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DISABILITY INSURANCE

Advisor’s Guide to Venture Series®

THE MANUFACTURERS LIFE INSURANCE COMPANY

Table of contents

Plan highlights .....................................................................................................3

Marketing overview ............................................................................................4

Plan design ...........................................................................................................5

Plan details ...........................................................................................................6

Pre-screening .................................................................................................... 6

Occupation classes ........................................................................................... 6

Maximum issue limits ....................................................................................... 6

Minimum policy size ......................................................................................... 6

Modal factors ................................................................................................... 7

Policy fee .......................................................................................................... 7

Total disability ................................................................................................... 7

Regular occupation period ................................................................................ 7

Regular care of physician .................................................................................. 7

Elimination Period (EP) ...................................................................................... 7

Benefit Period (BP) ............................................................................................ 8

Non-cancellable, guaranteed renewable to age 65 ........................................... 8

Assumed total disability .................................................................................... 8

Automatic Coverage Enhancements (ACE)........................................................ 8

Recurrent disability ........................................................................................... 9

Vocational rehabilitation benefit ....................................................................... 9

Sale of business benefit .................................................................................... 9

Future Care Option ......................................................................................... 10

Waiver of premium while disabled .................................................................. 10

Integration of benefits (classes 2A, A and B only) ............................................ 10

Non-occupational disability ............................................................................. 11

Cosmetic or donor transplant surgery ............................................................. 11

Exclusions ....................................................................................................... 11

Tax-free benefits ............................................................................................. 11

Special marketing programs .............................................................................12

Qualified business owners .............................................................................. 12

Farm owners .................................................................................................. 12

New business owners ..................................................................................... 12

Grad Advantage Program (GAP) ..................................................................... 13

Permanent part-time workers ......................................................................... 13

Working from home ....................................................................................... 13

Riders ..................................................................................................................14

Additional Insurance Rider (AIR) ...................................................................... 14

Cost of Living Adjustment Rider (COLA 5%) ................................................... 15

Health Protection Rider (HPR) – standard and enhanced .................................. 15

Own Occupation Rider (OOR) ......................................................................... 16

Pensionguard Rider ......................................................................................... 17

Partial Disability Rider (PDR) ............................................................................ 17

Extended Partial Disability Rider (PDR65) ......................................................... 17

Residual Disability Rider .................................................................................. 18

Premium Refund Rider (PRR) ........................................................................... 18

ADVISOR’S GUIDE TO VENTURE SERIES 3

Plan Highlights

Target Markets

■■ Designed for a wide spectrum of occupations

■■ Appeals especially to cost conscious consumers

■■ Special programs available for students and new grads in

select professions, new business owners, farm owners and

part-time workers

■■ Premium discounts available to qualified business owners

Venture Series at a Glance

■■ Non-cancellable, guaranteed renewable to age 65

■■ ‘Regular occ’ definition of total disability for five years

– Disability means inability to perform substantial duties of

regular occupation and not working elsewhere

– After this, benefits depend on inability to perform any

reasonable occupation

– Regular occupation period can often be extended to

age 65

■■ Optional partial or residual disability riders

– Regular Partial Disability Rider – pays 50% for up to

12 months

– Extended Partial Disability Rider – extends partial

benefits to age 65

– Residual Disability Rider – provides benefits

proportionate to income loss

■■ Automatic Coverage Enhancements of 3% annually

■■ Recurrent Disability – benefits resume immediately if

disability recurs within six months

■■ Assumed total disability benefits begin immediately after

a severe loss

■■ Sale of business benefit

■■ Rehabilitation benefits during job retraining

■■ Waiver of premium during disability

■■ Accumulation of days of disability (total plus residual or

partial if included) if separated by 12 months or less in

order to satisfy the Elimination Period (EP) (six months for

classes 2A, A and B)

■■ The Future Care Option provides the flexibility and ease of

changing all or part of the disability insurance coverage to

a Manulife long term care protection plan

■■ No integration with government benefits for classes 4S,

4A and 3A

■■ Liberal integration of benefits provision for classes

2A, A and B

■■ Occupation upgrades for select business owners

and employees

4 ADVISOR’S GUIDE TO VENTURE SERIES

Marketing Overview

The ability to earn an income is the single most valuable

asset of any individual during their working years. Yet many

Canadians overlook the need for income replacement

insurance in their financial plans.

Others may assume that the traditional safety nets such

as employer/government benefits or personal savings are

enough to see them through. However, individual income

replacement insurance is the only protection that is both

comprehensive and portable, and provides a source of

income that can be counted on during a period of otherwise

complete uncertainty.

To convey the need for disability insurance,

three key questions should be addressed

What are the chances of becoming disabled?

