Question re: taking early retirement


#1

I know there has been info on this topic but I just wanted to clarify something.
If I decide to take early retirement (defined wk pension) due to a poor prognosis. I know it can take up to 4 months to receive the first payment of my pension upon letting them know Also, upon deciding to do this, HR would be informed plus the insurance company.
So my concern is this: Would the insurance company suddenly cut me off of LTD upon finding out I am going to retire. It would be disastrous if this happened and I had no income for several months. I have passed the 2 year mark and my LTD will continue up to 65 unless there is an update that does not meet the definition of perm. disabled - unlikely. I don’t want to set off potential red flags by asking my caseworker - would that even happen.
Thanks for your imput.

Thanks for your thoughts


#2

Any mention of retirement is a MAJOR RED FLAG for the insurance companies. Under some LTD policies a “retirement” will trigger an end to LTD benefits, even if you otherwise continue to meet the definition of disability under the policy. You need to get legal advice on your specific policy and the implications of retirement.


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 reliable 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.


#3

Hi David
Re: early retirement: I contacted my HR and she said that Manulife has never cut off anyone directly upon finding out they are taking early retirement from LTD and she has been working for our company for 16 years. She said that maybe insurance co. has different contracts with different people. So I don’t know what to think. Not sure about the severance piece either - just found out that if I am unable to go back to work, the termination of my employment will probably be the end of Oct or Nov = my update and they do offer a severance package but I believe that will go to the insurance co.


#4

Does your policy say specifically that the insurance company gets your severance?
I think it is yours.


#5

I looked again and I could not see it but it did say any payments/income from my employer.


#6

When/if you get severance ask them.
If they think they are entitled to it and it is a lot of money, you may want to get a lawyer.
I would argue the severance is for your employment before you started getting LTD.
Don’t think about it now. :slight_smile: