Get a solid financial foundation before you graduate
Are you a fourth year engineering student in a co-op program at a qualifying Ontario university?
Engineers incorporate safety. That's insurance. Disability insurance helps protect your income when you're unable to work due to illness or injury.
Since disability is your biggest risk before age 65, get disability insurance. The best time is before you graduate because:
you pay less
you qualify more easily
you get a special exclusive offer
You don't need scary statistics to know the absolute necessity of getting suitable disability insurance.
Your ability to earn income is usually your most valuable financial asset. When you can't work due to an illness or injury, what happens to your income? What happens to your debts, expenses and savings?
Your best strategy is to get protection while you're a still a student.
You won't qualify for much coverage today — which reduces your costs. The big advantage is that once you're approved, you have the option to add coverage as your income increases — without medical underwriting. You just provide proof of your income and pay for the increase based on your age at the time of election. That's easy to afford because you have more income.
Although we're independent at Taxevity and offer products from different insurers, for you we recommend the Engineering Student Offer from RBC Insurance.
Standard features with the RBC Professional Series
You get many features built-into the product:
Tax-free benefits: receive tax-free monthly benefits up to age 65 after a 90-day elimination period.
Guaranteed premium rates to age 65: your premium rates will not increase as you get older or if RBC has more claims than expected.
Non-cancellable: as long as you pay your premiums on time, RBC can't change your policy.
Coverage beyond age 65: you have the contractual right to continue your coverage regardless of your health. The benefit period is reduced.
Conversion to long term care insurance: you have the contractual right to elect lifetime income regardless of your health. You receive tax-free income if you have a cognitive impairment or are unable to perform two or more Activities of Daily Living.
Portable: you can keep your coverage wherever you are on earth.
Premiums waived during disability: After 90 days of disability, your premiums are waived while you remain disabled. You also receive a refund of premiums paid during those 90 days.
10-day free look: you can cancel your coverage within 10 days of receiving the policy contract and receive a full refund
You can add options to enhance your protection. We recommend these three:
Future Income Option (FIO):
When you graduate, you get a one-time option to increase your coverage to $4,500 per month. As your income increases, you're entitled to increase your coverage with proof of income regardless of your health.
When you apply, you can purchase the ability to further increase your future coverage with this option while only providing proof of income (no medical evidence required). You can get $500 to $3,000 in increments of $500. This amount dictates the maximum you can choose to increase your coverage annually. On graduation you can increase your FIO amount to up to $3,500. The maximum tax-free benefit amount is $25,000.
Cost of Living Allowance: during a claim, your benefits increase 2-10% annually based on the Consumer Price Index (CPI).
Disability In Your Occupation: receive benefits if you can't do your regular work even if you can do other work (without this rider you might not receive benefits in this scenario).
The Special Offer
RBC has a special offer for fourth year engineering students in a co-op program at selected universities:
Simplified application: you only answer six questions instead of completing the longer regular application.
Financial underwriting waived: you don't need to provide proof of your current income or have your coverage limited by your current income.
Simplified medical underwriting: you do not need a medical examination or to provide body fluids.
Discounts: save 25% on your premium and any future increases purchased with the optional Future Income Option (FIO) rider.
Premium holiday: after you pay your first monthly premium by pre-authorized debit, you get the next eight months of coverage for free.
Coverage amounts: you can start with tax-free benefits of $450 to $3,500 per month.
Group offset removed: your benefits will not be reduced if you have disability insurance through an employer or association (though that plan may adjust your benefits).