This depends on your client’s age, sex, occupation class

and the chosen Elimination Period. The supplementary

calculations page of the illustration software shows the

percentages for your client.

How long will the disability last?

This also depends on the age and EP. Since a longer EP will

screen out less severe disabilities, the average length of

disability is longer when the EP is longer. For the standard

90-day EP, the average length of disabilities is about 2.5

years at younger ages and nearly five years at older ages.

How much do I stand to lose?

You can address this in “value-driven” terms like maintaining

standard of living, independence and dignity. Or you can

show clients the potential benefit amounts in dollars. The

supplementary calculations page of the illustration software

shows total potential benefit amounts depending on when

the disability occurs.

The Venture Series provides cost-effective coverage to a

wide range of occupations. The basic plan provides total

disability benefits, with Residual or Partial Disability Riders

also available.

The main markets for the Venture Series are established small

business and franchise owners and their employees. Since

entrepreneurs have historically shown a very high ‘return to

work’ motivation, Venture includes a built-in pricing discount

for qualified business owners to recognize the improved risk.

The Venture Series can also be offered to new business

owners, farm owners and part-time workers. Please refer

to pages 12 and 13 for special product features and

underwriting rules for such clients.

We offer other disability insurance products to address

different needs or markets.

■■ Proguard Series provides value-added income replacement

coverage for professionals and business executives

■■ ExpenseComp reimburses office overhead expenses for

professionals and eligible small business owners

■■ Buy-Sell Plus provides funding for a disability buy-out

■■ Personal Accident Disability plans provide flexible accident

coverage with optional sickness protection. It is most

commonly sold to self-employed, skilled trades people,

truckers and most other occupations that may not qualify

for traditional disability plans

Manulife also offers a comprehensive portfolio of

critical illness, life insurance and investment products to

help meet the financial planning needs of your clients.


Plan Design

The Venture Series offers quality income replacement

coverage at an affordable cost to a broad cross-section of

employed and self-employed Canadians. The Venture Series

provides 24-hour protection against injury or sickness, on a

NON-CANCELLABLE, GUARANTEED RENEWABLE basis.

The basic Venture Series plan provides limited Regular

Occupation coverage, followed by cost-effective Reasonable

Occupation coverage. This means that for up to five years

(or the Benefit Period if less), we consider clients totally

disabled if they cannot work at their former occupation, as

long as they are not actually working in a new occupation.

For the balance of the Benefit Period, total disability means

the inability to do any job for which they either are or may

‘reasonably’ become suited. (By this, we mean that, for

example, a bookkeeper would not be expected to become

a janitor.) We offer an extension of the Regular Occupation

Period to age 65 as an optional benefit. We also offer

residual or partial disability benefits as optional riders.

We even offer an Own Occupation Rider designed for

specialized professionals.

The Venture Series has many flexible features so you can

design an income replacement plan that meets your clients’

coverage needs and financial circumstances. For instance,

to help control costs you might consider lengthening

the Elimination Period, keeping in mind that your clients

would then have to wait longer before becoming entitled

to benefits. Similarly, choosing a short Benefit Period will

bring down the price, but your clients will not be protected

against a long-term disability such as permanent paralysis.

You can enhance the product with exceptional optional

benefits like our Health Protection and Premium Refund

Riders, plus traditional Disability Insurance (DI) Riders like

Cost of Living Adjustment (COLA) and Additional Insurance

Rider (AIR) (guaranteed medical insurability).

And when your clients choose Venture Series they’re not

only helping to protect themselves today, they’re preparing

themselves for the long term, with the Future Care Option.

This great feature gives your eligible clients the opportunity

to exchange all or part of their disability coverage for

a Manulife long term care protection plan – all with a

streamlined application process.

Why is the Future Care Option important to your clients?

It’s simple. As they get close to retirement, your clients’

need to protect their income diminishes and a new need

emerges – the need to protect their assets against the cost

of long term care.


Plan Details

Pre-screening

1. Is client’s age at nearest birthday from 18 to 60?

2. Can client read, speak and write in English or French?

3. Is client a Canadian citizen or a landed immigrant/

permanent resident living in Canada for at least

12 months? (See “Soon-to-be Canadians” guidelines

on Repsource.)

4. Is client a full-time Canadian resident?

5. Does client work full-time? (For part-time workers,

please refer to page 13.) For students in professional

programs, refer to the Grad Advantage Program under

Special Marketing Programs.

6. Is client’s insurable annual earned income at least

$15,000? ($12,000 for part-time workers). For new

business owners without an established income,

please refer to page 12. Students and new grads in

professional programs can qualify without the usual

income justification.

7. Note that clients who work a substantial portion of

the time from the home may be subject to individual

consideration. Please refer to the disability underwriting

guide for further details in such cases.

