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The obvious answer to this question is that you need a source of income.  But what happens when you are medically unable to work and the insurance company refuses to pay you benefits on the long-term disability policy?  The long range solution is to retain David Share Associates to fight the insurance company decision and win a settlement payment.  There are, however, a number of short-term options, besides accumulating debt or high credit card balances.

First, be sure you have made all possible claims: employment insurance sickness benefits, short-term disability plan payments, Ontario Disability Support Program, Canada Pension Plan for disability, insurance taken on loans (including mortgages) and other debts (especially credit cards) or life insurance premiums coverage.

Timing of the application can be crucial.  Obtain all necessary forms immediately so you can take the time needed.  Once submitted, follow-up with a call or visit the local office to ensure the file is in process.  And always keep copies of the documents and reports submitted.

Secondly, do you have non-core assets that can be sold?  An investment property, unworn jewellery, sports equipment you can no longer use?  What about a recreational vehicle?  Further, can you downsize to reduce or even eliminate some monthly costs? 

We realize that these are often painful actions.  And they take a toll on your scarce energy.  Just keep repeating that being proactive and facing the monetary issues is much less stressful than having to react to an immediate crisis.

There is also the possibility that you may qualify for social assistance payments. 

None of these scenes is pleasant nor fun. Try to remember that the financial problems are secondary to the real concern- that you are medically unable to work.  The reasons for your lack of funds are beyond your immediate control.  There is a resolution at the end of the tunnel- the hardest part can be making it through. 

By Shira Bernholtz B.A., LL.B.

Client Services Lawyer, David Share Associates, Lawyers

Yes, they should be paying your Long Term Disability Benefits.  But in the meantime you still have to eat.  When the savings have been used, borrowing tapped out and credit at its limit, social services is an option to consider.

In Ontario, social services (welfare) is an "income of last resort".  You can have a certain level of assets but nothing more.  There has to be no income to the family unit, or at least a low enough income to meet the criteria (based on number of family members and age).*  They demand a lot of documentary evidence and personal information.  The first application is to Ontario Works (OW).  However, the object of this program is to get a person back into the workforce.  Obviously, this is not possible when you are medically disabled.  So you also apply to Ontario Disability Support Plan (ODSP).

ODSP is also a social services but for those medically unable to work.  The monthly benefit is higher than that of OW and there is no requirement that a recipient be looking for work or retrain.  You do have to submit medical forms and documents in addition to financial information.

Besides a monthly monetary payment, ODSP provides a drug benefit card and additional payments throughout the year if you qualify.*   For example, clothing allowances for growing kids or for special diets.  There may also be transportation funds to school or medical appointments.

You do have to repay both OW and ODSP if you receive a long-term disability settlement which covers the same payment period.  Usually the matter runs as follows.  OW approves your application (financial criteria) while you are waiting of the ODSP review of your medical information.  ODSP eventually approves your application, backdating the start of payments.  This means that ODSP pays back OW and provides the difference in the monthly amount to you.

When DSA negotiates a settlement against the insurance company for Long Term Disability benefits, there is an obligation to repay ODSP for any overlapping time.  Most of the time our office has been served with a notice requiring that payment be made directly from us as a deduction form your net receipts.  In any event, you are under a positive obligation to notify ODSP of your settlement and provide repayment is applicable.

*Details of criteria, limits, ceilings and benefit programs change according to politics, social attitudes and the economy.