Disability benefits from the Canada Pension Plan (CPP) are government-sponsored and administered benefits available to all Canadians who make contributions into the plan, usually through source deductions from your pay cheque.
CPP is not to be confused with LTD (long-term disability) which is private insurance available through Group Insurance Benefits, usually through a workplace, or group association or by purchasing a private policy from an insurance company.
Most Group LTD policies provide for CPP benefits to be deducted from the gross amount they are required to pay. Many insurance policies say they can estimate the amount you are entitled to and deduct the amount if you never apply for the benefit, so you should apply for them if you’re on LTD, in most cases.
Most Private policies that you have purchases through an insurance company do not deduct CPP from the amount they are required to pay.
Are CPP And LTD Taxable or Non-Taxable?
Can You File Disability Claims With CPP And A Group Insurance Plan?
Yes, you can definitely submit applications for both. As to the timing of the applications, that may depend on the nature of your disabling condition and the prognosis for future recovery.
Why Would My Insurance Company Tell Me To Apply for CPP Benefits?
You may be obligated to apply as part of your policy requirements.
In some cases, the interrelationship between the LTD industry and the CPP rules can be confusing and it may be difficult to know whether your insurance company is handling potential to CPP entitlement correctly. It is important to discuss this with one of our experienced lawyers. Here at Share Lawyers, we have experience with both CPP and LTD.
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This searchable database contains information about disability, critical illness and life insurance claims, and what you can do if you are denied or cut off of your benefits. It is a collection of the most common questions we receive from our clients. General answers have been provided by our lawyers.