I am currently receiving LTD. I am also receiving my CPP ( since age 60 while still working). My LTD policy covers me for permanent disability, for my "own job' for up to 2 years, and terminates at age 65. I am currently 64 years old. The insurance comapany is demanding I apply for CPP disability benefits. Can they demand this? Do I have to apply for disability benefits through CPP?

Typically, an insurance policy gives the insurer the right to offset your LTD benefit by any benefits you receive from CPPD, while on LTD. If you refuse to apply, they may be entitled to reduce your benefits by what they THINK CPP Disability would pay you.
However, if you're already receiving CPP retirement, there is typically a time limit to convert that to CPP Disability - which is often 15 months.
I suggest asking your case manager, in writing, where in the policy does it state that you need to apply for CPP Disability as you're already receiving CPP Retirement.
If you still have questions or concerns, please reach out to our disability specialist, Rebecca, at rebecca.permis@stlawyers.ca and she will assist.