8. Is the client’s income steady and/or growing?

(An irregular income pattern may affect the availability

of the Residual Disability Rider)

Occupation Classes

4S, 4A, 3A, 2A, A, B

Maximum Issue Limits

The Monthly Benefit amount is determined from the

Maximum Monthly Benefit Table (the disability underwriting

guide or the illustration software) subject to the following

overall maximum limits:

Class Age Amount ($)

4S/4A 18–55 24,5001

4S/4A 56–60 12,000

3A 18–55 15,000

3A 56–60 8,000

2A 18–55 8,000

2A 56–60 5,000

A 18–55 6,000

A 56–60 4,000

B 18–55 4,000

B 56–60 3,000

1 Including any amount of Pensionguard coverage.

We offer $1,000 of coverage to eligible new business

owners (see page 12 for details).

Minimum Policy Size

$500 of Monthly Benefit or $500 of Annual Premium

(not including the Premium Refund Rider).


Modal Factors

■■ 0.53 semi-annual

■■ 0.09 monthly (automatic)

■■ 0.081 EBR (salary savings) – monthly list billing

sent to employer

■■ 0.268 quarterly

Policy Fee

The annual policy fee is $75.

Total Disability

The Venture Series provides total disability benefits equal to

the Monthly Benefit during the Regular Occupation Period if

clients are unable to perform the substantial duties of their

regular occupation, due to sickness or injury. They must not

be working at any occupation, and must also be under the

regular care of a physician.

After the Regular Occupation Period, total disability benefits

will continue to be payable for the remainder of the Benefit

Period if clients are unable to work at any occupation for

which they are or may reasonably become qualified based

on their training, experience or education. This means that

for example a bookkeeper would not be cut off disability

because he/she is able to perform the duties of a janitor.

Regular Occupation Period

■■ Five years (two years if the Benefit Period is two years)

■■ To age 65 – This option is only available when the basic

Benefit Period is to age 65. (Not available to occupation

class B*)

Regular Care of Physician

To be considered disabled, your client must be receiving

medical care that is appropriate in nature and frequency for

the condition. We may require psychiatric consultations for

claims that are related to a mental or nervous disorder or

that are contributed to by alcohol or drug use.

Elimination Period (EP)

■■ 30, 60, 90, 120, or 730 days (30-day EP not available

to farm owners; 30 and 60 day EP not available to new

business owners or part-time workers. Other restrictions

may apply for specific occupations. Refer to the occupation

schedule in the Underwriting guide for Disability Insurance)

The EP is the number of days of total disability that must

elapse before benefits are payable to your client. If a Partial

or Residual Disability Rider is attached to the policy, your

client can also use days of partial or residual disability to

satisfy the EP.

Your client can add together different periods of disability

as long as they’re due to the same or related causes and are

separated by 12 months or less (six months for 2A, A and B).


Benefit Period (BP)

■■ Two or five years, or to age 652

■■ New business owners are only eligible for a two-year

Benefit Period. See page 12 for a description of the new

business owner upgrade option.

The Benefit Period is the maximum length of time for which

disability benefits will be paid for any given claim. Benefits

end at age 65, except where a disability occurs near the

expiry date. If total disability occurs at age 63 or older,

benefits will continue beyond age 65 for the balance of

two years.

Non-cancellable, Guaranteed Renewable to

Age 65

Once the policy is issued and while premiums are being paid

on time:

■■ We cannot cancel the policy

■■ We cannot increase the rates

■■ We cannot make any changes to the terms of the contract;

and

■■ We cannot reduce benefits because of a change to a more

hazardous occupation

Clients may renew the policy after age 65 up to age 75 as

long as they continue to work on a full-time basis. After

age 65, the contract only covers total disability (including

any Own Occupation Rider). For disability after age 65, the

maximum Benefit Period will be two years. Premiums after

age 65 may change on any policy anniversary.

Assumed Total Disability

We consider clients totally disabled, regardless of ability to

work or the medical care required, if they suffer the total and

permanent loss of any of the following:

■■ Sight of both eyes

■■ Hearing of both ears

■■ Speech, or

■■ The use of both hands, or both feet, or a hand and a foot

For an assumed total disability, benefits will be payable

immediately from the date of loss and will continue for the

full Benefit Period.

Automatic Coverage Enhancements (ACE)

Automatic Coverage Enhancements are a built-in policy

feature, provided your client is age 50 or less and the

coverage is issued on a standard premium basis. With ACE,

the Monthly Benefit of the policy will automatically be

increased each year by 3% (compounded), as long as your

client is not disabled. This helps keep the benefit amount in

line with inflation-related increases in your client’s income.

Increases will continue to age 55 as described below.

