subject: Looking at the Business Insurance Option from RBC Insurance [print this page] Looking at the Business Insurance Option from RBC Insurance
Insurance policies often aren't far from a puzzle. First, you pick the main insurance policy. This is the easier part. But then, there is an entire slew of alternatives, riders and variants that may have potential benefits to you. These exist so that you may enhance your policy and take care of your own specific risks in a kind of "pay per service" fashion. Let's talk about a relatively mysterious rider now: the Business Insurance Option.
RBC Insurance now offers a Business Insurance Option, which is a concept similar to the Future Income Option under its traditional disability policies.
Business Insurance Option is a policy rider upgrading RBC's Disability Insurance buy-sell policies. The rider is reasonably priced and it provides business owners the ability to top up additional salary protection (without a medical). This is designed for those shareholders who expect their business's value to increase soon
Akin to the Future Income Option on disability insurance, the Business Insurance Option guarantees the insurability of the business partners. An example of this would be if one of the partners discovered a health issue, like diabetes but their enterprise grew in value. Obtaining additional coverage could very well become an issue in a habitual case. Thanks to the Business Insurance Option, however, the insured can raise her or his income protection under the plan at each "option date", which means every other year from the plan's effective date.
The limit face value of the improved coverage is 18% of the rider amount every two years.
The client is asked to bring a proof of their insurability. This is in fact any evidence of an growth of business-related income. Medical exams are, however, not needed any more.
As the covered person exercises this rider, the extra fee is calculated using her or his current age, not her or his age when he or she submitted the initial application.
The option amount is for a matching coverage type and contractual terms that are available as part of the original underlying plan.
To find out about more little-known insurance riders, options, and to stay updated about the latest insurance-related news, please visit LSM Insurance's online resources.
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