So here’s my question. Most Ltd will not allow any $ to be earned without paying it back dollar for dollar, but this NEW beneifit is NOT CONSIDERED EARNED money and the beneifit is not listed in their policies as it is brand new. How legal or likely will it be for the Ltd insurance companies to take it back from their clients in times of need? Personally I dont think it should need to be reported as it is NOT considered Income. Thoughts or answers anyone??
No answer, but it is an income replacement benefit. If they found out and you do not report, you may be subject to having to pay it back or having your LTD stopped for breach of contract. Not sure how your Insurer would know if you did receive.
It would really depend on the specific offset clauses in your LTD policy. Some clauses are worded broadly and cover much more than earned income.
The bigger concern people should have is the government asking for the money back, rather than the insurance company. Most people who are receiving CPP or LTD do not qualify for the CERB even if they are being approved and paid at the moment.
I have a blog article coming out next week on this because it is going to be a big problem for some people.
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 reliable 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.
1 Like
You can be very sure that it is an offset.
E.I. is an offset, this will be treated similarly. Taxable income benefit, or a similar definition.
Most LTDs do not say earned income, they can word it differently.
1 Like
I think mine says “any government program”.
I don’t qualify because I don’t work.
You’re going to have to check the language of your LTD benefits. It would not be clawed back under my LTD policy.
1 Like
This is correct. Unless there is language like “any government program” then likely it would not be an offset. Insurance companies have to be very specific and clear with any offset wording.
The conern I have is that even if the LTD won’t offset, their is a risk that many people are mistakingly thinking they qualify, when if fact they don’t. So Revenue Canada will see refund of CERB from people during next tax season.