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OMG! The Insurance Company Owes Me Money!

post #1 of 14
Thread Starter 
I found out today that the disability insurance company has been paying me based on 27 hours per week, when in fact it should have been based on 31 hours per week.

I calculated the amount owing to me if they do owe me money.

I forget the exact amount that I was making in July 2004 when I went off sick. But it was around $28.00/hr. I think it was a bit more, but I used the $28 figure.

$28.00 x 60% = $16.80/hr

$16.80 x 4 hours/wk = $67.20/wk

$67.20 x 52 weeks = $3,494.40/yr

$3,494.40 x 3 = $10,483.20/3 years

$67.20 x 8 weeks = $537.60

Total owing: $11,020.80



I hope my calculations are right!!!
post #2 of 14
OMGOMGOMG!!!

How did you realize this!?
post #3 of 14
Thread Starter 
I had no clue.

My case manager for my disability claim asked the hospital for clarification as to the number of hours per week a 0.8 position works out to be. They came back and told her it was 31. She said that their computer at the office was telling them it was 27, and then looked at me and said "I think we owe you some money." So I sat down when I got home and did the calculations, and those are the figures that I came up with. I called my brother and he said that sounds about right. And he gave me some great advice.

That amount of money is going to put me into a whole different tax bracket, and I'll end up paying Revenue Canada thousands of dollars for taxes this year. He advised me to take out some RRSPs with it, that way it will lower my income and I won't have to pay the tax on it. If I don't do that I'll end up losing most of it to taxes.
post #4 of 14
Oh Linda, I hope you're right!
post #5 of 14
I hope you're right. that would be wonderful.
post #6 of 14
That's just wonderful news, Linda! What a windfall!

Maybe now you'll be able to buy that new car you've wanted!
post #7 of 14
Wow, what fabulous news!!! I'm so pleased things have really turned around for you, you must be over the moon
post #8 of 14
That is great news! I have begun the process of seeking Social Security Disability Income and if things go right, they will owe me a retroactive lump sum payment large enough to pay off my mortgage AND become completely 100% debt free. *sigh* Let's hope some of your good fortune rubs off on me!
post #9 of 14
^It'll at least take you two tries. Many are incredibly disable, yet will even be denied 3 times with some lame excuse that the person could still work some sort of job (like what little that could be done would pay their bills and medical...) Cut your losses and get a good lawyer now. Make sure you know every little thing that is in your medical files, a negative doctor's note can hurt your case.



As for company paying $11k, don't hold your breath. I bet they'll find any way they can to get out of paying most of that money. Though any money out of them will be better then none. But then again my husband accuses me of being a pessimist - I prefer to be considered a realist.
post #10 of 14
Thread Starter 
Quote:
Originally Posted by strange_wings View Post
As for company paying $11k, don't hold your breath. I bet they'll find any way they can to get out of paying most of that money. Though any money out of them will be better then none. But then again my husband accuses me of being a pessimist - I prefer to be considered a realist.
If they do owe me money, they have to pay. If they don't my nursing union will be all over them.
post #11 of 14
CONGRATS! I hope you recover the unpaid amount quickly......talk about a "SAVINGS PLAN"!!!!
Linda
post #12 of 14
If $11,000 is enough to put you in another tax bracket, you must have been getting a good chunk of money on disability. Will any of this have an effect on your bankruptcy that you just filed?

RRSP's will certainly help with the income tax but that basically means you won't be able to use any of that money until you retire at or past age 65 - otherwise as soon as you collapse the RRSP you pay the taxes on it.

They get us coming and going.
post #13 of 14
Thats good news for you but also its kind of sucky that the taxes are going to take a bit out of the money. Would you still receive the money yet this year?? Perhaps they could pay half this year and half the beginning of next year??
post #14 of 14
Thread Starter 
Quote:
Originally Posted by Yosemite View Post
If $11,000 is enough to put you in another tax bracket, you must have been getting a good chunk of money on disability.
Not really.

My disability is taxed. So any money I get from them I have to pay taxes on. So I can pay it now and lose a good chunk of the money to taxes, or I can stick it into a tax sheltered RRSP and "hide" it and not pay taxes on it right now, and when I do take it out when I'm 71 years old, it will have grown considerably, plus I'll be eligible for age related deductions that will also help lower my taxes payable.

Quote:
RRSP's will certainly help with the income tax but that basically means you won't be able to use any of that money until you retire at or past age 65 - otherwise as soon as you collapse the RRSP you pay the taxes on it
Yes. That's right, but as I said above, when I do take it out when I'm retired, not only will I have more than what was invested, and while I'll have to pay taxes on it then, I'll also be eligible for age related deductions which will also help lower the amount of taxes I will have to pay on it.

Quote:
They get us coming and going.
Yes, they sure do! You have to pay eventually, it's just a matter of when and how much.

So far as the bankruptcy is concerned, that's over and done with. I've been discharged and I no longer have to declare my income and expenses to the trustee. So they get no part of that money. However, if I were still in bankruptcy, the Trustee would take 75% of it.
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