I’ve been on Long-Term Disability for a while now. I applied for CPP disability and was approved. I never told my LTD insurer that I was approved for CPP disability. As of now I owe them around $30,000.
What will happen if my LTD provider finds out about an approved CPP disability? How will they find out? Will I go to jail for that?
I am not a lawyer.
I think worst-case is you would have to pay them back.
If they ask you to apply later and produce an approval letter dated in the past then you would have some 'splaining to do.
And they might cut off your LTD.
You are required to pay them back. CPP-Disability is meant to offset the cost to the LTD insurer when you get both. You cannot profit from insurance. You won’t go to jail but you will be required to pay them back. If you don’t, they will reduce your LTD until its recovered.