Hello, welcome everyone. I am having issues deciphering a clause regarding LTD inflation adjustment - could you please tell me whether the LTD payment is entitled to a yearly increase? I was told no by the ins. but the language in the contract seems contrary (and contradictory) - “Amount payable” is adjusted and “gross benefit” is not. Isn’t the benefit the amount payable? And what is the “coordination level”? Sorry if it seems obvious but I find it confusing:
The amount payable will be recalculated for inflation protection 1 year after the start
of the benefit period and annually after that. On those dates the income limit under the
rehabilitation incentive provision will be multiplied by the Consumer Price Index factor.
The Consumer Price Index factor will not be applied to the gross benefit or the coordination level.