We send a notice to the owner 60 days before the policy

anniversary, advising of the new Monthly Benefit and

corresponding increase in premium. The rates will be based

on your client’s attained age and the guaranteed rate scale in

effect when the policy was originally issued.

2 To age 65 not available to part-time workers. Other restrictions may apply for specific occupations. Refer to the occupation schedule in the Underwriting guide for Disability Insurance.


The owner can refuse up to four increases. If the owner

refuses four increases, ACE will be terminated. The client

would then need to submit evidence of insurability (medical

and financial) to reinstate this policy feature.

We require financial evidence to justify the increased

benefit level every third year. This evidence will be used

to determine your client’s eligibility for the next three year

period based on our published limits. In other words, the

financial evidence requested on the third anniversary will be

used to justify increases for years four, five and six. If your

client does not qualify financially, no increases will be made

in the following three years. The client will again be asked

for financial evidence after three years.

Your client may renew ACE every nine years with proof

of medical insurability. The client must still be medically

standard, not subject to any additional exclusions, and not

have switched from non-smoker to smoker status.

We suspend ACE during disability or if the total amount of

coverage in force reaches our maximum issue limit. After

disability ceases, the ACE catch-up feature allows your

client to purchase any increases that had previously been

financially underwritten.

If your client exercises the Future Care Option, partially

exchanging some disability coverage for long term care

protection, ACE will terminate.

Note that if you do not wish to have this feature included

in the policy, your client can opt out by initialing the

applicable section of the product page generated by the

illustration software.

Recurrent Disability

A recurrent disability is one that occurs within six months

of an earlier disability claim and results from the same

or related causes. In such cases, we consider the second

disability to be a continuation of the first. Benefits will

be payable from the date of the recurrence for up to the

balance of the Benefit Period.

If your client is off claim for at least six months, any

subsequent disability is considered a new disability. A new

Benefit Period will begin and the Elimination Period will

apply again.

Vocational Rehabilitation Benefit

We will consider a request by your client to participate in

an approved vocational rehabilitation program. Subject to

mutual agreement between both parties, Monthly Benefits

will not cease because of participation in this program.

In addition to continuing disability benefits during job

retraining, we may also agree to pay for the cost of

approved rehabilitation expenses. Such expenses may

include necessary office renovations, medical equipment, or

job retraining courses.

Sale of Business Benefit

For clients who own a business at the time of claim, we

provide this additional benefit if they are forced to sell it

because of long-term disability. We will reimburse transfer

expenses and legal fees up to the Monthly Benefit. The sale

of business must occur within three years of the onset of

disability, and total disability benefits must have been paid

for at least six months.


Future Care Option

The Future Care Option is included3 on Venture Series

coverages that have a to age 65 Benefit Period and a rating

equal to or less than 150%. The Future Care Option allows

your clients to exchange some or all of their Venture Series

coverage for long term care protection. Any Pensionguard

Rider amounts are also available for exchange.

Your client can exercise the Future Care Option as long

as they:

■■ Have not reached their 69th birthday

■■ Have coverage that has been in force for a minimum

of five years

■■ Haven’t received any disability benefits in the last five years

■■ Don’t have a claim pending, or an approved claim where

they are satisfying an Elimination Period, and

■■ Qualify for the exchange based on limited

underwriting evidence

When it’s time to make the exchange from disability

coverage to long term care coverage, your client simply

submits an application, which includes a brief questionnaire

to determine their eligibility. The amount of long term care

coverage they qualify for is based on their age at the time of

the exchange and the amount of disability coverage being

exchanged. Here’s an example:

Disability Monthly Benefit being exchanged ($)

Insured’s birthday Multiply the eligible disability Monthly Benefit amount by: (%)

Long term care Monthly Benefit (non facility and facility) ($)

3,000

On or before the insured’s 65th birthday5 50

3,000 disability Monthly Benefit × 50% = 1,500 for home care, 3,000 for facility care

After 65th birthday5 but before 69th birthday

253,000 of disability Monthly Benefit amount × 25% = 750 for home care, 1,500 for facility care

On or after 69th birthday 0 Not eligible to exercise the Future Care Option

Your client may be eligible for a full or partial exchange. If

a partial exchange is requested, a minimum of $1,000 of

disability coverage must be exchanged. As well, a minimum

of $500 of coverage must remain on the disability policy on

coverage #1. Once the exchange is made, any future ACE or

AIR increases terminate.

Waiver of Premium while Disabled

We will waive premiums4 after disability has continued for

90 days, or from the date benefits become payable if earlier.

The required premium payments made during this period will

also be refunded. Waiver will continue while disability lasts.

Integration of Benefits(classes 2A, A and B only)

Integration of benefits does not apply to classes 4S, 4A and

3A. For other clients, benefits payable under the Venture

Series are integrated with disability benefits received from

Workers’ Compensation or no-fault automobile insurance.

