Taking another job while being on LTD

Hello everyone,

I am currently on LTD for a few years. A few months ago I decided to travel to a different country because I wanted to try different treatment options. During my stay here with the treatment, I have noticed some improvements which I wasnt noticing while during treatment in Canada. My insurance supported me for a while but now they have stopped my payment since I am outside of Canada. They are saying that, in order for them to continually support me, I have to come back to Canada. Now here are my questions.

  1. With the current treatment, since I have noticed improvements, I am planning to stay here lfor a while and continue the treatment. Since they have stopped my payments, can I apply for a job and start working? How do I make a case to the insurance company that I need to work so that I can support my self financially and continue the treatment so that i can continually have improvement in my condition. The insurance company will ask that if I can work here, then why cant I work in Canada.

  2. If I withdraw money from my RRSP to financially support my self, will that has any impact on the disability allowances I have received during the year?


I would really appreciate if someone could please respond on this. thanks

RRSP withdrawals don’t affect your disability, only income from working does.

I can’t answer #1.

If they are not paying you, you do not need to disclose if you are working.
If things don’t work out and you return to Canada I would think that you would need medical documentation to continue your LTD benefits; but, hopefully you will be better!

Let me start by commending you on working to get well. I am glad to hear you are feeling better.

The insurance company won’t care about any of what you mention. They have a clause that says they don’t have to pay if people are out of the country longer than x months. So, they are just relying on that clause. Also, if you demonstrate capacity to work…it doesn’t matter if you are there vs in Canada. They won’t look at your geographic location as a factor…you can either work or can’t work is how they will view it. Geographic facts are not a consideration.

Keep in mind, one they stop paying you will have a time limit to appeal the decision after which you will lose all rights. That time can be as short as a year in some policies, but is often 2 years. You would need to get specific legal advice on that.

David Brannen

Disability Lawyer with Resolute Legal

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