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I receive LTD at 66.7 % of my monthly income. I also receive CPP monthly payments that the Insurance company deducts dollar for dollar, so I still only receive 66.7% of my monthly salary. I have an all source maximum provision in my plan which states that it limits the monthly amount of income I can receive from all sources while I'm disabled. It states that it means that "if other sources of income plus my LTD payment add up to more than 85% of my monthly pay before I became disabled, they'll reduce my LTD payment with the excess amount. My question is that I want to know if they should be taking the full amount of CPP disability, or should they only be deducting an amount that still allows me to have 85% of my income prior to disability rather than them deducting the full CPP entitlement. I guess I'm interpreting it as I should be allowed to have 85% of my income before I was disabled, and they are still only allowing me to have 66.7% based on my plan. Is this correct, or am I totally wrong on the meaning of this 85%? Thank you.
The all-source maximum term would only be a factor in this analysis if there wasn't also a direct deduction term regarding CPPD. Direct deduction terms allow the insurer to deduct something, such as CPPD, as you said, "dollar-for-dollar" (or, directly).
Most policies allow for a direct deduction of CPPD, but you can certainly ask your insurer to send you the term they are relying on to do this, to make sure it's all kosher.
Most policies allow for a direct deduction of CPPD, but you can certainly ask your insurer to send you the term they are relying on to do this, to make sure it's all kosher.