We will adjust benefit payments so that the amount

payable under the above plans, combined with your client’s

personal coverage, will not exceed 120% of the Venture

policy’s Monthly Benefit. However, the adjustment will in

no case reduce the benefit payments below 40% of the

Monthly Benefit.

3 For policies issued with exclusions, the underwriter may not approve the inclusion of the Future Care Option. Refer to the Underwriting guide for Disability Insurance for more information. 4 This provision waives premiums for the base plan and all riders. 5 By 65th birthday we mean the monthly anniversary of the policy date following the insured’s 65th birthday.


For example, consider a Venture policy with a Monthly

Benefit of $3,000. Your client becomes disabled and

Workers’ Compensation pays $2,000. Manulife would

pay the greater of (120% × $3,000 – $2,000) or

(40% × $3,000), which works out to $1,600 in this example.

We will not further reduce benefit payments if, during

a period of disability, there is an increase in the above

plans benefits.

Non-occupational Disability

The normal definition of total disability is related to the

ability to perform a person’s regular occupation. However, if

your client is unemployed or on leave or sabbatical when an

injury or sickness occurs, a total disability claim can still be

payable. Under this provision, disability will be determined

based on ability to perform the regular substantial activities

being performed prior to the onset of disability. Furthermore,

if your client was scheduled to return to work (e.g.,

sabbatical, maternity leave), the definition of disability would

change to the regular one as of that date.

For example: Jane Smith took a maternity leave from her

business. With two months remaining in her leave, she is

involved in a car accident. For the next two months, we

consider her totally disabled if she can’t perform the activities

she was previously doing – childcare for example. After the

two months, we would consider her totally disabled if she

can’t do the regular duties needed to run her business.

Cosmetic or Donor Transplant Surgery

After the policy has been in force for six months, we

consider any disability due to cosmetic or donor transplant

surgery to have been caused by sickness, and will pay

appropriate monthly disability benefits.

Exclusions

The policy does not pay benefits for conditions due to acts

of war (declared or undeclared), normal pregnancy, during

incarceration, or if we excluded the condition from the policy

during underwriting.

Tax-free Benefits

Disability benefit payments are free of personal taxes if the

premiums have been paid with after-tax dollars.


Special Marketing Programs

The Venture Series is designed for a wide range of

occupations, with the full spectrum of product features

available to most full-time employees. Some bonus

features or restrictions apply to other types of workers as

summarized below.

Qualified Business Owners

A qualified business owner is one who has been in business

for at least one full year, has at least a 20% ownership share,

and has at least $15,000 of insurable income. Farm owners

are in a special category (see below). The following special

features apply to qualified business owners:

■■ Premiums include a built-in discount (Tip: be sure to select

“Qualified Business Owner” in the Employment field of the

illustration software)

■■ Earned income can be “grossed-up” by 20% (to a

maximum of $40,000) to determine the available

Monthly Benefit

■■ One and two class occupation upgrades are available as

described in the disability underwriting guide

■■ Note that the Residual Disability Rider is not available to

class A business owners

Farm Owners

We classify all farmers with at least 20% ownership as 2A

risks. Certain features and options differ from the standard

plan as follows:

■■ Residual disability protection is not available

■■ Elimination Periods – 60, 90, 120, or 730 days

■■ Not eligible for qualified business owner discount

New business Owners

A new business owner is one who has operated their

business as a going concern for at least three months but

not more than 24 months, but has not yet established

adequate earned income. The following rules apply to new

business owners:

■■ $1,000 of Venture Series with a two-year benefit period is

available

■■ Elimination Period: 90, 120 or 730 days

■■ Available Riders: Additional Insurance Rider (AIR) and

Premium Refund Rider (PRR)

■■ Not eligible for qualified business owner discount

New Business Owner Upgrade Option –

Effective April 21, 2007(not available for class B)

When the Additional Insurance Rider (AIR) is included,

we will also add a New Business Owner Upgrade Option

amendment to the policy. This will allow clients to extend

their benefit period to age 65 without evidence of medical

insurability, provided they meet the following conditions:

■■ Available on the first three policy anniversaries, provided

they are eligible and applying for an AIR increase at

the time

■■ They must not be disabled at the time

■■ They must have worked at least 30 hours per week for at

least 10 months of the past year; and

■■ They must have worked away from home at least 75% of

the time over the past year


The client must notify us that they wish to exercise the

option and fill in the option form included with the policy

when it is issued. We will then process the change in benefit

period while processing the AIR increase in coverage. The

premium for the policy will be recalculated based on the

new benefit period and Qualified Business Owner rates (if

eligible). For the original coverage amount, we will use the

client’s original age.

