EI (EI Second Payor) Combo Limits* 810, ,999 22,250 1,050 23,300 28,375 35,000 50, , ,999 22,475 1,050 23,525 28,450 35,000 50, , ,999 22,650 1,050 23,700 28,525 35,000 50, , ,999 22,875 1,050 23,925 28,625 35,000 50, , ,999 23,050 1,050 24,100 28,675 35,000 50, , ,999 23,275 1,050 24,325 28,750 35,000 50, , ,999 23,500 1,050 24,550 28,850 35,000 50, , ,999 23,700 1,050 24,750 28,875 35,000 50, , ,999 23,925 1,050 24,975 28,950 35,000 50, , ,999 24,100 1,050 25,150 29,000 35,000 50, , ,999 24,325 1,050 25,375 29,100 35,000 50, , ,999 24,525 1,050 25,575 29,150 35,000 50, , ,999 24,700 1,050 25,750 29,200 35,000 50, , ,999 24,900 1,050 25,950 29,275 35,000 50, , ,999 25,100 1,050 26,150 29,325 35,000 50, , ,999 25,300 1,050 26,350 29,375 35,000 50, , ,999 25,500 1,050 26,550 29,425 35,000 50, , ,999 25,675 1,050 26,725 29,475 35,000 50, , ,999 25,875 1,050 26,925 29,550 35,000 50,000 1,000,000-1,099,999 26,050 1,050 27,100 29,575 35,000 50,000 1,100,000-1,199,999 27,900 1,050 28,950 31,275 35,000 50,000 1,200,000-1,299,999 29,700 1,050 30,750 32,950 35,000 50,000 1,300,000-1,399,999 31,525 1,025 32,550 34,650 35,000 50,000 1,400,000-1,499,999 33,325 1,025 34,350 35,000 35,000 50,000 1,500,000 & Over 33,975 1,025 35,000 35,000 35,000 50,000 See page 3 for information on how to use this table. *Some restrictions apply. Please consult the "Guidelines for the use of Combo Limits section. Page 8