RBC is one of the leading companies in providing long term disability insurance in Canada. Sometimes, the company may stop your long term disability payments or deny the claim from the onset. This is not a phenomenon peculiar to RBC and many times, the company’s action could be in good faith. You need to understand the circumstances in which your claim will be denied or payments stopped. This will help you to avoid actions that may lead the company to stop payments; help you to know when you need to take a further action and avoid surprises at a critical time when you are suffering from disability.
What is RBC Long-Term Disability Insurance?
RBC long-term disability insurance is a plan designed to protect you financially by paying a portion of your salary when you cannot work due to disability or sickness. Your benefits are based on the amount of income that you earned before you got disabled. RBC may pay you disability benefits even when you work while disabled. You do not have to stop working altogether for you to receive disability payments. Your employer usually pays your premiums together with those of your fellow employees under group insurance. You may also take RBC disability insurance and pay the premiums personally.
Please click here to better understand your options in making a claim against RBC.
Benefits under RBC Long Term Disability Insurance
The amount of benefit that you will be eligible to receive will be the least of either:
• 75 percent of the pretax monthly earnings before you got disabled minus all direct deductible income.
• If the monthly benefit is taxable, you will receive 85% of your pretax earnings before disability minus all direct and indirect deductible income.
• If the monthly benefit is non-taxable, you will receive 85% of your post-tax monthly earnings before you got disabled minus all direct and indirect deductible income.
You will only start receiving your benefits when 120 days elapse after you got disabled or when your short term disability benefits end, if applicable. The duration for which you receive disability benefits depends on your age at the time when you become disabled. If you get disabled while below the age of 64 years, you will receive benefits until you attain the age of 65 years. If you get disabled when you are between the age of 64 and 65 years, you will receive the benefits for one year.
RBC usually provides the following additional benefits:
- Rehabilitation and return to work benefits which is usually 10 percent of your monthly earnings before disability or $1000 whichever is lower.
- Monthly dependent care expense benefit of $350 per dependent or a total of $1000 whichever is lower. This benefit is available while you are participating in RBC rehabilitation program.
RBC Disability Insurance Quote
If you are thinking about how to protect your income from disability, you should consider disability insurance. RBC allows you to get a disability insurance quote so that you can make a decision. A quote is neither an offer nor a contract. It will only give you the estimate of the premiums you will be required to pay if you decide to buy the insurance. Getting a quote gives you an opportunity to compare the plans offered by different insurance companies and settle on the one that is best suitable to your needs. You can get a RBC disability quote online by just answering some questions.
RBC May Stop Long Term Disability Payments
The RBC benefits booklet provides that your coverage will end and payments stopped at the earliest of the following:
- the date your policy is cancelled;
- the date you cease to be in an eligible group;
- the date your group ceases to be covered;
- when you cease to be in employment except where you are covered under leave of absence or layoff provisions; or
- the date you attain the age of 65 years- the company may allow you to receive benefits till you attain the age of 70 years.
Where your employer terminates you without notice, RBC coverage will continue until the expiry of the statutory notice period. Customer reviews demonstrate that your payments may be stopped in circumstances that leave you wondering whether the decision is justified. In many cases, you may not be at fault. A denial may be as a result of bureaucracy designed to capitalize on your investment and even refuse to pay you.
When to Contact a Life or Disability Claim Lawyer
In the course of making your insurance claim, you may need the services of a lawyer especially when your claim is denied or payments stopped. An insurance claim lawyer will advise you on the best action to take. If you take too long to seek legal advice, your claim may be barred due to the statutory limitation of time, meaning that you will not be allowed to file a court case even if it turns out later that your benefits were terminated or denied unfairly.
As we have demonstrated, RBC life and disability insurance could be very helpful to you and your family. However, there may be challenges when you are claiming benefits under your policy. You should therefore strictly adhere to the terms of the policy and be ready to take appropriate steps to protect your rights when the need arises.
