® / ™ Trademark(s) of Royal Bank of Canada. Used under licence.
VPS 105628
83532 (09/2019)
Calculating an Employee’s
Monthly LTD Premium
Standard Worksheet
Instructions on calculating an employee’s monthly premium:
Monthly premium for an individual with basic monthly earnings of $3,000 and a benet schedule of 66.67% of earnings to a maximum of $5,000 per month.
66.67% of $3,000 = $2,000
$2,000 x $1.20 = $2,400 ÷ 100 = $24.00
Please refer to your group insurance contract for specic plan details.
1. Benet percentage (your policy/contract is the source)
2. Policy rate per $100
3. Monthly earnings (from client)
4. Plan monthly maximum (or non-maximum if applicable)
5. Take the benet percentage (#1) and multiply it by the employee’s monthly earnings (#3).
(This equals the employee’s coverage amount.)
If this dollar amount exceeds the policy’s maximum benet, the coverage amount will be limited to the policy
maximum benet amount. $
6. Multiply the employee’s coverage amount in (#5) by the rate in (#2).
7. Divide the amount in (#6) by 100.
This equals the employee’s monthly LTD premium amount. $
We appreciate your business. If you have any questions, please call your RBC Insurance
sales representative.
Please retain this form for your records.
RBC Life Insurance Company, PO Box, 1600, 8677 Anchor Drive, Windsor, ON N9A 0B3, 1-855.264-2174, www.rbcinsurance.com