Long Term Disability Insurance

Earnings Test

The insured may be considered disabled in any month in which he or she is actually working, if an injury, sickness, or pregnancy (whether past or present) prevents the insured from earning more than 80% of pre-disability earnings in that month in any occupation for which he or she is qualified by education, training or experience. On each anniversary of the date the disability stared, the monthly earnings figure used to determine disability will be increased 7.5%.

If the disabled insured's actual earnings during any month are more than 80% of predisability earnings (including the 7.5% increase), the insured person will not be considered disabled under the Earnings Test during that month. Salary, wages, partnership or proprietorship draw, commissions, bonuses, or similar pay, and any other income the insured receives or is entitled to receive will be included. However, sick pay and salary continuance for periods not at work will not be included. Any lump sum payment will be pro-rated, based on the time over which it accrued or the period for which it was paid.

The insured person may still be considered disabled according to the Occupation Test, without regard to the level of earnings, if the requirements of that test are met.