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Calculating an Employee’s
Monthly LTD Premium
Instructions on calculating an employee’s monthly premium:
Monthly premium for an individual with basic monthly earnings of $3,000 and a benet 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 specic plan details.
1. Benet 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 benet 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 benet, the coverage amount will be limited to the policy
maximum benet 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
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