There are some insurance companies will not pay what they owe about 10% of the time because they know most people aren't going to bother hiring an attorney for what they typically cost.

thanks you very nice people would like to know got a letter today from hubby benefit company and we get the first payment into our account on the 6th of oct

will make note of the info and will apply it thanks again

To convert monthly to bi-weekly, divide by 2.165. Or multiply if going the other way.

Pay off your credit card. It's 10% after tax, while the bank interest is only around 1% before tax.

Hi Janis,
I am glad that things are getting resolved.

he is classed as the iii disability insurance plain and we are going to check with them cause if we do have to pay tax we have to set up regular payments to revenue Canada Also need to ask you guys one more thing because the payment is coming monthly and we are use to being paid bi weekly any help on how to re budget our monthly budget so we don't run out of money And the credit union is letting us skip one mortgage payment so we were going to put that money in savings or should I use it to pay off a credit card The credit card has a 10% interest rate

Yes, they are taxable under Section 6(1)(f) of the Income Tax Act. Not sure what kind of plan your company has with Great West Life. Interpretation Bulletins are elaborations and rulings made by Canada Revenue to explain how they treat benefits and what medical expenses can be deducted to reduce taxable income. See Interpretation Bulletins IT-54, IT-85R2, or IT-428.

Which of the 3 categories below your Great West Life Plan falls under, I can't say. You may have to call CRA or Great West Life for clarification.

(i) a sickness or accident insurance plan,
(ii) a disability insurance plan,
(iii) an income maintenance insurance plan, or
(iii.1) a plan described in any of subparagraphs (i) to (iii) that is administered or provided by an employee life and health trust,

http://laws-lois.justice.gc.ca/eng/acts/I-3.3/page-3.html

Anyhow, the benefits are taxable just like CPP disability benefits, or any other wage loss plan like EI. BTW: Depending on the severity of your husband's condition, he might qualify for the Federal Disability Tax Credit if he has a listed condition.

with this benefit amount our total monthly income including mine after my taxes and other stuff am I payin into is $4087 a month but 1950 is having nothing taken

got hubby boss involved he left and message and finally someone called him back Funny how a CEO of a company gets a call back the question is my husband is being paid a lump monthly sum no tax taken off So my question is Are sick benefit taxable income when it comes time to do your income tax the amount he is being paid is 1950 a month which is 80% of his regular pay so do we now need to set up withdrawals with the tax people

This should be one of the next things I concentrate on... people reading the contract and understanding the contract... people need to understand what they agreed to...and then to some extent how the benefit claims process works.

Janis, you are calling the insurance company stupid, when you should admit that you are just at the beginning of the learning curve with respect to this topic.... Insurance companies are smart... that is why they're worth billions....lol