Long-term disability policies vary greatly from one to another and your policy may have certain benefit deductions, including the deduction of your Canada Pension Plan (CPP) benefits.
LTD policies may allow the insurance company to deduct your CPP benefits in several different ways, including:
- Deducting a portion of CPP benefits or the entire amount
- Deducting only your own benefits or they may include your children’s benefits as well
- Making deductions before or after tax (net or gross income)
Often your LTD benefits can also be reduced by the amount payable to your dependants. One very common example of this is the deducting of benefits payable to the children of a person receiving CPP Disability.
Those three are some of the most common deductions, but they (and others) may or may not apply to your case. No two disability policies are the same so you may want to contact a lawyer experienced with disability insurance to help you determine whether you are receiving the benefits you are entitled to.