Severance and LTD - Manulife

Disability Insurance
1

My company has just frustrated my contract and sent me a severance. It seems that Manulife wants 100% of what I got. Are they entitled to that? I have been on LTD “any occupation” for the last 2 years, and 4 years since my last worked day. However, of the replacement income, Manulife now only accounts for about 45%, because they deduct CPP-D and the CPP Child benefits. So are they really entitled to 100% of the severance? The total is about 1 year of what Manulife pays. I have about 14 years before retirement, so I am reliant on them for awhile.

I get a run around when speaking to the customer service, so I have asked for my specific contact to be sent to me. After speaking with 4 people, they said they will have my case manager contact me. But they seem reluctant to give me the documents. I will wait to see what they provide. I guess it will come down to what is written, as it should be clear in the contact that they can show me in writing, and not just something they send written by the case manager.

Thanks.

2

I’ve been told by two LTD lawyers that the LTD Contract must specifically state that severance is offsetable/deductable from LTD payments.

Demand to be provided the contractual documentation where it states that they have rights to your severance. If it’s worded ambiguously then they don’t have a leg to stand on.

I recently went toe to toe with one insurance company to help a friend keep their vacation payout. I also just did the same thing for someone else on severance payout. I’m no lawyer but I destroyed both case managers within 10 minutes and they folded.

3

I just checked my benefits booklet, severance pay is excluded as a deduction. So definitely make them show you the language.

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