I have been on LTD since Apr 2019 (STD Oct 2018) and that period ends Oct 2020 (two year period). I recently received a letter from Canada Life requesting that I apply for CPP disability. The letter also states if I do not apply, then they will automatically deduct what they feel I would earn on CPP disability from my insurance payment each month. My question - are they able to do this? If I collect regular CPP (not disability), do I need to inform my Insurance? I have been collecting regular CPP since June 2019. This notice of disability was just received with just under eight months of LTD remaining.

Excellent questions. Yes they are allowed to ask you to apply for CPP Disability and if you don’t apply they can estimate what you should be getting and deduct it from what they pay you. CPP is not as straightforward. For the insurer to claim credit for it your LTD policy must specifically allow them to do so. Check your policy to see if there is a provision that entitled them to a credit for any pension you are entitled to receive, or are receiving. If there is such a provision then they may claim credit for the CPP you are receiving but many policies don’t have such provisions so definitely check your policy.