The Premium Refund Rider (PRR) is also available to new

business owners. However, if you plan to use the new

business owner upgrade option, we recommend that you

do NOT include the refund rider at issue, but instead add it

when exercising the upgrade option. That way, the refund

amount would be based on the higher premium.

Grad Advantage Program (GAP)

Students and new graduates in professional programs may

be eligible for the Grad Advantage Program (GAP). Under

this program, students and new grad clients have the

advantage of:

■■ Issue limits not requiring the usual income justification

■■ Special Additional Insurance Rider guidelines

– Higher Additional Insurance Rider limits

– One-time, non-contractual Graduate Option Date

For Proguard Series only, a GAP discount may also be

available. Refer to the Underwriting guide for Disability

Insurance or the illustration software for all the details about

the Grad Advantage Program.

Permanent Part-time Workers

One of the fastest growing segments of the labour force

is part-time workers. The Venture Series is available to

permanent part-time workers who:

■■ Work at least 20 hours per week, and

■■ Earn a minimum of $12,000 per year, and

■■ Have worked part-time for at least 12 months prior to

application, and

– Work outside the home, and

– Work at least 10 months per year

Details

■■ Occupation Classes – 4A, 3A, 2A

■■ Elimination Periods – 90, 120, or 730 days

■■ Benefit Periods – two or five years

■■ Regular Occupation Period – five years (two years if the

benefit period is two years)

■■ Partial and Residual Disability Riders not available

Working From Home

Refer to the Underwriting guide for Disability Insurance for

more details.


Riders

Additional Insurance Rider (AIR) (not available to class B)

■■ Issue Ages: 18–50

■■ Only available for policies issued on a standard premium

basis, and subject to underwriting approval

■■ Minimum Total Option Amount: $1,000

■■ Maximum Total Option Amount is based on the Monthly

Benefit as below. This amount is automatically calculated

by the illustration software:

Class Total AIR Available ($)

4S/4A Lesser of: a) 5 × Monthly Benefit (but not less than 10,000); and b) 19,000 – Monthly Benefit

For the Grad Advantage Program, 19,000 – Monthly Benefit

3A Lesser of: a) 2.5 × Monthly Benefit (but not less than 3,0006); and b) 15,000 – Monthly Benefit

2A Lesser of: a) 2.5 × Monthly Benefit; and b) 8,000 – Monthly Benefit

A Lesser of: a) 2.5 × Monthly Benefit; and b) 6,000 – Monthly Benefit

6 $7,500 for Grad Advantage Program

This rider allows clients to purchase additional disability

insurance up to age 55 with financial evidence only, as long

as they are not disabled. Regular Option Dates occur each

policy anniversary up to age 55.

One option can also be purchased on a policy anniversary

that occurs when the client is disabled. However, the

additional amount is only payable for a new disability.

Premiums for the increase in coverage will be waived while

the original disability lasts.

Until age 45 or for five years if longer, the Annual Option

Amount (the amount available on each option date) is 20%

of the Total Option Amount selected at issue. Thereafter,

the Annual Option Amount is 10% of the Total. For the first

purchase only, clients may be eligible for twice the Annual

Option Amount, provided they are not disabled.

A one-time, Special Option Date is also available within

90 days of the loss of existing group insurance. The reason

for the loss must be either that the employer terminated

the group LTD coverage or that the client left the employer

for a new fulltime occupation that does not provide LTD

coverage. Clients may be eligible for up to twice the regular

option amount.

A one-time, Graduate Option Date is available to clients who

purchased coverage under the Grad Advantage Program,

and are now graduating and entering their first year of

practice. This option can be exercised from 3 months before

to 6 months after their graduation date. Clients may be

eligible to purchase up to the regular option amount.

We require financial information to justify the additional

amount. Increases in coverage are subject to our published

limits and financial underwriting guidelines.

We will normally add any AIR purchases to the existing

policy with rates based on the attained age and the then

current rate scale. However, it may sometimes be necessary

to issue a separate policy, in which case we would waive

the applicable policy fee. If the basic policy contains a

Cost of Living, Own Occupation, Health Protection, Partial

or Residual Disability Rider, the additional insurance will

automatically include these riders.

If your client exercises the Future Care Option, partially

exchanging some Venture Series coverage for long term care

protection, AIR will terminate.


Cost of Living Adjustment Rider (COLA 5%) (not applicable with a 2-year Benefit Period)

This rider adjusts the Monthly Benefit according to the

annual change in the Consumer Price Index (CPI) on a

compounded basis. The purpose is to align with the effects

of inflation. This rider operates during total, residual (if the

Residual Disability Rider is included) and partial disability (if

the Partial Disability Rider or Extended Partial Disability Rider

are included).

