Issues with cancelling insurance down the road

Hi there. I need one more thing clarified. I am not sure what I am doing but want to run this by you.
If I am approved for the COD at the 2 year mark (feb 2018) and decide to cancel my insurance and take my HOOP pension in the fall of 2018, Are there any issues I need to think about if I do this. Can I just say I am cancelling my insurance with you? For this to work financially for me I would need my full monthly pension and my full CPP-D. Can the insurance company go after any other money i.e. my pension once I close off with them. They seemed interested in knowing when my next review was with my HOOP acrual insurance which is currently paying my pension contributions and I was not sure why they would be interested in this. This was a question I was also thinking of asking my caseworker via an email.

I would think you should review this very carefully and make sure you are choosing the best financial options for yourself.

I personally have no clue on what your options are!

I think the insurance company can go after any CPP-D payments that are backdated to when you were receiving LTD.
I don’t think the can grab your pension payments if you stop LTD.
I think the safest thing to do is get a copy of the master policy.

Thank you for your input. I hoping that David might respond to this.
Yes they would be able to take any back payments CPP-D but would that not be settled if I get a lump sum initially - at this stage I don’t even know yet whether they are going to even approve me for CPP-D. Yes, Allyoops I will weigh my options and I do need to go to my accountant and check in with a lawyer but I need to know the facts around what to expect if I chose this option vs. another one. I am just trying to think ahead here. I am currently living off of my insurance income and am really finding it tough since it is almost half of what I was earning and I still have a loan to pay off. If I have any extras like this month - wedding, retirement party, 60th birthday, family reunion, a crown (making payments) and glasses (insurance did pay for most but I still had $60 to pay) it is too tight for comfort and I guess in the past. I was fortunate enough never to have been in this situation before. I guess I am thinking that if I get my pension and full CPP-D I will have some extra cash per month vs what I have now. Also the life expectancy for someone with Cardiac Sarcoid is thought to be 50-60% survival in 5 years but I also have Pulmonary Sarcoid which makes the prognosis worse. So I am trying to factor that possibility in which is not pleasant but a reality. Thanks again for your input.

Sounds correct to me.

I don’t know how strict Service Canada is but if you do qualify then there is the terminal illness form (you get a decision on CPP-D in 5 days).
https://catalogue.servicecanada.gc.ca/apps/EForms/pdf/en/ISP-2530.pdf
Sorry to hear about your disease, hopefully you live long and pain free.

I’m sure David will respond.

So sorry that you are going through such difficult illness-I confess I had to google your conditions.

As for money issues-it is super tough. I just don’t give for birthdays, Christmas and such–a family meal is gift enough.

When your income is reduced by 50% your gift is your presence. Be kind to yourself–

Thank you I am hoping that I am the 50/60% that survives 5 years but unfortunately this is such an unpredictable disease with unknown cause and cure.
My meds are there to help stabilize and hopefully reduce the inflammation.

Thanks Jammer - This disease is potentially life threatening but would not be classified as necessarily terminal - that would depend on what stage I get to.
This disease can also go into remission suddenly - they don’t know why but currently my disease has been getting worse but recently a little more stable so who knows - a very unpredictable disease re: progression.

I just want to thank you all again for responding to my enquiries. This can be a very complicated situation with lots of unknowns right now re: approvals (CPP-D, COD, pension, TDC) & my disease process. I guess I am just trying to get a handle on options and possibilities given different situations. The decisions I make in the next few months are some of the most important that I can make re: my financial health. I really appreciate your repllies!
Take Care!

I understand that because I like to plan things out for years ahead.
I know my health may change significantly so it is pointless to plan ahead but I’ve always been a calculating person (sounds nefarious :-)).

Good luck.

1 Like

Rupert these types of questions don’t lend themselves to a forum because the issues are very specific to your plan and in the interactions with the retirement plan. As a general Rule, it is never a good idea to “cancel” an LTD plan that is paying you. Normally if you start drawing a retirement pension or designate your self as “retired” the LTD Plan will terminate automatically or they would be allowed to offset their payments dollar-for-dollar based on what you are receiving from CPP and retirement pension. Again, I am saying this generally speaking and not to your situation specifically. In summary, there is no need to cancel LTD insurance if you plan to start taking retirement pension. I caution you to really think this through because in most cases a person is much better off financially to delay taking retirement pension as long as possible, and to keep getting the CPP / LTD as long as possible.


David Brannen

Disability Lawyer with Resolute Legal

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Thank so much for replying. I am hearing you. I know I would probably make a little more money if I had my pension, the bridge and CPP-D because it is so hard living on my income and that is also because I am paying off some debt and did not know I would find myself in this situation - was not prepared. This disease can also be life threatening so I also am having to try and factor in my prognosis which is very difficult with this unpredictable disease. Currently things have not been so good but I must be careful not to be over-reactive either. I appreciate your comments and do realize that these are good but general comments. Thanks again!