Living with a disability is challenging. From not being able to work to dealing with the stress of expensive medical necessities, people with disabilities face many barriers preventing them from becoming financially stable. Luckily, there are loan options and government support programs like the CPPD that can help. 

What are the Canada Pension Plan disability benefits? 

Canadian Pension Plan disability benefits (CPP disability or CPPD) function as a partial income replacement for CPP contributors who are unable to work on a regular basis because of a severe and prolonged disability. 

There are two types of CPP disability benefits:

  • Disability pension: A taxable monthly payment for people who have contributed to CPP and cannot work regularly due to a disability. 
  • Post-retirement disability benefit: A monthly benefit for people who are disabled and collecting the CPP retirement pension, but didn’t apply for a disability pension within 15 months of their first retirement pension payment. 

Do I qualify for CPP disability benefits?

You’re eligible for CPP disability benefits if you:

  • are under the age of 65
  • have made CPP contributions in four of the past six years, or three of the previous six years if you’ve contributed for at least 25 years
  • have a severe and prolonged disability that prevents you from working any job on a regular basis

The Quebec Pension Plan Disability (QPPD) is the Quebec equivalent of the CPPD. The QPPD follows the same eligibility requirements as the CPPD and applies to you if:

  • Quebec is the only province you’ve worked in
  • you currently live in Quebec and have worked both in Quebec and in another province or territory
  • you live abroad and Quebec was your last province of residence

Is There a difference in CPP disability benefits after Age 65?

The disability pension automatically converts to a retirement pension when you turn 65. The monthly amount of the retirement pension will be less than your disability one. The post-retirement disability benefit stops when you reach 65, but you can apply for the Old Age Security program when that happens.

How do I apply for CPP disability benefits?

You have to apply for CPPD disability benefits in writing. Fill out the application form (ISP1151) and ask your doctor or nurse to complete the medical report (ISP2519) as soon as you develop a disability or terminal medical condition that prevents you from working. Mail both forms with certified copies of any required documents to your nearest Service Canada office.

It takes about 170 days for the government to assess your application and make a decision. A staff member will contact you if they have questions or require additional information. A medical adjudicator may also ask you to see another doctor for a second medical evaluation.

How much can you receive from CPP disability benefits in 2019?

The average monthly payment from the disability pension in 2019 is $987.65 with a maximum of $1,362.30. Your payment is calculated by adding the basic monthly amount with an amount based on your CPP contributions. The 2019 post-retirement disability benefit is $496.36 per month. Your dependent children may also qualify for a children’s benefit if you receive CPPD benefits.

Can I collect ODSP (Ontario Disability Support Program) and CPPD?

You may be eligible for CPP disability benefits if you collect ODSP. However, ODSP may reduce and even revoke their payments if you receive support from CPPD. Contact your provincial social assistance program for more details.

Can I get a loan while on CPPD?

From car repairs to medical emergencies, unexpected expenses can hit you when you least expect it. In many cases, the monthly rate from CPP disability benefits is not enough to cover the high costs of unforeseen mishaps. If you don’t have an emergency fund to draw from, you may be left in a tight spot and in need of some quick cash. 

Just like ODSP, it is possible to get a loan while on CPPD however, keep in mind that not all loans are created equal.

The dangers of payday loans

A payday loan, also known as a cash advance loan, is a form of short-term borrowing where lenders give high-interest credit to borrowers based on their income and payroll timeline. Many low-income individuals or households are attracted to payday loan providers because they advertise their services as an easy way to get money fast with applications and approvals taking just a few minutes to complete. It may seem like a good solution if you have poor credit or no savings, but the reality is a payday loan can do more harm than good.

With short repayment periods (usually two weeks), high fees, and astronomical annual percentage rates (APR) of up to 599%, these loans are often described as predatory because of how much they cost the borrower. What’s worse is that many people who get a payday loan are often trapped in an endless cycle of debt repayment as they need to take out another loan to pay for the one before.

Personal loans: a better solution

A personal installment loan beats a payday loan any day. This kind of loan offers a longer repayment period with much lower interest rates. It also includes a fixed repayment plan to help you get back on track financially. A personal loan can even improve your credit score if you make your payments on time.

Fresh Start Finance is here to help

Thanks to Fresh Start Finance, you never have to resort to risky payday loans. Fresh Start Finance provides flexible personal loans of up to $15,000 to anyone, including CPPD recipients. The loans can be used any way you like and can cover things like medical needs, household bills, and emergency repairs.

Getting a personal loan with Fresh Start Finance is quick, easy, and stress-free:

  • All credit scores welcome: Whether you’re new to credit or have filed for bankruptcy, Fresh Start Finance approves loans for every credit rating.
  • Loans of up to $15,000: Choose how much money you’d like to borrow and get approved for an amount between $600 to $15,000.
  • Simple application process: Apply online in minutes. You can also speak to a live representative by phone or text message. 
  • Fast approvals: Funds are deposited into your bank account usually within 24 hours of applying.
  • Full transparency: No application fees, maintenance charges, and hidden costs ever.
  • No appointment required: Online applications mean you’ll never have to wait in line at a bank or payday loan shop.
  • Canadian: Fresh Start Finance is based in Vancouver and serves people across the country.

Ready to get approved for a personal loan? Apply online or call 1-888-556-6441 to get started.