Inflation is Decimating Long-Term Disability Payments: What You Can Do
Long-term disability (LTD) payments don’t increase with inflation in many cases. Even if your LTD benefits adjust for inflation according to the Cost of Living Adjustment (COLA), you’re probably worse off than you were before.
With Canada’s sky-high rents and cost of living, anyone on LTD payments is feeling the pinch.
Here are some practical steps you can take to manage the impact of inflation on your LTD payments.
4 Things to Do if Inflation is Eroding Your Long-Term Disability Payments
1. Review Your Disability Policy
The first step in protecting yourself against inflation is to thoroughly review your LTD policy. Look specifically for any clauses related to COLA.
COLAs are designed to increase your disability benefits periodically to match inflation rates, although not all policies include them.
If your policy does have COLA, understand how it’s calculated and when it’s applied. If you find that your policy lacks this feature, consider contacting your insurance provider to discuss potential options for policy modification.
Don’t be surprised if your insurance company pushes back on your request, even if you have COLA. Insurers are incentivized to keep payments to a minimum, which is why having a long-term disability lawyer can make all the difference.
2. Consult with Long-Term Disability Lawyers
Legal advice will be crucial when dealing with LTD benefits. An experienced disability lawyer can help you understand the intricacies of your policy.
For instance, if your insurer has previously adjusted benefits for other clients under similar circumstances, your lawyer can use this precedent to strengthen your case. They’ll not only help you interpret the fine print of your policy but also guide you in gathering the necessary documentation to support your claim.
Long-term disability lawyers can negotiate with insurance companies on your behalf, file appeals, and consider other legal avenues.
3. Explore Government Assistance Programs
In Ontario, residents dealing with the financial strain of disability in times of high inflation have several targeted assistance programs at their disposal.
Programs like the Ontario Disability Support Program (ODSP) or Canada Pension Plan Disability provide monthly financial assistance which includes an inflation-adjusted cost of living increase to help cover essential expenses.
The eligibility criteria for these programs can be stringent, which is why it’s best if you work with a long-term disability lawyer for your application.
4. Maximize the Tax Credits and Government Benefits You Are Entitled To
Both the federal government and the Ontario provincial government offer various tax credits specifically designed to help individuals with disabilities manage their financial burdens.
The Disability Tax Credit (DTC) is a non-refundable tax credit that reduces the amount of income tax you may have to pay. If you qualify, you can also claim the DTC retroactively for up to 10 years.
Ontario also offers numerous tax credits and benefits for people with disabilities. Programs like the Ontario Disability Support Program (ODSP) offer income support, and the Ontario Drug Benefit Program can help cover prescription costs.
You may also be eligible for assistance through the Home and Vehicle Modification Program, the Assistive Devices Program, and dental care services under ODSP.
Reach Out to a Leading Long-Term Disability Law Firm
Navigating the economic turbulence caused by inflation while on long-term disability requires a proactive approach.
This is where an experienced team of long-term disability lawyers comes in. We have a proven track record of successfully negotiating with insurers. We’ll work to safeguard your future and ensure that your disability payments provide the support you truly need.
Schedule a consultation today.
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