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Long-term disability insurance works when you can’t. If an accident or illness prevents you from working, disability insurance pays you an ongoing income to cover your monthly expenses.
Among the insurance companies in Canada to offer disability insurance is La Capitale Financial Security. How do its disability insurance products compare to the competition? Most importantly, should you buy disability insurance from La Capitale? Read on to find out.
About La Capitale Insurance
Founded in 1940, La Capitale Insurance is a mutual insurance company offering health and life insurance products in Canada. Besides term life insurance and permanent life insurance, it also offers critical illness insurance to protect your financial security.
In January 2020, La Capitale Financial Security announced alongside SSQ Insurance that they would merge to form the largest mutual insurance company in Canada called Beneva. As the transition will take several years to complete, you will still see insurance products branded as La Capitale Insurance and SSQ Insurance until 2024.
Key facts about La Capitale Insurance
AM Best Rating: A
Head office: 7150 Derrycrest Drive, Mississauga, ON L5W 0E5
Website: https://www.lacapitalefs.com/
Contact phone number: 1-800-268-2835
What Disability Insurance Plans Does La Capitale Insurance Offer?
La Capitale offers two disability insurance products to protect your income: Pillar Series and Simplified Accident Insurance. In the event an accident or illness renders you unable to do your job, you submit a disability claim to La Capitale Insurance. After you satisfy an elimination period, your disability benefits will begin.
La Capitale Insurance pays a monthly benefit so you can focus on recovery. The benefit can cover your expenses, protect your savings and provide financial support for you and your family.
Pillar Series
The Pillar Series is an income replacement plan designed for healthy individuals that pay up to $6,000 in monthly benefits. You can customize your disability policy by choosing the waiting period, benefit period, coverage amount, and optional riders.
One of the disability riders includes return of premium, which gives you back a percentage of premiums paid if you don’t file a claim. You can also get the future insurability option, which lets you buy more coverage without providing evidence of good health.
While most disability insurance products combine accident and illness coverages, the Pillar Series decouples them. This means you can get accident coverage with illness as an add-on, providing greater flexibility.
- Pros:
- It pays benefits on the first day if you are hospitalized for over 18 hours or undergo day surgery.
- It pays benefits for life if you suffer a total loss of autonomy, which occurs if you can't perform these activities of daily living: feeding, bathing, continence, dressing, transferring, and toileting.
- The income threshold to upgrade your occupation is low and attainable for most people. For example, to upgrade from occupation class B to A, you only need a minimum income of $35,000 in the last two years.
- Cons:
- Benefits are reduced by other sources of disability income like a government plan or another insurance company after six months of a claim.
- Because the coverage amount is limited to $6,000/month, it does not pay enough disability benefits for high-income earners.
- Because premiums are not guaranteed, they may increase in the future and affect your budget.
Simplified Accident Insurance
The Simplified Accident Insurance provides total disability benefits of up to $3,000/month if you cannot do your job due to an accident or soft tissue injury. While you can get 24-hour protection, you can also opt for non-occupational coverage if you are covered by Workers’ Compensation. This reduces redundancy and lowers your cost.
- Pros:
- There is no medical exam required, which streamlines the application process.
- The maximum benefit period is age 70, which is longer than the age 65 provided by most other disability insurance policies.
- The simplified underwriting process is suitable for self-employed workers who have been declined due to pre-existing medical conditions.
- Cons:
- The maximum benefit period for soft tissue injuries is 60 days for occupation classes A and 30 days for class B. Also, both classes have a cumulative benefit period of 180 days.
- You can't upgrade your occupation class like you can with the Pillar Series.
- It won't cover you if you've been unemployed for 12 months or more.
Here is a table comparing the products side by side:
Pillar Series | Simplified Accident Insurance | |
|---|---|---|
Target market | Base accident insurance with illness as an optional coverage for employees and self-employed workers. | Accident and soft tissue injury coverage for those with pre-existing medical conditions who were declined for illness coverage. |
Covers | Injury only with illness add-on | Accidents and soft tissue injuries |
Definition of disability | Regular occupation for 24 months | |
Age eligibility | 18-59 | 18-69 |
Occupation classes | 4A, 3A, 2A, A, B | |
Occupation class upgrades | Yes | No |
Waiting period | 0, 14, 30, 60, 90 or 120 days | 0, 14, 30 or 120 days |
Benefit period | Two, five years, to age 65 | Two, five years, to age 70 |
Minimum coverage | $500 | |
Maximum coverage | $6,000 | $3,000 |
Medical exam required | Yes, if illness coverage is purchased, above a certain age and amount | No |
Premium guarantee | Not guaranteed | |
Expiry | Age 65 | Age 75 |
Riders | Regular occupation extension, return of premium, hospital care, accidental death and dismemberment, accidental fracture, future insurability option, indexation option | Regular occupation extension, accidental death and dismemberment, accidental fracture, partial disability |
How Much Does La Capitale Disability Insurance Cost?