If the change in the CPI is less than 0% for any year, the

adjusted Monthly Benefit will not decrease.

COLA 5% has a cumulative maximum increase of 5%

compounded annually from the onset of disability

Note: The adjusted Monthly Benefit is also subject to an

overall cap on the Monthly Benefits from all Manulife

income replacement policies. The cap is equal to the greater

of $60,000 and three times the total of all pre-disability

Monthly Benefits.

Completed years

Change inCPI (%)

Adjusted monthlybenefit ($)

0 – 1,000

1 1.5 1,015

2 2 1,035

3 3.5 1,071

4 6 1,1357

5 8.2 1,2287

6 11 1,3408

7 12 1,4078

7 Note that the annual increase exceeds 5% here because the overall maximum is calculated from onset of disability.

8 Maximum 5% compounded annually from onset of disability

Once clients resume full-time employment and benefits

cease, they can increase coverage to the adjusted benefit

level without medical or financial underwriting. To qualify,

the Benefit Period must be longer than five years, the

attained age must be 60 or less and application for

the increase must be made within 90 days of the last

benefit payment.

Note: the owner can elect either this COLA buyback feature

or the catch-up feature on ACE purchases, but not both.

Health Protection Rider (HPR)

(standard and enhanced)

■■ Only available if the Regular Occupation Period is

to age 65

We offer the Health Protection Rider to health care workers

whose work substantially involves invasive procedures and

contact with bodily fluids (eg. surgery). HPR protects your

clients’ income during the asymptomatic phase of Human

Immunodeficiency Virus (HIV), Hepatitis B (HBV) or Hepatitis

C (HCV). With these viruses, there may be a long symptom-

free period during which clients are ABLE to work. However,

their income may be at risk because they may be prevented

from performing their occupation for legal, ethical or

moral reasons.

HPR provides benefits for clients who are totally disabled

as the result of impairment due to their seropositive

status, even if they have not developed symptoms of any

related sickness.

Seropositive status means that clients carry HIV, HBV or HCV

as confirmed by a blood test, and are at risk of transmitting

it to others. However, clients will not be considered

seropositive if they had elected not to take a vaccine that

became available prior to infection.

Currently a vaccine for HBV exists and applicants must have

already been vaccinated to purchase HPR.


With the Standard version of HPR, impairment due to

seropositive status means clients:

■■ Are prohibited from performing some or all important

duties of their regular occupation, or

■■ Are required to disclose their status to patients, and as a

result, some or all refuse treatment.

The prohibition or requirement to disclose would either be in

the form of a law or a written mandate or recommendation

from an appropriate governing or licensing body or

professional organization. This type of wording is standard

for such coverage in the disability insurance industry.

However, with our unique Enhanced version of HPR,

seropositive clients would also be considered to have

an impairment if:

■■ There is a reasonable expectation that continuing to

perform their duties would prove a health risk (whether

real or perceived) to their patients. This means that clients

need not be subject to any kind of official sanction or

restriction. They can choose to stop working if patients

might reasonably perceive a risk of becoming infected.

They need not reveal their status to colleagues, patients or

their community.

For both versions of HPR, we will waive the Elimination

Period. Payments will continue as long as clients meet the

expanded definition of total disability, up to the benefit

period of the policy. The regular care of a physician is

not required.

Please note that the expanded definition does not apply to

any Pensionguard Rider attached to the policy. If the Own

Occupation Rider is attached to the policy, the ‘own occ’

definition also applies to the Health Protection Rider.

We guarantee the initial premium for both versions of HPR

for five years. After this period, the premium may change on

any policy anniversary.

Own Occupation Rider (OOR)

■■ Only available to classes 4S and 4A, including

clients who have been upgraded from class 3A only.

Not available to chiropractors

■■ Only available if the Regular Occupation Period is to

age 65

■■ Issue ages: 18–55

The Own Occupation Rider waives the requirement that

clients not be working in order to receive total disability

benefits. In other words, the ‘own occ’ definition of total

disability means that injury or sickness prevents clients from

performing the substantial duties of the occupation in which

they were engaged at the start of disability, even if they

subsequently start a new career. They must still be under the

regular care of a physician.

This rider is typically of interest to professionals performing

specialized manual/sensory tasks that require many years

of dedicated training. The key consideration for selecting

this rider is how likely it might be that your client would

be unable to perform the substantial duties of the regular

occupation, but would still be able to work (and want to

work) at some other occupation. For example, it might be

difficult to think of a disability that would totally disable a

business executive but that would allow him/her to do some

other comparable job. Therefore, business executives don’t

generally need the Own Occupation Rider.


