Frequently Asked Questions
- I already have life insurance. Do I really need more insurance?
- I also have disability coverage. Isn't that enough?
- My premiums are low now, but will they increase in the future?
- What accidents are covered?
- Do my claims for additional hospital benefits have to be made at the same time as my claim for the lump-sum benefit under the Critical Accident Recovery Plan Plus?
- Will I have to pay taxes on any of the benefits I might receive under the Plan?
| 1. | I already have life insurance. Do I really need more insurance? |
Quite possibly. While life insurance is an important part of your overall financial plan, it does not provide benefits if you survive an accident but are unable to return to work. The Critical Accident Recovery Plan Plus provides a "living benefit" to help you and your family deal with the financial challenges to which a serious accidental injury can give rise.
| 2. | I also have disability coverage. Isn't that enough? |
Not necessarily. Disability coverage is also important, but it does not provide a lump-sum payment. Most disability plans provide a reduced monthly benefit, usually no more than 70% of your income before the disability, and may continue for only a limited time.
The Critical Accident Recovery Plan Plus can provide a lump-sum, tax-free benefit in addition to any disability coverage you may have. It can help with major expenses associated with critical accidents such as -
- Re-engineering your home
- Moving to a more convenient location
- Reduced earnings at a new job
- Major medical expenses for treatment abroad
With a lump-sum payment from the Critical Accident Recovery Plan Plus to spend any way you wish, you can use your disability coverage to take care of day-to-day living expenses and still have money for your recovery.
| 3. | My premiums are low now, but will they increase in the future? |
Your premiums are guaranteed to remain the same unless they change for all group certificate holders. Critical Accident Recovery Plan Plus benefits will be reduced by 50% at age 65 and coverage ceases at age 75.
| 4. | What injuries are covered? |
The 23 eligible injuries resulting from an accident and the list of 13 eligible broken bones can be found in the Summary of Insurance Provisions or the Certificate of Insurance. Injuries range from loss of hearing to more serious injuries such as paralysis and brain damage.
| 5. | Do my claims for additional hospital benefits have to be made at the same time as my claim for the lump-sum benefit under the Critical Accident Recovery Plan Plus? |
No. The additional hospital benefits of $200 a day (per day spent in a Canadian hospital, up to a total of $73,000) can be claimed for any hospital stay that is the result of an accident, not just in conjunction with a major accident. The additional hospital benefits can also be claimed for each hospital stay due to an accident, up to a total of $73,000.
| 6. | Will I have to pay taxes on any of the benefits I might receive under the Plan? |
No. All payments under the Critical Accident Recovery Plan Plus are tax-free under existing Canadian income tax laws.
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