New York Finance

Sep 22 2017

Disability Insurance – RBC Insurance #disability #insurance, #disability #income #protection #insurance, #rbc #insurance, #royal #bank #of #canada, #canadian


Disability Insurance

You may apply for disability insurance if you:

  • Meet the age requirements of the policy:
    • Age 18-60 for The Professional Series . The Foundation Series™ and Bridge Series policies
    • Age 18-64 for The Fundamental™ Series policy (illness coverage) and age 18-69 (injury coverage)
    • Age 18-55 for RBC Simplified ® Disability Insurance
    • Age 18-55 for the Retirement Protector policy
  • Are a Canadian citizen or permanent resident/landed immigrant

Typically, yes. When purchasing disability insurance, medical questions and exams are usually required, the extent of which depends on your age and the amount of insurance you request when you apply.

If you apply for RBC Simplified ® Disability Insurance, there are just a few basic pre-qualifying questions and no medical exam.

We encourage you to apply for coverage even if you aren’t sure you can qualify. If you are not eligible for a traditional disability plan, you may be eligible to apply for RBC Simplified ® Disability Insurance, which only requires answers to a few basic pre-qualifying questions.

Yes, he or she may apply for coverage under his or her own policy, provided your partner meets the eligibility requirements of the policy.

Coverage Details

While the Canada Pension Plan (CPP) and Quebec Pension Plan (QPP) do include disability coverage, there are considerable limitations to the benefits provided by these plans. For example, for the Canada Pension Plan:

  • For 2013, the maximum amount you can receive from the disability benefit each month is $1,212.90 (5). This amount is considerably less than what you could receive through one of our disability insurance plans. For example, through The Professional Series ® policy, some individuals can qualify for as much as $25,000 per month, depending on their occupation, pre-disability income and other factors.
  • To qualify for the CPP disability benefit, you must sustain a severe and prolonged mental or physical disability and be unable to work at any occupation (5). With a disability insurance plan from RBC Insurance, you may be able to receive benefits under a less stringent definition of disability.

For more information:

This answer depends on your employer-sponsored disability plan, so examine it carefully and know what it covers. Typically, an employer-sponsored plan will end when your employment ends. One of the advantages of a disability insurance policy from RBC Insurance is that you can take it with you if you leave your job.

Here are some things to look at for your employer-sponsored plan:

  • How much of your income will your employer-sponsored disability plan replace? Will you be caught short?
  • Are you covered for illness as well as injury?
  • Are you only covered for accidents on the job, or are you protected 24/7?
  • Does your plan provide valuable return to work services?
  • How does your plan define a disability?

Once you know the answers to these questions, you may find that you need additional coverage.

The probability of incurring a 90-day or longer total disability prior to age 65 (1) may surprise you:

What’s more, when a disability lasts longer than 90 days, the length of that disability averages between 2.1 and 3.2 years for those age 55 and younger (2) .

No one can predict an injury or illness, yet after one arises you may have difficulty obtaining disability insurance. The best time to purchase disability insurance is while you are healthy.

Your disability benefits should allow you and your family to continue to live comfortably, as though you were still able to work full-time. First, total up your monthly “fixed living expenses” such as food, housing, transportation, utilities and other miscellaneous expenses. Subtract from that amount any income you’ll receive from other sources during a disability—for example, from investments you may have, property you rent out and other disability insurance coverage. The amount by which your expenses exceed income during disability is the amount you need. Bear in mind, though, that any disability insurance plan will only replace a portion of your income.

Disability insurance isn’t a “one size fits all” purchase. Different people have unique circumstances, needs and budgets. That’s why we offer such a wide range of policies with a variety of options. Compare our plans side-by-side:

You must meet the plan requirements for eligibility, including having the policy in force and satisfying the elimination period.

Definitions of disability can vary from plan to plan; your policy will contain complete information about eligibility, limitations and exclusions.

The elimination period is the number of days between the onset of a disability and the day you begin receiving benefits. Most of our plans offer you a choice of elimination periods ranging from 30 days to 730 days. RBC Simplified ® Disability Insurance has a 90-day elimination period.

Yes. Typically, benefits are not paid for disabilities due to* (the following is a summary of exclusions only):

  • An act or accident of war
  • Normal pregnancy or childbirth (complications of pregnancy or childbirth are covered)

In addition, the policies won’t pay a benefit for any period during which you are incarcerated.

*The information above is intended as a summary only. Other limitations may apply depending on the policy. Your policy will contain complete details on terms and conditions, including benefits and exclusions.


You will pay premiums through the term of your policy.

This answer depends on the policy. Some plans offer a choice of guaranteed level premiums for the life of the contract and step rate premiums (for age 35 and under), which allow you to pay less while you’re getting your business or career off the ground. With other policies, RBC Insurance does reserve the right to increase premiums. However, we cannot change your premiums unless we do so for an entire group of policyholders sharing similar characteristics.

A Waiver of Premium benefit is included in every one of our disability insurance plans at no extra cost. In most policies, this provision takes effect after 90 days of disability and any premiums you paid during the 90 days are refunded back to you.


Our goal is to make the claims process as easy as possible. Just call 1-877-519-9501. An RBC Insurance representative will send you a claim form and guide you through the claims process.

Take the Next Step – Contact Us Today

Your most valuable asset is your ability to earn an income. Disability insurance can help protect the lifestyle your income affords—and provide valuable services to help you return to work. Call today to apply or to discuss your needs with a licensed RBC Insurance advisor.

1) 1985 Commissioners Individual Disability Table A

2) 1985 Commissioners Individual Disability Table A: If the disability lasts longer than 90 days, the average length will be: 2.1 years for age 25, 2.5 years for age 30, 2.8 years for age 35, 3.1 years for age 40, 3.2 years for age 45, 3.1 years for age 50, 2.6 years for age 55, 1.6 years for age 60.

3) Certain conditions must be met for benefits to be payable. Your policy will provide complete details.

4) Provided you satisfy the pre-qualifying questions.

6) If you are self-employed, income means your share (proportionate to your ownership interest) of the income or loss of the business net of all business expenses except income taxes. If you are an incorporated business owner, you may also include any wages, salary, fees or commissions which the incorporated business paid to you as an employee of the business.

Get a Quote

Need basic disability insurance? Want to top-up your group coverage? Get a quick quote for RBC Simplified ® Disability Insurance!

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