Income Replacement Indemnity (IRI) Extension
Coverage protects income beyond $93,000 (in 2016), 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 $93,000 (in 2016) 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 $93,000 (in 2016). 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 $93,000 (in 2016).
- 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 $93,000 (in 2016).
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 $93,000 (in 2016). So, your maximum protection would total $293,000 (in 2016). However, remember: your income replacement is still based on actual income you've lost.
Talk to your Autopac agent for more details.