LTD payment deductable of CPP disability benefit

Let’s assume there is 0% fraud.
I still think getting 85% of work income is unreasonable.
Let’s take LTD out of the equation, just living off CPP-D (some people do) is generally very hard.
I’m far from conservative but the money has to come from somewhere.
I don’t know what would work.

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I agree with Jam. Disability is not a way to profit. It may give an incentive to people to submit unreasonable claims. As a result those people who are trully ill will suffer. When you are in difficult situation you tend to appreciate any help.

Disability typically leads to poverty or reduced standard of living. CPP disability was not intended to offset Big Corporate Insurers reduce their liability to policy holders. In fact, it eats away at our tax dollars from Insurers forcing so many folks to apply that they know will not, or likely not, even be approved.

Most LTD policies have a maximum monthly benefit amount that is not indexed to inflation. So every year LTD benefits remain at the same set amount but the amount is year after year eaten away by inflation. Your 2000 LTD benefit within 10-15 years will give you about 50% of the buying power today.

I do not believe the vast majority would claim disability falsely. It’s too hard of a process. So 85% today may seem generous-you can only spend half of it as you will need to save to fight inflation. Not very realistic—so for those on the long term will just get poorer and poorer.

CPP-D should not be used by Corporations to make huge profits,

There are rigorous procedure to filter and deter unreasonable and/or fraud claim, but not by the way that making true LTD people’s life miserable. Like you can’t make the living condition of the jail shitty in order to deter criminal.
“When you are in difficult situation you tend to appreciate any help.” → So, for truly LTD people, every penny counts. One penny will have different meaning for LTD people from people enjoy normal life. 3 dollars might just mean a cup of ice cream for common people, but it means piece of bread for LTD people. With that say, would it be appropriate to take money away from these LTD people?

I have changed my mind.
If CPP-D never existed then insurance companies would have to pay the full amount anyways.
They are prepared to pay the full amount so it doesn’t make sense they gain from CPP-D.

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I guess I have a good plan, mine increases each Jan based on the Canadian Consumer Price index.

Yes, that is a good plan. Most policies, even if it has an indexed amount has a cap on the maximum benefit amount.

One question for David:
Say, someone bought and hold two LTD insurance policies from two insurance company, company A and company B. Can he claim LTD payment from these two insurance companies at the same time?
If yes, then he actually “make profit” from the LTD payment from these two insurance companies at the cost of paying two premiums before the LTD claim.
What if company A claim that to avoid “double recovery”, they will deduct the LTD payment with the amount this person got paid by the company B. So, company A will pay zero dollar to this person.
At the same time, company B also do the same thing, deduct their LTD payment and pay zero dollar to this person.
Finally, this person pay double premiums and got no LTD payment.
Can this happen?

You can have more than one policy -and collect from both-dependent on the wording.
I have 250 K of critical illness coverage -so I could profit from a serious illness–though I hope I never need to ‘profit’ on the coverage!

A monthly maximum or a lifetime maximum?
What wording should be looking for to find out if this is the case?

Under benefits summary -in the policy book where it lists benefit amounts. You have a very good policy Jammer at 85%–most are less than that!

You can have multiple disability policies and there is a system for determining the primary policy, secondary, etc. How much you can keep really depends on the wording of the policies and how the wording interacts. Typically the primary policy would reduce / offset its months payments such that your income from all sources does not exceed the all sources maximum. This is typically 85%, however, there is no hard and fast rule. It would really depend on the wording and whether you are talking group insurance policies or private insurance policy or some combination.


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.

Based on my own experience in dealing with probably thousands of people who have been denied disability benefits, I believe the 10% fraud number is a vast over exaggeration. Based on my experience I expect it is closer to 2-3%. I constantly see cases that the insurance has deemed to be fraud and I can tell you this is almost never true. They are quick to claim fraud based on video surveillance and online surveillance but those claims almost always are baseless and biased.

I can think of 3-4 cases of real fraud I have seen in 15 years of doing this, and again I am not seeing all the cases…but I am seeing people who are being denied, and many denials because the insurance company claims fraud. We take on these “so-called” fraud cases all the time and are successful with them because we can prove there is no fraud at all. My experience is obviously not scientific, but does show why is why you can’t rely on the insurance industry to identify cases of fraud.

I am extremely sensitive when people nonchalantly assume or believe there is rampant fraud in disability claims because this is a pervasive belief that is not grounded in fact. People see people with disabilities and assume there is nothing wrong because the person can leave the house or God forbid go on a vacation. I am venting here a bit, but I am constantly fighting against this widespread bias.

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I get 60% (the 85% was if CPP-D was ADDED to it and not subtracted like the insurance company is allowed to do).

Hi I appreciate you input and agree mostly with your perspective on this. I would only say I would not throw the judges under the bus here. They have to follow the law of the land and I know many judges find this hard to do in situations where the law favours the corporation and creates harsh results for vulnerable people. I would take a judge any day over the insurance company’s appeals representative or appeal panels that some disability plans will set up.

Insurance company’s allow CPP to not be deductible, its simply that employer’s (who usually pay for the policies) choose not to pay extra for those policies. Some people do have policies where CPP is not deductible - I have send 2 or 3 of these so is very rare. The people to lobby here are the employers because they have the option to buy policies that don’t have CPP deductions but they choose not to.


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.

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I understand that.
I drive my friend who had a stroke and he complains a lot about people that park in handicap parking spots when he sees them walking back to their cars.
I point out that there are lots of not-so-obvious reasons they need that.
I expected him to be more understanding of other people’s issues.
Maybe I have been brainwashed but there is apparently a lot of fraud in the use of disabled parking permits.

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Fraud is 1.5% I’ve researched this yet many are accused of faking or frauding 100% its greed by insurers I believe greatly these companies would rather put you so low you rid yourself from society as a unfunded liability its truly sad and inhumane

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