insurance companies are in the business of generating profits for shareholders. as a result, they often erect roadblocks meant to discourage claimants from pursuing legitimate claims.
in the 2016
audit
by the auditor general of canada on cpp disability, it was found that 60 per cent of 70,000 initial applications were denied. most of the time the reasons for the denial are not immediately clear, leaving applicants confused as to what they need to do in order to actually be approved.
group policies versus private
group policy applications tend to be denied more than private policies, and they also have provisions that change the definition of disability.
usually for the first two years, the ‘test’ is whether or not you’re disabled from performing your own occupation. but after two years, that criteria changes to whether or not you’re totally disabled from performing any gainful occupation that you’re suited by way of education, training, or experience. in this case, an insurance provider could then say you are not able to perform your own occupation, but you can do a lighter type of work and then stop paying benefits.
private disability policies have an advantage since they can be tailored to individual needs. for example, you can have the definition of disability be whether or not you’re able to perform the essential tasks of your own occupation — criteria that continues beyond the typical two years, and perhaps to age 65 or beyond. so if you are unable to perform your own occupation, your insurance company would not be able to require you to work at another occupation in order to avoid the termination of benefits. you can also have a cost-of-living rider added to your policy.