Issues with cancelling insurance down the road


#1

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.


#2

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!


#3

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.


#4

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.


#5

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).


Sorry to hear about your disease, hopefully you live long and pain free.

I’m sure David will respond.


#6

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–


#7

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.


#8

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.


#9

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!


#10

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.


#11

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

The response posted above is based on the limited factual information made available and is not intended as a full and complete response to the question. The only reliabile manner to obtain complete and adequate legal advice is to consult with a lawyer, fully explain your situation, and allow the lawyer enough time to research the applicable law and facts required to give an adequate opinion. The basic information provided above is intended as a public service only, a full one-on-one discussion with a lawyer should be done before taking any any action. The information posted on this forum is available to the viewing public and is not intended to create a lawyer client relationship with any person. If you want one-on-one advice, please click here to request a free consultation or call toll free 1-877-282-5188 to speak with a member with our disability claim support team.


#12

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!