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I am approved for long term disability but not receiving benefits from the insurer because i am receiving wage loss benefits from worksafe. If I retire from my job and collect severance while on my worksafe claim (worksafe doesn’t deduct employer benefits or other income while on wage loss in my province) before transitioning to long term disability, will blue cross retroactively consider the severance that was already received while on worksafe, as income and then not pay me for several months to account for that income. the ltd policy does say it considers all income and deducts it from benefit payments but it doesn’t clarify if it can retroactively consider income already received
Generally, your insurer would consider any income that you receive while you're on a disability claim (regardless of receiving monthly benefits or not). If you're on claim now and you're given severance, your insurer would likely receive credit for such retroactively, provided it was during the time you're also "receiving LTD benefits". As this is a bit of a complicated situation, I'd invite you to contact our Disability Specialist, Rebecca, at rebecca.stap@stlawyers.ca or 1-844-661-9065 x132, if you have further questions.