Common use of Living Benefit Clause in Contracts

Living Benefit. An employee who meets the following criteria shall be eligible to cash out 50% of his/her total claim value to a maximum of $50,000. • the illness must be terminal with death likely to occur within 24 months; • write the IESO stating intent to apply for Living Benefits; • the consent of the employee and his/her beneficiary is required; • the employee must be competent and able to understand a transaction of this nature. Payments must be processed as a loan and interest charged to avoid making the payment a taxable benefit to the employee. When death occurs, the advance payment plus accrued interest is deducted from the claim value.

Living Benefit. An employee who meets the following criteria shall be eligible to cash out 50% of his/her total claim value (basic + additional) to a maximum of $50,000. Criteria: • the The illness must be terminal with death likely to occur within 24 months; . • write the IESO stating intent to apply for Living Benefits; • the Xxxxx Power’s consent of the employee and his/her beneficiary is required; . • the The employee must be competent and able to understand a transaction of this nature. Payments must be processed as a loan and interest charged to avoid making the payment a taxable benefit to the employee. When death occurs, the advance payment plus accrued interest is deducted from the claim value.