Wanting to transition out of disability - How much information to disclose with Insurance company?

Disability Insurance
1

Hi,

I am coming to the end of my 2 year period for LTD and my case manager for insurance company has shared with me a list of questions that I need to answer. One of the questions is whether I worked during this period of LTD. Another is about whether I left the Canada for any trips abroad. They have informed me that if I dont respond within a few weeks, they will close my claim.

My questions are:

  1. Is there a limit on the number of questions that insurance companies can ask for evaluating my situation?

  2. Do I have to share information about my working history during the LTD?

  3. If they do close my claim, does it mean that I have to go back to work with my employer. I do not want to go back to work for my old employer and would like to resign and I have already found another work to do. How do I deal with this situation? Should I just allow my claim to be closed and then resign from my old job?

  4. Can I be held legally liable if I withhold information from my insurance company? Can they take me to court?

I am in the process of transitioning out of disability and I would appreciate your feedback on these questions.

Hopeful

1 Like
2

My 2 cents:

  1. No, but you can refuse to answer and risk having your claim closed.

  2. Yes, or risk having your claim closed and it raising a whole lot of red flags to your insurer.

  3. The insurer closing your claim and you having to return to your employer are independant of each other.

  4. Not likely. They only reason, I believe, they would take you to court is if they believed you had been working while you were receiving LTD payment, and they want their money back. They would also try recoup any legal fees that taking you to court cost (which will be huge $$$). If you weren’t lying about not working while on LTD then you have nothing to worry about. If you were working while on LTD without their knowledge I would tell them immediately before it completely blows up in your face.