My LTD Insurance Company is asking me to apply for CPP Disability Benefits – What should I do?

If you are receiving long-term disability benefits from your Long-Term Disability (LTD) Insurance company, your disability case manager may ask you to make an application for Canada Pension Plan Disability. This is a monthly disability benefit paid by the Government of Canada to eligible Canadians who are disabled.

Why am I being asked to apply?

Under most LTD group insurance plans, the insurance company will get a direct credit for any CPP Disability benefit that you receive. That means they are entitled to reduce your monthly LTD benefit by the exact amount you receive from CPP Disability. Thus, they want you to apply so that it reduces the amount they are required to pay you under the LTD policy.

Do I qualify?

To qualify for CPP Disability, you must have made payroll contributions to the Canada Pension Plan in 4 out of the last 6 years leading up to your date of disability (in some rare cases they will accept 3 out of the last 6 years). You must also be deemed by Service Canada to suffer from a severe and prolonged disability. “Severe” means that your disability prevents you from regularly working in any type of occupation. “Prolonged” means that your medical condition is deemed to be permanent or indefinite in duration. Usually the LTD insurance company will only ask you to apply for CPP Disability if they believe your symptoms may not improve in the near future.

Should I apply?

I always encourage my clients to apply for CPP Disability benefits regardless of their age and the nature of their disability. If you are approved, that means the Government of Canada has accepted that you are totally disabled from working in any capacity, which is strong evidence that you are disabled. Also, if your application is accepted, you will have some money to survive on in the event the insurance company unfairly cuts off your LTD benefits.

What happens if I refuse to apply?

The majority of LTD group insurance policies contain a clause which will punish you for failing to apply. The language states that if you don’t apply for CPP Disability the insurance company can estimate the amount of CPP Disability benefits that you would receive if you applied and were accepted.  They will then reduce your monthly LTD benefit by this estimated amount even though you are not actually receiving it. Thus, it is almost always in your interest to apply for CPP Disability benefits even though you are already receiving LTD benefits.

How do I apply for CPP Disability?

There are two ways to apply for CPP Disability benefits. You can print the forms from the government website and submit the paper application by mail or drop it off at a local Service Canada office. If you don’t have a printer, you may be able to pick up an application form from a Service Canada office.

The second way to apply for CPP Disability benefits is online through the Service Canada web portal.

Further information on applying for CPP Disability benefits can be found at the Service Canada website:

https://www.canada.ca/en/services/benefits/publicpensions/cpp/cpp-disability-benefit/apply.html#Submit_paper

The insurance company is asking me to sign additional forms. Should I comply?

If the LTD insurance company is asking you to sign any additional forms regarding CPP disability benefits, it is very important that you consult with a long-term disability lawyer to make sure that you know your rights.  The forms may be wholly inappropriate and place additional obligations on you that do not exist under the terms of the insurance policy.

Disability Lawyer Mark Yazdani

If you have any questions about applying for CPP Disability benefits, or if the insurance company is asking you to sign additional forms, contact my office for a confidential, no-charge consultation about your rights.

Likewise, if your CPP application has been rejected for any reason, contact me to discuss your options in filing an appeal or being represented by a lawyer at the Social Benefits Tribunal.

Mark Yazdani
Disability Lawyer
416-630-8880
1-877-311-8880
info@disabledlaw.ca