Both Husband & Wife on LTD

Hello, this is my first time emailing a question as I am rather new to the site.

My husband who was 55 survived an anyerisum on his aorta just over a year ago, the illness has left him with life long restrictions therefore his employer has tried to accommodate but it was too taxing on the body, so he has only been able to do part time, he has the policy of "own for 2 years then “any gainful” occupation. His previous job description was equipment operator.

  1. Can they make him be trained for another job (different employer) as his employer doesn’t have full time work for him(although he is not able to do 40 hours a week).
  2. Is he able to cash in some of the RRSP’s being his income is lower based on his taxable LTD, if so will LTD reduce the money
  3. I too suffered an illness this same year and have been approved for LTD although my coverage will only last for 2 years, can I cash in on RRSP’s

Thank you for all your help and I hope this makes senxe

I think “gainful occupation” is typically 60% of what he earns now.
Are there any occupations he can do part time that he can be trained for that would pay him that much?
I don’t think they would pay for the retraining just say he could do another job and cut off his LTD.
This is worst case.
Whether they do it probably depends on his age.
I am just guessing.
Hopefully someone else will comment.

You can cash in your RRSPs without affecting LTD.

Insurers can’t directly force someone to do retaining, but that can be the practical effect if they take the view that a person has the skills to work in other occupations. Some LTD policy include the clause “or can be trained to do” to broaden out the range of possible “any occupation” jobs. You would have to see how your policy defines any occupation.

If retaining is a realistic possibility, there are lots of possibilities. SOme insurers will pay for the retraining and pay LTD benefits during the retaining period. Others will not and say you have to do that on your own and don’t qualify for LTD while retraining. It’s all over the map.

Sometimes they will say a person can do retaining when it is clear they cannot due their disability or skills. In those cases, you claim ongoing disability from any occupation and may need to sue the insurer.

David Brannen

Disability Lawyer with Resolute Legal

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Thank you for your email,

the insurer has now stated that they are requiring forms from employer(forms are not suited to his line of work) we had to put in brackets that the answers were all for pre-disability.

my spouse is only capable of working part time, employer doesn’t have permanent part time work( only when needed) this is where our concern is.

@David_Brannen if the person can only do part-time work because of disability shouldn’t the insurer pay partial LTD to make up the shortfall from employment income?