Add Comment Question: I have been on LTD for two years and classified ' permanently disabled' . I paid for my work LTD coverage my self and therefore do not pay income tax on my benefit pay. My insurance has asked me to apply for CPP Disability pay and if approved would have to pay tax on the CPP disability benefits. Can the Insurance Company force me to apply for the CPP benefits and can they terminate my (tax free benefits) if I refuse to apply. I only have 10 months of LTD benefits left due to policy termination at age 65. Answer: Typically, most LTD policies give the insurer the right to request that you apply for CPP Disability. They often state something like if you don't, your insurer can estimate what they think CPPD would pay you, and reduce your payments by that amount. For the tax aspect, I'd recommend applying for the Disability Tax Credit (DTC) and that should offset the tax implications. I suggest connecting with True North Disability Service as they specialize in the DTC, and will be able to assist you through that process. You can reach them directly here: https://qualify-today.tnds.ca/referral/?referral_source=1376087000639555740 Your Comment * Your Email * Your Name * Your City Note, your name, city and email is not displayed on the website. It is used to notify you that we have approved your comment.