Disability annuity payout (DAP)

The Disability Annuity Payout (DAP) provides an annuity payable to the insured if he or she is unable to pay the cost of his or her contract due to disability, serious illness or loss of independence. This benefit is included on all universal life products.

Definition of disability

  • The insured is eligible for benefits provided he or she has been employed on a regular basis without interruption for a period of 2 years prior to the disability, and:
    • is unable to perform his or her main occupation and is not engaged in any other gainful activity or
    • is gainfully employed and has lost at least 25% of his or her income due to disability
  • The disability must have started before the insured's 65th birthday

Definition of loss of independence

  • When the insured is unable to perform 2 of the following 6 activities of daily living without the help of another person:
    • Bathing
    • Dressing
    • Toileting
    • Continence
    • Transferring
    • Eating
  • or

  • If the insured is suffering from a cognitive impairment that is endangering his/her health or safety such as Alzheimer’s disease and other types of permanent senile dementia

Definition of critical illnesses

The insured is eligible for benefits if he or she is diagnosed for the first time with one of the following illnesses:

  • heart attack
  • cancer
  • stroke
  • coronary artery bypass surgery
  • paralysis
  • major organ transplant
  • kidney failure
  • coma
  • deafness
  • loss of speech
  • multiple sclerosis
  • benign brain tumour
  • Parkinson's disease
  • Alzheimer's disease
  • occupational HIV infection
  • major organ failure on waiting list for transplant
  • loss of limb
  • severe burns
  • blindness
  • motor neuron disease
  • bacterial meningitis
  • aortic surgery
  • heart valve replacement
  • aplastic anemia
  • loss of independence

Amount and frequency of payments

Market value adjustment

Each payment is subject to a market value adjustment or surrender fee.

Impact on the value of the accumulated funds

  • Each benefit payment reduces the accumulated fund value and the amount payable upon death.

Grace period and proof of claim

  • Benefits are payable only if the disability, loss of independence or critical illness has continued without interruption for a period of 90 days and the insured is under the care of a physician.


  • No benefits are payable if the insured received a substandard rating on medical grounds or if the disability, loss of independence or critical illness started before the contract was in force.