|
Disability income protection during career transition
While loss of income due to accident or illness is a critical component of any financial plan, persons with little or no earned income cannot normally purchase disability income coverage. Insurers argue that they have no insurable interest because they have no earnings on which to gauge coverage.
Bridging LTD* is a unique product developed by Norfolk to provide disability income protection for individuals who are:
- in transition
- currently without a regular income or working at a reduced income
- have at least three years of post secondary education or industry training.
Coverage is available for a maximum period of 12 months, beginning at any time up to six months from the date the salary was lost or reduced.
How Bridging LTD works
- If you become disabled, your monthly benefits begin after an elimination period of 60 days.
- During the first two years of disability, you receive 50% of your prior salary to a maximum benefit of $10,000 per month.
- If you are employed part time, your benefit would be 50% of the amount of salary you have lost.
- After you have received benefits for 24 months, you could receive a final lump sum payment equal to three times your pre-termination salary, up to a maximum of $180,000. Six times your pre-termination salary is available in some instances.
*Some restrictions may apply.
|
