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I urgently need to ask just 1 question. I’m willing to pay for the Disability Lawyer’s time—Please tell me how to pay.
My question is about how to answer the question “Are you receiving any other income?” My Sun Life (SL) insurance policy mentions a definition regarding “rate of earned income.” The LTD provision mentions deducting “disability income or retirement income from other sources” from the monthly LTD payment. However, I can’t find any definition of “income” or “any other income” either in the definitions section or in the LTD provision of the SL contract.
When SL used to send a yearly paper form, it had a section called “Confirmation of all other income you are currently receiving” & a sub-section under that called “Any other income (e.g., from other insurance companies, legal action, etc.).” I always checked off the box for “No” because I understood that my Inherited Assets were Assets (& not income). The instructions given to the financial institution were to grow the Inherited Assets without causing too many expenses & I’ve never taken any money out to use as income. Unfortunately, another relative died, so I will be having another (small) inheritance. It didn’t even occur to me (until now) to consider the insignificant nominal bit of interest on my bank accounts—a total of less than $20 last year for all of my bank accounts put together.
SL sent me an electronic yearly update form (administered by The Claim Lab). This electronic update form asks the question: “Are you receiving any other income?” I have been answering “No,” as I used to answer on the paper form, for the same reasons as I gave for answering “No” on the paper form.
Because Tax time is coming, my mind is occupied with locating papers to take to the Tax preparer. Now I’m starting to worry that maybe I should be including the information from my Inherited Assets’ Tax slips—even though I’ve never taken any of the money out to use as income.
Please tell me if I should answer “Yes” to the electronic question “Are you receiving any other income?”
If I should change my answer to “Yes,” should I send some type of explanation to SL? Would it help to hire a Lawyer to write something for me? OR is that something that should wait until such time as SL contacts me?
Thanks very much for helping me with my question about “any other income.”
As you mentioned, generally, inheritance is not classified as income. Under the vast majority of LTD policies, an inheritance should not be deductible.
You can check your policy for the offset provisions that would explain what type of sources your insurer is allowed to use to reduce your payments. Ensure you have a copy of the full policy (as opposed to a benefit summary) as the policy is what is legally binding. You can ask your case manager to send you this.
If you do choose to report it to your insurer, and they try to claim a deduction, please contact our firm right away and we will help.
You can check your policy for the offset provisions that would explain what type of sources your insurer is allowed to use to reduce your payments. Ensure you have a copy of the full policy (as opposed to a benefit summary) as the policy is what is legally binding. You can ask your case manager to send you this.
If you do choose to report it to your insurer, and they try to claim a deduction, please contact our firm right away and we will help.