Can I stop my insurance anytime and are there consequences?


#1

If I continue to be approved for LTD but decide to stop it (or they discontinue it) and I am now collecting my employment pension and CPP-D. Can they still take my CPP-D and other monies i.e. pension for a period of time after discontinuation of the insurance.


#2

They can only offset other income for the same period that you were also collecting LTD.
If your employment pension and cpp-d ends up being greater than your LTD-then your Insurer would owe you no monthly benefits.

It does happen that pensions and CPP-D set offs are more than the LTD-so that LTD does not have to pay any monthly benefits.


#3

They can only collect money from you in an overpayment situation. If you continued to owe them money for a past overpayment, then they can take action against you to receive the funds they believe they are owed. If you don’t owe them for past payments, then once LTD payments stop, your CPP and other payments are unaffected (at least by the LTD Insurer).


David Brannen

Disability Lawyer with Resolute Legal

The response posted above is based on the limited factual information made available and is not intended as a full and complete response to the question. The only reliabile manner to obtain complete and adequate legal advice is to consult with a lawyer, fully explain your situation, and allow the lawyer enough time to research the applicable law and facts required to give an adequate opinion. The basic information provided above is intended as a public service only, a full one-on-one discussion with a lawyer should be done before taking any any action. The information posted on this forum is available to the viewing public and is not intended to create a lawyer client relationship with any person. If you want one-on-one advice, please click here to request a free consultation or call toll free 1-877-282-5188 to speak with a member with our disability claim support team.


#4

Hi David
Thanks to you and Allyoops for responding. Sorry if I seem slow to understand all of this - I will blame it on my fog brain. So what would be examples of an overpayment. I am just trying to understand if that relates to me in anyway. The insurer is paying me 60% of my income since I have been off and continue to do so. Not sure what will happen with my 2 year mark - I am sure they are waiting to hear if I got approved for CPP-D and I also applied for the DTC.


#5

The DTC is your credit-don’t worry about it

If you get a lump sum retroactive payment from CPP-D you will have to pay back to the Insurer for any months they paid you that you were also eligible for CPP-D.

So if you were paid 2000 from LTD and now get 1000 from CPP-D -you owe back your Insurer 1000 per month where they had paid you in advance


#6

Thanks Allyoops - Does this also apply to STD payments. I started receiving STD in April 2016 and then started my LTD in July 2016.


#7

Yes-unfortunately the offset applies to std. You can check your policy-but typically it does