Been on LTD with Sunlife for a few years. First time they requested me to apply for CPP was this November - mid month. Less than 2 weeks from getting application forms and notification that they want me to apply for CPP - my monthly LTD is already deducted almost $1000( I presume an estimate they calculated that I should receive from CPP once I apply and if I am approved. In their literature asking me to apply, they even mention that CPP may take up to 4 months to assess my application for CPP benefits. Many people speak of initial denial of CPP application and the need to file an appeal. Sunlife has stated (feels more like a threat) that even if I don’t apply for CPP they can deduct what I might recieve from CPP.
Look, I fully intend on applying and in an expeditious manner but giving me 2 weeks to apply, and get an answer from CPP - that is far to presumptuous on Sunlife’s part. My next doctor appointment is coming up in December and that is when I anticipated asking my doctor to complete his portion of the forms. I just cannot believe that they are immediately deducting so much without any notification that the deductions would start immediately. I intend to call them but want to know if you can shed any light here. Can they do this? Can they actually deduct immediately upon asking me to apply. What if I am denied… can they still deduct what CPP might have given me if I was approved?
Also, I am overwhelmed by the process. Is there a free service anywhere in Ottawa that can help me weed through the comprehension of all this process? I have read your guides and they are helpful but I am still a little lost - likely due to the cognitive impact some of my prescription drugs and condition are causing.
That is dirty of them. It all depends on what your policy wording is. A lot of policies do have the right to estimate–but typically will not deduct unless you refuse to apply.
Did they send you forms seeking irrevocable consent to pay an Insurer? It may be because you did not sign that and send back. ( It is up to you if you sign it-I did not)
Call and find out or send them an email (better) at your shock of a reduced payment, the added stress and to reconsider.
Sunlife had me sign forms that I would apply for CPP-D and they would not deduct.
My application for CPP-D took 4 months to be approved.
I have heard of appeals taking over a year.
I doubt it would be less than 4 months unless the person is dying.
As soon as I got approved, sunlife deducted way too much from me for Nov and I still haven’t got paid CPP-D.
They are in a hurry it seems.
I am also in Ottawa and I’d help you but I have my own cognitive problems.
Definitely write how your cognitive difficulties make it impossible to work (be specific about what you can’t do).
Remember to always think in terms of not being able to do ANY job because of x.
Usually you get a family member or friend to help.
I was able to do my own at the time (it took me 2 months I think).
Maybe your doctors know of a place that can help.
Maybe March Of Dimes?
Insurance companies seem to be able to do what they want.
In this case I think they legally can.
They do lots of illegal stuff too and it is up to the person to sue I guess.
I’m not a lawyer so I would get the free consult from Resolute to see what your options are.
The short answer is, probably yes, most insurance policies are worded in a way to allow them to estimate and deduct. They have to reconcile it back with you later in the event their estimate was too much (they pay you back) or too little (you have to pay more).
We are seeing insurers get MUCH more aggressive with this over the past few years. This was unheard of years ago. You would have to have your insurance policy examined to determine if what they are doing is legal, but I expect they do have the authority to do it.
David Brannen
Disability Lawyer with Resolute Legal
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