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If I am on LTD and my group LTD plan from work covers 75% of my pre-disabilty income and they have an "all source maximum at 85%". If I have a separate personal disability plan that I have been paying the premium for years prior to acquiring a group disability plan from work, if the personal disability plan covers a top up amount that would make my monthly coverage reach approximately 100% or my pre-disability income, is that allowable? Or does the group disability plan have the right to deduct the amount from my monthly pay to not reach over 85% of my pre-disabilty income? They are separate plans though and I have had the personal disability plan prior to the group disability plan. Kindly enlighten me on this. Thank you.
There's no easy answer, unfortunately. Offsets are determined by the individual insurance policy, so we would need to review the group LTD policy to determine what income they're entitled to offset, or what makes up the all-source maximum. Some insurance policies do allow for other insurance policy offsets.
If you don't already have a copy, ask yours insurers for a copy of the LTD policies, and if you would like our help reviewing them, you can contact our Disability Specialist - Rebecca, at rebecca.stap@stlawyers.ca and she'll be able to assist (at no charge)
If you don't already have a copy, ask yours insurers for a copy of the LTD policies, and if you would like our help reviewing them, you can contact our Disability Specialist - Rebecca, at rebecca.stap@stlawyers.ca and she'll be able to assist (at no charge)