Can You Apply for Long-Term Disability After Losing Your Job in Canada?

Many Canadians develop serious medical issues shortly after being fired, laid off, or resigning. One of the most common questions we receive is:

👉 Can you still apply for long-term disability (LTD) after your employment has ended?

The short answer:

Yes — in many cases, you can still qualify for LTD after losing your job.
But eligibility depends on when your disability begins, how your benefits are structured, and the exact wording of your LTD policy.

This guide explains how Long term disability coverage works before and after termination, what rules insurers rely on, and how to protect your rights.

When Can You Apply for LTD After Termination?

You may still qualify for LTD after you lose your job if:

1. Your disability began while you were still employed.

This is the most important rule.

If symptoms started — or your condition became disabling — before your termination date, you may be eligible even if you apply later.

2. Your LTD coverage continued during your notice period.

Employers must often maintain benefits during:

• statutory notice
• working notice
• termination pay in lieu of notice (depends on policy wording)

If coverage continued, and your disability arose during this period, you may be protected.

3. Your policy does not strictly require you to be “actively working.”

Some policies include an active work requirement, which insurers rely on to deny claims.
However, this rule is not as absolute as insurers suggest — especially when disability began before the last day of active work.

When You Can’t Apply for LTD After Termination

You generally won’t qualify if:

• Your disability began after all coverage ended
• You are not actively working and the policy strictly requires it
• Your employer fails to extend benefits during the notice period and can legally do so
• You voluntarily opt out of LTD coverage

Even in these situations, it’s worth getting legal advice — many declined claims are reversed after a policy review.

What Happens if You Become Disabled Shortly After Being Fired?

This is a very common scenario. Stress, anxiety, depression, and physical conditions often worsen immediately after job loss.

Here’s what matters:

1. Did your symptoms begin before the termination?

If yes, you may still have coverage.

2. Did your symptoms become disabling during the notice period?

You may have LTD entitlement because, legally, you’re still “employed” during that period.

3. Did the employer maintain benefits as required by law?

If not, the employer may be liable for lost LTD coverage.

This is where employment law intersects with disability law — and where our team adds significant value.

What If You Didn’t Realize You Were Disabled Until After Termination?

Many people don’t immediately recognize their condition as a “disability.”

Insurance policies, however, look at:

• the onset of symptoms, not the diagnosis date
• the date your condition first affected your ability to work
• medical evidence showing impairment before termination

A claim filed after job loss can still succeed if your doctor confirms the disability began earlier.

What If Your Employer Terminated You Because of Your Health?

If your dismissal without cause is connected to your medical condition, this may be:

• a wrongful dismissal,
• a human rights violation, and
• a trigger for severance (as much as 24 months’ pay), LTD coverage disputes, and damages.

Insurers often deny LTD claims in these cases, arguing that coverage ended.
Employers often deny responsibility for benefits continuation.

At Samfiru Tumarkin LLP, our lawyers regularly resolve these disputes by coordinating the employment-law and LTD-law aspects.

Examples of When You Can Apply for LTD After Losing Your Job

✔ Example 1: Disability started before termination

You developed anxiety months before being fired. You apply for LTD after dismissal.
You may qualify.

✔ Example 2: Disability arises during the notice period

Employer pays 8 weeks’ termination pay. Your depression worsens during that period.
You may be covered.

✔ Example 3: Employer fails to continue benefits

Employer was required to maintain LTD benefits but didn’t.
They may be liable for the value of LTD benefits lost.

Examples of When You Can’t Apply

✘ Disability began after all coverage ended

Coverage ended, symptoms began later → typically no LTD entitlement.

✘ Policy requires active work and you were not employed

Strict policies may block eligibility unless symptoms pre-date termination.

✘ You opted out of LTD

You can’t retroactively apply.

FAQs About Applying for LTD After Termination

Can I apply for LTD if I resign?

Yes — if your disability began before resignation or during any notice or benefit continuation.

Does quitting make it harder?

Potentially, but eligibility depends on timing and symptom history.

Can I get severance AND LTD if I’m disabled?

Yes — but structuring the severance correctly is crucial to avoid LTD offsets.

What if my LTD claim is denied because I was terminated?

Many denials based on termination are legally incorrect and reversed once challenged.

What To Do If You Need LTD After Losing Your Job

Take these steps immediately:

1. Request a copy of your LTD policy
2. Document when your symptoms started
3. Get a medical opinion confirming the timeline
4. Do NOT assume you’re ineligible
5. Speak to a lawyer who understands both LTD and employment law

These cases turn on small details — and insurers frequently misinterpret their own policy wording.

Speak to a Lawyer About LTD After Job Loss

If you:

• were fired shortly before becoming disabled
• developed symptoms before or during termination
• applied for LTD after losing your job
• had your LTD claim denied due to “coverage ending” or a change of definition at two years
• believe your employer failed to extend benefits

The employment lawyers and LTD lawyers at Samfiru Tumarkin LLP can help you determine whether LTD coverage still applies and whether additional compensation is owed.

Our firm has helped over 50,000 Canadians secure the compensation they’re owed, and has earned more than 3,000 five-star reviews across the country.