Pensionguard Rider(n/a to new business owners)

■■ Maximum Monthly Benefit: 15% of monthly earned

income9 to maximum of $2,000 (4S/4A/3A) or $1,500

(2A/A/B)

This rider continues your client’s retirement funding during

total disability, since missing even a few deposits could

cause a serious shortfall. The rider deposits benefits into a

non-registered flexible premium product designated by us

at the time of claim. (Currently benefits are deposited to a

Manulife Investments GIC or GIF Select.)

The deposits are locked in to death, age 65 or age 60 if

the disability policy is surrendered. We do allow partial

withdrawals of up to 50% of the annual income earned

by the non-registered funds to pay the corresponding tax

liability. We will also allow all or part of the funds to be

transferred to a designated RRSP. This could be done for

example when your client returns to work after a period

of disability.

Total disability benefits are available according to the

disability definitions of the underlying base policy. Please

note however that if the Own Occupation Rider is also

attached to the policy, the ‘own occ’ definition of total

disability does not apply to Pensionguard benefits. Also note

that the Pensionguard Rider on the Venture Series does not

provide partial or residual benefits.

The deposits begin after 90 days of total disability and

continue for the benefit period, which is the same as the

base plan.

For classes 2A, A and B, Pensionguard deposits will be

integrated when a similar retirement savings benefit

is payable by a Workers’ Compensation Act or other

government plan. The integration formula is the same as

integration on the basic disability benefits.

Partial Disability Rider (PDR)(n/a to new business owners or part-time workers)

■■ This rider pays 50% of the Monthly Benefit for up to

12 months of partial disability.

Clients will be considered partially disabled if, due to injury

or sickness, they are either unable to perform one or more of

the important regular duties of their regular occupation, or

are only able to work for half the usual time. They must be

under the regular care of a physician.

Extended Partial Disability Rider (PDR65)(n/a to new business owners or part-time workers)

This rider is available if the chosen benefit period is to

age 65. The partial disability benefit pays 50% of the

Monthly Benefit for up to 24 months of partial disability.

After 24 months, payments of 25% of the Monthly Benefit

will continue while partial disability continues, up to age 65.

During the Regular Occupation Period, clients will be

considered partially disabled if injury or sickness prevents

them from performing one or more important duties of their

regular occupation, or from working more than half the

usual time.

After the Regular Occupation Period, or if engaged in a new

occupation, clients will be considered partially disabled if

injury or sickness prevents them from working more than

20 hours per week.

Clients must be under the regular care of a physician.

9 Pensionguard is also available to students and new grads eligible for the Grad Advantage Program. The amount is calculated by the illustration software.


Residual Disability Rider(n/a to new business owners, part-time workers,

farm owners, class A business owners and class B)

The Residual Rider provides disability benefits if your client is

not totally disabled but, due to an injury or illness, is earning

at least 20% less than the prior earned income. Your client

must also be under the regular care of a physician.

The benefit is proportionate to your client’s loss of income.

If the income loss is greater than 80%, full benefits are

payable. During the first 6 months of residual disability,

the amount payable will not be less than 1/2 the

Monthly Benefit.

We use your client’s Prior Earned Income (PEI) to calculate

the income loss. Using the accrual accounting method,

PEI is the average monthly income for the best of the

following periods:

■■ Any six consecutive months in the two years

preceding disability

■■ The calendar year before onset of disability, or

■■ Any two consecutive years in the three years prior

to disability

The Automatic Indexing Provision indexes the PEI in

proportion to the change in the Consumer Price Index (with

NO UPPER MAXIMUM) to keep the level of proportionate

benefits in line with inflation.

Premium Refund Rider (PRR)

■■ Issue Ages: 18–55

PRR provides premium refunds every eight years if your client

makes few or no claims. To qualify for a refund, total claims

must be less than 20% of total premiums paid during the

eight-year period. Any claims (including waived premiums)

will be subtracted from the Maximum Refund Amount.

Partial refunds are also available at age 65 or death.

The PRR premium and Maximum Refund Amount do not

increase during a refund period (as ACE or AIR options are

exercised for example.) However, your client can elect to

increase the amount of subsequent refunds after a refund

is received.

There is one version of PRR:

Option Premium (%) Maximum Refund Amount

4 back + 46 4 × Total Annual Premium

Venture Series, Proguard Series, ExpenseComp and Buy-Sell Plus are sold by and are registered trademarks of The Manufacturers Life Insurance Company (Manulife). Manulife, Manulife Insurance and the Block Design are trademarks of The Manufacturers Life Insurance Company and are used by it, and by its affiliates under license.

MK2882E 03/18

1013269 CONVERTED TO GRACoL2006 Coated1v2€¦ · schedule in the Underwriting guide for Disability...

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Transcript of 1013269 CONVERTED TO GRACoL2006 Coated1v2€¦ · schedule in the Underwriting guide for Disability...