Income Replacement Indemnity (IRI) Extension
Coverage protects income beyond $96,000 (in 2018), up to a chosen limit, that is lost because of a disabling injury. It adds to IRI coverage all Manitobans have through the Personal Injury Protection Plan (PIPP). You should consider it if you earn more than $96,000 annually and don't have other disability insurance — through your work, for example.
IRI Extension Coverage allows you to extend your maximum limit on gross yearly income beyond the basic limit under PIPP. Like PIPP, it covers 90 per cent of your net income, with a seven-day waiting period. Compensation is based on proven lost income, just as it is under PIPP.
IRI Extension Coverage adds protection in two other areas affected by gross yearly income:
- Fatality payments: IRI Extension Coverage will mean higher payments to your spouse, common-law partner or if you're a single parent, your dependants, if you're killed in an auto accident. These payments are calculated using your extended IRI coverage, rather than PIPP's limit of $96,000 (in 2018).
- Retirement Income Benefit: If you qualify for a Retirement Income Benefit, your payments may be greater because the calculation uses your extended IRI coverage rather than PIPP's limit of $96,000 (in 2018).
Buy in small increments
You can buy in increments of $10,000. The cost is $20 per increment, with a minimum policy premium of $50.
Your maximum limit
You can buy a limit of up to $200,000 over the basic limit of $96,000 (in 2018). So, your maximum protection would total $296,000. However, remember: your income replacement is still based on actual income you've lost.
Talk to your Autopac agent for more details.