A monthly
average of the performance of the subaccount is
calculated and credited to the account at the end of each month, after taking into account the floor,
cap, and participation
rates.
Where things can really get complicated is that these annuities use arcane methods to
calculate their gains (daily
average, monthly point - to - point, annual point - to - point) and typically impose spreads, participation
rates or
caps that limit the share of the market's return you receive.
Here is what you need to know about Income Replacement Benefits (IRB's): • IRB's are
calculated at 70 % of your
average gross income based on your employment history o Your income is
calculated as the higher of either (i) the 52 weeks before the accident OR (ii) the 4 weeks before the accident multiplied by 13 o Self - employed income is
calculated as the higher of either (i) the 52 weeks before the accident OR (ii) the last fiscal year o If you are receiving other income replacement assistance, such as short term or long term disability benefits, those amounts are deductable from the amount of your IRB eligibility • IRB's are
capped at $ 400 per week • The first 7 days of your disability are not covered by IRB's • IRB's are payable for a 104 week (2 year) period, but you may be eligible to continue receiving this benefit past the 2 years indefinitely, if after the 2 year mark you are unable to do any occupation for which you are reasonably suited by way of your education, training and experience • The age 65 marks changes in IRB's o If you are already over the age of 65, IRB's are payable up to 208 weeks and gradually reduced over that period o If you reach the age 65 while already receiving benefits, the IRB is converted to a lifetime pension at a reduced
rate based on an established formula