The cost of disability insurance depends on many factors: age, gender, smoking status, occupation, and plan design. Due to the countless combination of these factors, it would be impossible to display the cost of disability insurance for each person.
To give you a rough estimate, the table below shows the cost of a non-smoking individual in the 4A occupation class buying $5,000/month in coverage amount.
Age | Male | Female |
|---|---|---|
25 | $67 | $83 |
30 | $78 | $96 |
35 | $105 | $126 |
40 | $143 | $168 |
45 | $196 | $225 |
50 | $253 | $285 |
55 | $291 | $319 |
Verdict: Our La Capitale Disability Insurance Review
Should you buy disability insurance from La Capitale Insurance? It depends on a few things, like your health, occupation, and budget. If you are looking for the best disability benefits, have a stable employment history, and are in good health, you may want to start your search with another insurance company.
However, it does have competitive pricing and other benefits, as shown in the pros section below.
- Pros:
- With only two plans, La Capitale streamlines the disability insurance product lineup, simplifying things for insurance agents and consumers.
- An electronic application makes it easy to sign up for coverage.
- It has a unique total loss of autonomy benefit that pays you for your entire life.
- Professionals aIt has the return of premium rider, which not every insurance company offers.nd small business owners without established earnings can opt for the step rate option which lets you pay less in the first five years of the policy.
- Cons:
- La Capitale does not offer non-cancellable contracts. Instead, policies are guaranteed renewable. This means that while you can renew your coverage as long as you pay the premiums, La Capitale reserves the right to increase the premiums upon renewal.
- Because the most it will pay is $6,000/month, it is not suitable for high-income earners.
- You can't get the own occupation definition of disability.
How Do You Sign Up For La Capitale Disability Insurance?
Before you apply for disability insurance from La Capitale Insurance, you’ll need to do a needs assessment to determine the coverage amount you need. This includes calculating your monthly expenses and ensuring you have enough protection in the event of a disability.
Next, you will need to obtain a quote. As mentioned in the previous section, premiums for disability insurance depend on many factors. Therefore, you’ll need to determine if the cost of coverage is within your budget. Only a life insurance advisor can provide a quote from La Capitale Insurance.
It’s important to remember that the quote is only for the average person of the same age, gender, smoking status, and occupation as you. If you have a pre-existing condition, your policy may be more expensive, or you may have exclusions for these illnesses.
When you are ready to move forward with the disability insurance product, you can apply via an electronic application. Next, an underwriter will review your application with a focus on your health, medical history, lifestyle, earnings, and occupation. At this point, the insurer may request a report from your family doctor. Also, you may have to undergo a medical exam for further analysis.
When the insurer is satisfied with you as a risk, it will offer you coverage for disability insurance. Once you pay the premiums, you will have the financial security of disability coverage.
Need A La Capitale Disability Insurance Quote?
Long-term disability insurance works when you can’t, so you can focus on recovery without worrying about paying your bills. Whether you’re self-employed, a small business owner, or employed without disability benefits through your workplace, it’s vital to protect your financial plan.
Contact us at info@briansoinsurance.com or 604-928-1628 to get a La Capitale Insurance disability insurance quote. We’ll assess your financial situation and determine the best disability policy for you, whether with La Capitale or another insurance company.
Get Your Disability Insurance Quote Now
While we make every effort to keep our site updated, please be aware that timely information on this page, such as quote estimates, or pertinent details about companies, may only be accurate as of its last edit day. Brian So Insurance and its representatives do not give legal or tax advice. Please consult your own legal or tax adviser. This post is a brief summary for indicative purposes only. It does not include all terms, conditions, limitations, exclusions, and other provisions of the policies described, some of which may be material to the policy selection. Please refer to the actual policy documents for complete details which can be provided upon request. In case of any discrepancy, the language in the actual policy documents will prevail. A.M. Best financial strength ratings displayed are not a warranty of a company’s financial strength and ability to meet its obligations to policyholders.
