What Happens After 2 Years On Canada Life Long Term Disability

If you’re receiving long-term disability benefits through Canada Life, you may have heard about the “2-year change.”

Many people are approved for benefits initially — only to face a reassessment at the 24-month mark.

Understanding what happens after two years can help you avoid unexpected termination of your disability payments.

Why Does Canada Life Reassess LTD Claims After 2 Years?

Most Canada Life long-term disability policies contain two definitions of disability.

1️⃣ “Own Occupation” (First 24 Months)

During the first two years, you qualify if you are

• Unable to perform the essential duties of your own job.

You don’t need to prove you can’t work at all — just that you can’t do your specific role.

2️⃣ “Any Occupation” (After 24 Months)

After 24 months, the definition changes.

You must now prove you are:

Unable to perform any occupation that is reasonably suited to your:

• Education
• Training
• Experience

This is where many claims are cut off.

What Changes at the 2-Year Mark?

At or near the 24-month mark, Canada Life may:

• Request updated medical records
• Require specialist reports
• Conduct a paper review of your file
• Order an independent medical examination (IME)
• Assess transferable skills
• Conduct surveillance
• Refer your file to a vocational consultant

Why Are Benefits Often Terminated After 2 Years?

Benefits may be stopped if Canada Life concludes:

• Your condition has improved
• You can perform sedentary work
• Your medical evidence doesn’t support total disability
• There are “alternative occupations” you could do

In many cases, claimants are told they can work in:

• Administrative roles
• Customer service jobs
• Remote or desk-based positions

Even if those roles are not realistic.

What Counts as “Any Occupation”?

“Any occupation” does not mean any job whatsoever.

It typically means a job that:

• Fits your background
• Pays a portion of your previous income
• Exists in the labour market

However, insurers often take an aggressive interpretation of this definition.

Important

If your limitations are not clearly documented, Canada Life may argue you can perform modified or sedentary work.

Does Canada Life Conduct Surveillance Before the 2-Year Review?

Sometimes — and often without warning.

Surveillance may occur:

• Before the 24-month review
• After submitting medical updates
• When there are perceived inconsistencies

Surveillance footage may be used to argue that your functional capacity is greater than reported.

What Should You Do Before the 2-Year Change?

If you are approaching the 24-month mark:

• ✔ Keep your medical records updated
• ✔ Get detailed functional limitations documented
• ✔ Involve specialists where needed
• ✔ Avoid gaps in treatment
• ✔ Be clear about how your condition affects daily life

What If Canada Life Stops Your Benefits After 2 Years?

If your benefits are terminated, you typically have two options:

1. Internal appeal
2. Legal action

Appeals involve submitting additional medical evidence — but they are handled by the insurer.

Can Mental Health Claims Be Cut Off After 2 Years?

Yes — and it happens often.

Canada Life frequently reassesses mental health claims at the 24-month mark under the “any occupation” test.

This includes:

• Depression
• Anxiety
• PTSD
• Burnout
• Chronic stress

How a Disability Lawyer Can Help

If you’re approaching or past the 2-year mark:

• Your policy wording matters
• Your medical evidence matters
• Your vocational profile matters

A short legal review with a long term disability lawyer can determine if Canada Life:

• Applied the correct test
• Misinterpreted “any occupation”
• Ignored medical evidence

FAQ

What happens at 24 months of Canada Life LTD?

The definition of disability changes from “own occupation” to “any occupation,” triggering a reassessment.

Does Canada Life automatically cut off benefits after 2 years?

No — but many claims are reassessed and terminated at this stage.

Can Canada Life say I can work a desk job?

Yes. Insurers often argue claimants can do sedentary work, even when limitations exist.

What if I disagree with their decision?

You may appeal or take legal action, depending on your situation.

Speak With a Disability Lawyer

If Canada Life has reassessed or terminated your long-term disability benefits after 2 years, you do not have to navigate the process alone.

A free consultation with a disability lawyer at Samfiru Tumarkin LLP can help you understand your options and protect your right to ongoing benefits.