I have been on LTD since Jan 1 of this year. I am receiving 50% of my previous income and the policy states I can make 85% of my previous income before the benefit payment gets clawed back. The insurer made me claim vacation pay which was accrued from July 01 2024 until Dec 31 2025 because it wasn't paid until the first week of 2026. So obviously 1 month of benefit payment was almost completely clawed back. Seems very unfair. Why are they allowed to do this?
Also, they have informed me any RRSP withdrawals must be reported as well. Why are insurers allowed to count RRSP withdrawals as regular income?

Thanks, Steve