Coverage After Release (CAR)
Effective 1 October 2005, the CAR insurance plan is no longer available except to those who continue to maintain this coverage. CF members nearing their release or released CF members can apply for term life insurance coverage under the Insurance for Released Members (IRM).
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Questions & Answers on the Termination of CAR
This term life insurance plan, in the event of death, pays the insured amount purchased to chosen beneficiaries.
Frequently Asked Questions
What are some of the most important features?
- A free Dependent Life (DL) insurance coverage of $10,000; and,
- A living benefit that provides, under specific circumstances, access to:
- An amount not to exceed 50% of the face value of the life insurance in force to a maximum of $50,000, provided that the insured has a terminal illness, and the prognosis by the physician, and confirmed by Manulife Financial's consulting physician, is that death is expected within 12 months.
FAQ
What is a Paid Up Certificate (PUC)?
The PUC is equal to 10% of the CAR coverage you have in effect at age 65* and is paid to your beneficiaries when you die. At age 65 you will have the option of converting your coverage to a PUC worth 10% of your coverage or continuing your full face value of coverage to age 74. If you choose the PUC option at age 65, you will cease paying premiums at that time.
Example: If at age 65 you have $100,000 of CAR coverage and you choose the PUC option, your beneficiaries will receive $10,000 when you die.
*As per the CAR plan, age 65 is interpreted as the anniversary date of your policy following your 65th birthday.
FAQ
Who is eligible for Dependent Life (DL)?
A dependent child is eligible for DL until their 25th birthday . The term "child", unless stated otherwise, means a member's:
(i) dependent natural children;
(ii) natural stillborn children;
(iii) dependent step-children;
(iv) dependent legally adopted children;
(v) dependent children to whom the member stands in loco parentis .
Dependent child means a child who is:
(i) unmarried and not employed (on a regular and full time basis);
(ii) ineligible to be insured as a member under policy # 901102;
(iii) dependent upon:
a. a living member; or
b. a former member's surviving spouse; or
c. a legal guardian, or in the absence of a legal guardian, a relative of
either the member or the member's spouse.
"Stillborn," unless stated otherwise, means any fetus which, after having been completely expulsed or extracted from its mother, demonstrates no breathing, beating of the heart, pulsation of the umbilical cord, or unmistakable movement of the voluntary muscle, and where the expulsion or extraction occurs after a pregnancy of at least 20 weeks; or where the fetus weighs 500 grams or more.
There shall be no maximum age limit applied if the dependent child has been continuously and wholly dependent upon one of the parties ( in (iii) a - c above), and is unable to provide for his own maintenance as a result of a physical or mental infirmity.
FAQ
What are the limitations of DL?
DL coverage is limited in all circumstances to $10,000 per "dependent child".
FAQ
How is the term "spouse" defined?
- A person who is married to a serving or released member;
or
- A person for whom a written declaration of common law
status has been filed with SISIP FS.
FAQ
How are my premiums for CAR determined and how do I pay them?
Premiums for CAR are age-banded, based on your smoker/non-smoker status, the amount of coverage requested, and they increase in five-year increments.
Your premiums can be paid using one of the following
methods, depending on your specific circumstances:
- By monthly Electronic Fund Transfers (EFT);
- By one cheque covering the annual premium; or,
- By completing a Pension Deduction Authorization Card (CFSA) for automatic monthly deductions.
FAQ
Can I apply for or increase CAR coverage?
No. The CAR plan is no longer available. CF members nearing their release can apply for IRM. For members who continue to maintain CAR coverage, any increase in coverage would fall under IRM.
FAQ
I heard that CAR provides an additional coverage in the form of Accidental Dismemberment benefits. Can you explain?
Subject to specific dismemberments, exceptions and limitations, and provided that you are less than 65 years old at the date of the accident, CAR provides for dismemberment or loss that occurs within 365 days of, and as a result of an accident. Depending on the type of loss, a lump sum payment is paid, ranging from one quarter to the full amount of coverage in force.
FAQ
Are the benefits under CAR taxable?
No, CAR benefits are not taxable to the beneficiary(ies).
FAQ
Can my benefits be assigned?
No. You can't assign, encumber or commute any rights or benefits under this Policy.
FAQ
Who can I designate as my beneficiary(ies)?
Any person(s) or organization(s) may be designated as the beneficiary(ies) of a member's CAR policy. However, the primary beneficiary of a spousal coverage is the applicant unless you specified otherwise. In the absence of a beneficiary designation on a member's coverage, the proceeds are paid to the estate. In most cases, this is not recommended, so please see a qualified, licensed SISIP FS insurance representative.
FAQ
What are the limitations and exclusions of CAR?
If your death results from self-destruction while you're sane
or insane:
- No CAR life insurance benefit is payable unless the life insurance became effective or was reinstated for more than two years prior to the date of death; and,
- No increase in CAR coverage is payable unless that increase became effective or was reinstated more than two years prior to the date of death.
The maximum insurance benefit payable on the insured cannot, in aggregate, exceed $400,000 under each, or a combination of, OGTI, RTIP, CAR and/or IRM.
FAQ
Will my CAR pay my beneficiaries if I die while participating in a dangerous occupation, hobby, or volunteer activity?
Yes, if you have CAR and die while participating in a dangerous occupation, hobby, or volunteer activity your SISIP FS Term Life Insurance Plan will pay your beneficiaries.
As explained in the limitations and exclusions section above, the only exclusion to the CAR plan is:
- Self-destruction (life insurance must be in force longer than two years)
FAQ
When does my insurance coverage terminate?
- The day we receive notification in writing that you have withdrawn authorization for the payment of the required premiums;
- At the certificate anniversary date following your 75th birthday; or
- The date on which the group policy is terminated.
FAQ
What happens if I re-enrol in the Regular Force or in the Reserve Force?
If you re-enrol in the Regular or Reserve Force, you have 60 days following your date of enrolment to switch your coverage to the appropriate plan (Optional Group Term Insurance (OGTI) for Regular Force members or Reserve Term Insurance Plan (RTIP) for Reserve Force members).
FAQ
What are the documents required to file a claim?
Please note that, when notified of a loss, the Insurer (Manulife Financial) mails the necessary forms and instructions to the beneficiary(ies) of record. Your beneficiary(ies) can also obtain the forms and assistance from a SISIP FS representative, or by calling the SISIP FS Ottawa Office.
In the case of conflict between this document and the insurance
contract, Policy #901102, the terms of the contract will prevail.
