I am receiving LTD from GWL and have been approved for CPPD, my child is a university student and received an application to apply for the CPP dependent amount. If my child applies for the ~$250/month dependant amount, I am wondering if GWL will offset the amount that my child is eligible to receive for the months of the year they’re a full time student from my benefits? The payments go directly to my child as long as they’re attending school full time but I am wondering if the insurer will still offset these CPP funds from my LTD payment? My LTD policy does not specify anything pertaining to child CPP dependent payments, it says my benefit amount is reduced by an amount I receive from CPP but doesn’t list that the amount my child would receive as an offset. Do insurers generally offset these child amounts even though the child is the one who applies for them? Anyone here have a child in university that received the CPP child dependant amount that could share how their insurer treated these funds ie were they offset from LTD or not?
Usually it is not deducted.
thanks Caro, has it been your experience that the CPPD child dependent amount wasn’t deducted by the insurer or is this what you’ve heard from other members?
Your long term disability insurance policy will list the things that they are able to deduct. You will need to check your policy’s wording. Mine specifically says that the children’s benefit is not deducted. Not deducting the kids’ benefit is the usual case, but a rare few do deduct it so check your own policy. If you are still not sure after reading it I would ask your case manager or your employer’s HR department or ask Resolute Legal for a free consult.
Hi. I have two children in university. They both receive the $250/month directly. The funds are not offset by my LTD. This money is for your kids and they pay the tax on it. I don’t think it can be offset because it is not your income. Hope this helps.
My understanding is the benefit is paid directly to your child. I had three children in university with the benefit and my LTD was not affected, nor was my CPPD.
A confirmation of enrolment was sent out before September and the university would complete it.
It is very important to read the fine print of your LTD policy.
Mine states first, “that it can be reduced by CPP, but excluding child care benefit” so you would think they can’t touch that, however look for another clause about all sources maximum as then they usually sneak in they can take into account and deduct the amount you receive for dependents benefit.
Most LTD policy will make sure whatever your LTD monthly payment was before CPP approval, that you do not make any more. It is unfortunate they can take dependents benefits. Please make sure you read the fine print of your LTD policy.