Categories

Categories

Non-Evidence Limits (NEMs)

These represent the maximum amount of insurance we can extend to each employee without asking for medical evidence. These amounts will be limited by salary and plan design.

https://helpcenter-io.s3.amazonaws.com/uploads/cpaipw/9RHm37XEQRKoLUtNAIF1zPIjttMvGP36QQFORtjx.pngpng
Example: ABC Company offers life insurance at 2x employees' salary. Employee 'A' is a Non-CPA, and their salary is $80k/year. At 2x salary, Employee 'A' qualifies for $160k term life insurance ($80k x 2). However, based on the above NEM, Employee 'A' will be added to the benefit plan with $125k term life insurance. If Employee 'A' would like the full coverage of $160k, they would need to apply for the additional $35k ($160k - $125k).

Insurance over these amounts is available (if applicable, based on salary and plan design). However, it is up to each employee if they would like to apply for that amount. If they choose to, they will need to provide Evidence of Insurability. Additional insurance amounts can be approved or declined but will not affect coverage already in place. Employees interested in learning more are encouraged to contact us directly at firms@cpaipw.ca.

Was this article helpful?