Should You Apply For Both LongTerm Disability (LTD) Benefits and Canadian Pension Plan Disability (CPPD) Benefits?
Original Source URL: https://tonylafazanis.com/2021/05/12/should-you-apply-for-both-long-term-disability-ltd-canadian-pension-plan-disability-cppd-benefits/
Many people are confused about the differences between LTD benefits and CPPD benefits and how it applies to their particular situation. You may even be instructed by your LTD insurer to apply for CPPD and be left wondering whether you should, or must, apply.
What are the Differences?
LTD insurance is either provided to an employee in their group benefits plan or purchased privately by an individual. The insurance protects an employee from loss of income in the event they are unable to work due to injury, illness, or accident for a period of time beyond Short Term Disability (STD) or Employment Insurance Sick Benefits. There is a 2-year time limit to sue the LTD insurer from the date benefits should have been paid.
CPPD is the
largest long term disability insurance program in Canada administered by the
Federal Government. CPPD benefits provide partial income replacement to
people who have made enough contributions to the Canadian Pension Plan (CPP)
and who are disabled and cannot work at any job on a regular basis. Benefits may
also be available to their dependent children. To qualify for a disability
benefit under the CPPD, a disability must be both “severe” and “prolonged”, and
it must prevent you from being able to work at any job on a regular basis.
LTD and CPPD both are intended to protect or
replace your earnings when a disability prevents you from working. A disability can be caused by anything.
Included are an accident, illness, sickness, physical or mental health symptoms.
How to Do CPPD and LTD Work Together?
LTD insurers often require you to
also apply for CPPD, to try to reduce or eliminate the amount they must payout. This is because LTD providers generally create their contracts, such that
an injured worker's benefits are decreased by any amount paid by CPPD. For example,
if your LTD claim is approved for $2,000 a month, and you are also approved for
CPPD for $1,000 a month, you will not receive a total of $3,000. Your
actual total monthly benefits will remain at $2,000 - your monthly LTD
obligation amount would decrease according to a mathematical formula.
Should I apply for CCPD in addition to LTD?
Yes. You may wonder whether there is
a point in applying for CCPD if their LTD benefit is just going to be reduced.
However, there are a few reasons why you should apply for both:
· If you do not apply for CPPD, the
LTD provider may reduce your LTD benefit by a notional estimated CPPD.
· An LTD provider may argue that a
claimant has breached their contractual obligation by not applying for CPPD and
stop the LTD benefit.
· Having a successful CPPD application
means you have proven to the government that your injury is severe and
prolonged. Thus, it would be harder for the LTD provider to argue that your
disability is not serious enough to prevent you from working.
· If you have a successful CPPD
application, you will at least get these benefits if your LTD benefits are
denied.
If you are struggling with the
applications for your LTD and/or CPPD, an experienced disability lawyer will be
able to assist in interpreting the terms of your policy, assist with the
application process and put you in a better position to collect benefits.
What can I do if my CPPD application is denied?
If you disagree with the decision,
you can request a review. This must be done in writing within 90 days of
receiving your decision letter. If your CPPD application is denied, an LTD
provider cannot reduce the LTD benefit by an estimated CPPD because you did not
receive it.
Contact An Experienced Disability Lawyer
If your LTD or CPPD application was
denied, or your benefits were cut off, you should contact an experienced
disability lawyer. This could lead to a significant claim if the provider
denied a legitimate benefit application. Alternatively, the involvement of a knowledgeable
lawyer could cause the provider to reinstate your benefit.
If you feel that you or a loved one
has been wrongfully denied an LTD or CPPD claim, please contact Tony Lafazanis. Don't take risks with the insurer
or the Court system. Time limits apply. Let Tony fight for you!
Hiring Tony Lafazanis is risk-free. There is no legal bill to pay if there is no settlement.
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Sources:
https://www.canada.ca/en/services/benefits/publicpensions/cpp/cpp-disability-benefit.html
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