My LTD is forcing me after 5 years to apply for CCPD. In the letter they sent me it states that if i don’t sign 2 consent forms and return them that can start to deduct an estimate of CPPD. The forms of consent are to allow the lump sum payment to go directly to them the LTD company…the other is to provide consent for them to hire an advocate on my behalf if my CPPD is denied. Should i sign these forms? Part of my issue with the lump sum is that LTD can not touch the cost of living raise each year so if the lump sum is paid directly to the insurance then i will have to recoup money from them which probably wont be easy. I feel they have no right to threaten to cut off my benefits if i dont sign these forms.
Why do you think they have no right to the cost of living increase each year?
If your policy says they have a right to the CPPD lump sum then IMO that is whatever amount you get from CPPD for the period you were also on LTD.
If your legal interpretation is correct then signing the forms is a bad idea.
Your policy will say if they can estimate and deduct CPPD.
I wonder why they are doing this after 5 years.
I thought there was a time frame to apply for CPPD but I don’t know.
I would call Resolute for a free consult.
David, how does the insurance company know what the current amount of CPPD is because it increases for inflation each year?
It stated in my policy that they are only eligible to recieve the inital amount paid for CPP. The cost of living increase every year is mine and they cannot take it. They can only take it once my income reaches my predisability take home pay. So they can only decuct or recover whatever CPPD paid me within the first qualified year. If i sign the form then i will have to recover whats owed to me from my insurance.
I wouldn’t sign the form until you get legal advice.
You’re right, getting money back from an insurance company may be quite hard.
I think my plan excludes cost of living increases too.
My plan says:
Step 2: We subtract any income provided to you:
for the same or a subsequent disability under any government-
sponsored plan, excluding dependent benefits, employment
insurance benefits and automatic cost-of-living increases under
any government-sponsored plan that occur after benefits begin.
If I get approved before the end of this year then it’ll be ok since I already signed the form.
You should call Service Canada and ask them how inflation thing works. Most probably they apply it on current payments yearly. Lump sum payments may not be subject to inflation adjustment.
This is nice. We have to do everything on our own including the cost.
My husband’s lump sum-6 months was at one amount and the other 6 months was a higher amount-so the lump sum includes inflation amount
Another thing is SC only pays 13 months back-dated.
Why would an insurance company want someone to apply for CPP-D after 5 years?
I though there was a time limit for applying?
Sounds good to sign it.
The cynical part of me says “what’s the catch”.
Yes but this depends on the circumstances. They can and will go back to the
begining of your disability if it was unknown as to how long you would be
disabled.