I was recently approved for CPP benefits, retroactive to October 2017. I have signed the forms that allow CPP to pay my insurance company directly any back owed money. I am qualified for roughly $770/month and the government told me they have a huge back log and it will take a minimum of 6-8 weeks, if not longer to start getting payments.
I notified my insurance company (Great West Life) about the approval and they have immediately stopped the payments of $770 starting June 15th. I have not received a cent from CPP and this loss of $770 per month from GWL is significant and will put me into financial stress pretty much immediately. I rely on that monthly income for my bills, mortgage etc and to just cut me off like that seems really unfair. I can’t survive for the next 3 months or longer with a cut of almost 800/month.
We all know the 6-8 weeks the government says it will take it just not true and everything takes twice as long as they say. I am scared, I can’t survive off this low payment and its causing me serious anxiety.
This seems really unfair to just cut me off a significant portion of my monthly income due to this approval when I haven’t got anything yet. Can i somehow have this reinstated from my insurance company until I actually get payments from CPP so that I am not thrown into debt and financial stress? Are there rules around this? I have left messages with them but have not had a response yet.
Any help you can provide please and thank you!
That is very tough. My province has urgent income assistance for this kind of scenario. Try the benefits finder to see if your province does: https://srv138.services.gc.ca/daf/q?id=1c39e846-91c8-4e5a-8eb7-4d519d42f28d&GoCTemplateCulture=en-CA
I would talk to the insurance company.
Maybe they expect cppd to start right away.
Good luck.
His seems like a very harsh action by the insurer. I know all insurers are getting much more aggressive with offsets and collections related to CPPD. They may well be within their rights to do this even though it is not necessary and creates stress and financial difficulty for you.
You can ask the insurer to reverse this action, but I expect that will fall on deaf ears. I don’t believe there is any way you can force the issue via legal means.
David Brannen
Disability Lawyer with Resolute Legal
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