Disability Insurance: A Business Insurance Option

Even a small company can bring big benefits
The Business Insurance Option
can protect the medical insurability
of your business partners.

RBC Insurance offers a Business Insurance Option, which is very similar to the Future Income Option under its traditional disability insurance policy.

The business insurance option is a rider available on RBC’s Disability Insurance buy-sell policies. The rider is truly affordable, providing the insured(s) with the ability to obtain additional protection (without a medical) in the event that the value of their business increases.

Similar to the Future Income Option, the Business Insurance Option protects the medical insurability of the partners in the business. An example of this would be if one of the partners developed a health issue like diabetes but, at the same time, his or her business increased in value. Obtaining extra coverage could very well be a challenge under normal circumstances. However, thanks to the Business Insurance Option, the insured can increase his or her personal income protection under the policy at each “option date” (which means every second policy anniversary date).

  • The insurance can be purchased up to 18% of the maximum option amount available.
  • Financial evidence of insurability is required, but the insured will not have to provide any medical evidence with these option dates in place.
  • When the insured exercises the available option, the additional premium is based on his or her current age rather than his or her initial application age.
  • The option amount is for the same type of coverage and terms that are available as part of the original policy.

For more details on Business Disability Insurance or traditional disability insurance in Canada, please contact us at 1-866-899-4849 or visit our Disability Insurance Quotes Page.

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