DEFINITION:Canada Life Long Term Disability Policy: A type of insurance policy offered by Canada Life that provides financial protection to individuals who are unable to work due to a long-term disability. This policy offers a portion of the insured person’s income as a monthly benefit, helping to support their living expenses during their period of disability.
FAQs:
1. What is the purpose of a Canada Life Long Term Disability Policy?
A Canada Life Long Term Disability Policy is designed to provide financial assistance to individuals who are unable to work due to a long-term disability. It ensures that the insured person can maintain their standard of living by receiving a monthly benefit to cover their living expenses.
2. How long does the coverage last?
The coverage provided by Canada Life Long Term Disability Policy can last until the insured person reaches the age of 65 or until they are able to return to work, whichever comes first. The specific terms and conditions may vary depending on the policy.
3. What does the policy cover?
This policy covers a portion of the insured person’s income in the form of a monthly benefit. It helps to replace their lost earnings due to the inability to work caused by a long-term disability. The policy may also include additional benefits such as rehabilitation services or vocational training to assist in the insured person’s return to work.
4. How much does the policy pay?
The amount of the monthly benefit paid by the Canada Life Long Term Disability Policy is determined by the insured person’s income at the time of disability. Typically, the benefit amount ranges from 60-70% of the individual’s pre-disability income. However, there may be certain limits or caps on the benefit amount, depending on the specific policy terms.
5. Is there a waiting period before benefits are payable?
Yes, there is usually a waiting period, also known as an elimination period, before the benefits from the Canada Life Long Term Disability Policy become payable. This waiting period can vary but commonly ranges from 90 to 180 days. During this period, the insured person may have to rely on other sources of income or savings.
6. Do pre-existing conditions affect the coverage?
Pre-existing conditions may have an impact on the coverage under the Canada Life Long Term Disability Policy. Some policies may exclude coverage for disabilities related to pre-existing conditions, while others may offer coverage with specific limitations or waiting periods. It is important to carefully review the policy terms regarding pre-existing conditions before purchasing the policy.
7. Can the policy be canceled or terminated?
The Canada Life Long Term Disability Policy can generally be canceled or terminated at any time by the policyholder. However, it is important to understand the cancellation and termination provisions of the policy, as well as any potential consequences or refund policies. It is advisable to consult with a Canada Life representative or insurance professional before making any decisions regarding cancellation or termination.