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Survivor Income Benefit (SIB)
The Survivor Income Benefit is no longer available except to
those who continue to maintain this coverage.
A member with SIB coverage would receive a Dependent Life (DL)
insurance benefit of $20,000 on the death of a spouse and $10,000
on the death of a dependent child.
We recommend that if you are carrying SIB coverage after 15
years service, you should review your life insurance coverage
to ensure that SIB still meets your needs. If you wish, you
have the option of transferring your SIB coverage to level term
insurance (ie. OGTI) without evidence of insurability. If you
carry SIB coverage and you are going on deployment, see your
local Insurance Representative immediately, as, if you died
on duty, because your beneficiary would receive the maximum
Pension Act (PA) benefit, your SIB benefit would be reduced to zero.
Frequently Asked Questions:
Why do I have to look at this type of coverage if I have over
15 years service or am deploying?
SIB is not intended to duplicate the benefits available under
the PA and Canadian Forces Superannuation Act (CFSA). Therefore, in the case where a survivor
benefit is paid under the PA and/or CFSA, the SIB will
be reduced by the amount of the total benefit received from both.
Consequently, this coverage is particularly good in the early
years of service, because as you progress, your life insurance
coverage increases automatically with pay increases. However,
someone who either has more than 15 years of service or is deploying
to a theatre of operations, should be aware that the benefits
available to the spouse through the PA and/or CFSA, will
reduce the benefit payable by SIB substantially.
If I have more than 15 years service, can I keep SIB if I want?
Yes. You can keep the SIB if you wish. However, we do recommend
you meet with a SISIP FInancial Services (SISIP FS) insurance representative to make sure you
fully understand this product; it's benefits, and your options.
FAQ
Can I change my OGTI back to SIB after my return from deployment?
Yes, you can change your SIB prior to your deployment to term
insurance (OGTI) and change it back to SIB within 30 days of
your return if you so wish.
How are the premiums calculated and how do I pay them?
The current SIB premium is an amount per $1,000 of monthly
pay based on the member's age and smoker/non-smoker status.
Your premiums are paid monthly through a pay allotment.
Can I have SIB and term life insurance?
Yes, you can have SIB and term life insurance (OGTI) in force
at the same time.
FAQ
Can I keep SIB after I release from the military?
SIB coverage ceases upon release. Members may exercise their
right to convert to Insurance for Released Members (IRM) within
60 days of their date of release. Should the member fail to convert
the SIB to IRM and die within those 60 days
following the date of release, the full SIB
will be paid. However should the member fail to convert the SIB
to IRM within the 60 days following release,
the insurance will expire and no longer be in force.
What are the benefits payable to my spouse or children, and
are they taxable?
SIB pays 50% of your last pay rate less spousal
or orphan benefits received under the CFSA and/or PA for the lifetime of a surviving
spouse and is guaranteed to be paid for a minimum period of ten
years. The SIB is payable to the dependent child(ren) when there
is no surviving spouse, and ceases when the child(ren) is (are)
no longer dependent, or the ten year guaranteed period ends, whichever
is later. The SIB is taxable in the hands of the recipient.
FAQ
How is the term "spouse" defined?
What is the definition of dependent child(ren)?
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 No. 901102; and
iii. dependent upon:
- a living member;
- a former member's surviving spouse; or
- a legal guardian, or in the absence of a legal guardian, a relative of either the former member or the former member's spouse.
The term "dependent child" shall apply from the time of live birth until the child's 25th birthday. However, there shall be no maximum age limit applied if the dependent child has been continuously and wholly dependent upon one of the parties, mentioned in (iii) above, and is unable to provide for his own maintenance as a result of a physical or mental infirmity.
"Child" means a member's:
(i) natural children, including stillborn children. Stillborn 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 pregnancy of at least 20 weeks; or where the fetus weighs 500 grams or more;
(ii) dependent step-children;
(iii) legally adopted children;
(iv) children to whom the member stands in loco parentis;
(v) "Orphan", for the purposes of Part II means a Dependent Child who is survived neither by the member, nor the surviving spouse, or where a separated member has designated his dependent children as beneficiaries of his Survivor Income Benefit, under Part II.
If I transfer my SIB coverage to term insurance
how much can I transfer?
You can transfer your SIB coverage to a maximum
of 50 x monthly salary rounded to the next higher multiple of
10,000 without having to answer any medical questions.
FAQ
If I want more term insurance than the SIB will
give me when I transfer it, can I get more?
You can apply for additional term insurance (OGTI) up to the
maximum of $400,000, but for anything over what the SIB amounts
to, you will have to complete the medical questionnaire. It should
be noted that a medical examination might be requested.
Can my spouse and/or child(ren) transfer their
DL coverage without medical evidence, as well?
Your spouse can transfer her coverage of $20,000 to term insurance
(OGTI) with no medical evidence required (depending on her smoking
status), but once again, should you require more than this amount
of coverage, the medical questionnaire will have to be submitted,
with the possibility for a medical examination, if requested.
How do I transfer the SIB?
All you have to do, to transfer the SIB,
is call your local SISIP FS office and make an appointment with
the insurance representative and they will help you fill out
the required documents.
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