Career Transition DI
Career Transition DI is a unique product designed specifically for executives and other white-collar employees who have lost their group LTD coverage because of outplacement and are entitled to severance payments.
Career Transition DI allows terminating employees to protect themselves against the potentially catastrophic financial consequences of a long-term and potentially career-ending illness or injury. It can provide peace of mind until the insured is re-employed and covered by a new group LTD plan, or has an insurable track record from self-employment that enables them to qualify for underwritten individual income replacement coverage.
Career Transition DI may be paid for by the employee, or by the employer. Recent court cases suggest that employers may have a legal obligation to continue all benefits for terminated employees, including disability coverage, for the full period of reasonable notice.
| FEATURE | DETAILS |
|---|---|
| Structure: | Monthly Benefits for 24 months for Temporary Total Disability (“TTD”), followed by (optional) lump sum for Permanent Total Disability (“PTD”). |
| Benefit Amounts: | TTD: Up to 75% of after-tax monthly insurable earnings. PTD: Up to 100 x TTD monthly benefit |
| Issue Ages: | 25 to 54 |
| Currencies: | CAD, USD |
| Policy Terms: | Up to length of severance period, or 1 year if longer. Minimum 6 months. |
| Benefit Start Date: | In the event of qualifying disability during the policy term, benefits begin 90 days after the end of the severance period. |
| Definition of Disability: | TTD: own occupation PTD: any reasonable occupation |
| Premium: | A single premium is paid at inception. If the insured becomes eligible for new coverage during the policy term, the policy may be cancelled and a refund equal to 50% of the pro-rated premium for the remaining term will be paid, subject to a minimum retained premium of $1,500.
There is also a $350 non-refundable policy fee. |
| Underwriting: | The insured must be eligible to receive a severance package from the former employer and must apply for coverage with 90 days of the last day at work.
An application must be completed, and we may request additional medical information (generally Attending Physician Statement only). A copy of the severance agreement must be provided, and we may request additional financial documentation. |
- Get a Quote – Please request a quote through our online submission form. Submit the signed quote, the completed application and a copy of the severance agreement. We will not consider an application without this.
- Complete an Application Form – The required application forms will be provided to you with the quote. Please print, complete, and have your client sign it before submitting.
- Scan and email the application, signed quote, and a copy (or draft copy if not finalized) of the severance agreement to info@hunmcc.com. This will ensure immediate processing. Originals are not required. Please keep them for your records. If you cannot scan the documents, please fax, or send a copy via Canada Post or courier to:Hunter McCorquodale
145 Wellington Street W
Suite 1200
Toronto, ON M5J 1H8
Fax: (416) 322-6846 - Include a copy of your current license and E&O insurance certificate with the application if you are not contracted with us. We will initiate contracting upon receipt of your first application.
IMPORTANT INFORMATION:
- DO NOT order any medical evidence. Hunter McCorquodale will obtain all requirements. We will advise you what requirements, if any, are being arranged after the initial underwriting review.
- There is no temporary insurance.
- If the application is approved, the administrator will advise you how to pay premium.