RBC Insurance raised the limits on its future income option, effective July 30, 2008. The future income option allows disability insurance policyholders to increase their disability insurance monthly benefit without providing evidence of insurability. The increase applies to all occupation classes. New applicants qualifying for a 4A classification can now add a future income option of $25,000 per month, a significant increase from the previous ceiling of $15,000 per month.
Lorne’s comments: RBC Insurance’s future income option is a great way for professionals and those in other occupation categories to enhance their coverage without providing evidence of insurability.
To exercise this option, the applicant must still provide proof of income. This option would be a good fit, for example, for young interns in good health but making limited income. They can easily protect their current income while adding the future income option to protect their future earnings.
Rosey – on the disability side most insurance companies do not pay a full return of premium usually it’s between 50% and 70% if a claim is not made exceeding 20% of the premium paid.
The insurance company charges an extra premium to help fund the extra potential payout.
Does the return of premium give you all your money back. If so how can the ins. co. make money? Must be a catch
RBC does not offer a disability plan with the return of premium. Canada Life, Manulife Financial and SSQ all offer disability plans with return of premium. The option differs from company to company we are happy to provide more details.
Does RBC offer a disability policy with return of premium and if not who does? Ty