If you can’t work because of an illness or injury, you may qualify for long term disability (LTD) benefits in Ontario. These benefits provide monthly payments that replace part of your income while you’re unable to work.

In this guide, you’ll learn:

  • “How long term disability works in Ontario”
  • “Who qualifies and how to apply”
  • “How much LTD pays”
  • “What happens after 2 years on LTD”
  • “What to do if your claim is denied or cut off”
  • “Whether you can be fired or get severance while on LTD”

Samfiru Tumarkin LLP is the most positively reviewed disability law firm in Canada, with thousands of cases won in Ontario. If your claim is denied or delayed, our lawyers can help.

What’s In This Guide

What is Long Term Disability in Ontario?

Long term disability (LTD) is a type of insurance that provides monthly income replacement if you’re unable to work for an extended period due to illness or injury. In Ontario, these benefits are often available through a workplace group insurance plan or a private policy you purchased yourself.

To receive LTD, you must meet the definition of “totally disabled” under your policy. This means your medical condition must stop you from doing your job—or, after a certain period, any job you’re reasonably suited for.

✅ Key Facts About LTD in Ontario:

  • LTD plans pay 60% to 70% of your pre-disability income
  • Benefits are paid monthly, typically until age 65
  • There is usually a waiting period (elimination period) of 90–120 days
  • You must have active coverage when your condition begins
  • LTD is different from short-term disability and government programs like CPP Disability, ODSP, or the Disability Tax Credit.

⚠️ Important: It’s not your diagnosis that qualifies you—it’s how your condition prevents you from working.

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What Qualifies for Long-term Disability in Ontario?

To qualify for long-term disability (LTD) in Ontario, your condition must prevent you from performing the duties of your job. Most insurance providers require:

  • Medical documentation showing you can’t work due to illness or injury
  • Proof that you’re receiving appropriate treatment for your condition
  • A doctor’s opinion confirming you’re unable to perform your current job duties

Common Conditions That Qualify for LTD

Even if your diagnosis isn’t listed, you may still qualify if your symptoms prevent you from working. Every claim is based on how your condition affects your ability to function.

📋 Not sure if your diagnosis qualifies? Explore our full list of medical conditions that may qualify for LTD

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What Does “Totally Disabled” Mean for Long Term Disability in Ontario?

To receive long term disability (LTD) benefits in Ontario, you must be considered “totally disabled” under the definition of your insurance policy. This definition changes over time.

✅ Stage 1: Own Occupation (First 2 Years)

For the first 24 months, you must be unable to perform the essential duties of your own job. This includes physical, cognitive, or emotional impairments that prevent you from working in the position you held before going on leave.

✅ Stage 2: Any Occupation (After 2 Years)

After two years on LTD, most policies switch to the stricter “any occupation” test. To continue receiving benefits, you must show that you can’t do any job that you’re reasonably suited for based on your education, experience, and training—even with accommodations or retraining.

Examples of What Insurers Look At:

  • Can you work in a different industry?
  • Could you be retrained for a less demanding job?
  • Are you able to work part-time or in a modified role?

⚠️ If your LTD benefits are cut off after 2 years, it’s often because the insurer believes you now meet the “any occupation” test. This is one of the most common times LTD claims are denied or terminated.

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How to Apply for Long Term Disability in Ontario

Applying for long term disability (LTD) benefits in Ontario involves gathering medical documentation, completing claim forms, and following the rules set by your insurance provider. A mistake during the application process can result in a denial—even if you qualify for benefits.

✔ Step-by-Step Guide to Applying for LTD:

  1. Confirm your coverage: Check if you have LTD coverage through a workplace plan, union agreement, or private insurance policy.
  2. Get medical support: Before leaving your job, speak to your doctor and confirm they support your claim. Medical backing is critical.
  3. Request the claim package: Your insurer or HR department will provide application forms. These usually include:
    • Claimant’s Statement (you fill out)
    • Employer’s Statement (your employer fills out)
    • Attending Physician’s Statement (your doctor completes)
  4. Fill out the forms completely: Incomplete or inconsistent answers can lead to delays or denial. Answer honestly and clearly.
  5. Include supporting documents: Attach medical records, test results, and any notes from specialists or therapists.
  6. Submit everything by the deadline: Many policies require you to apply within a specific time window after stopping work.

Helpful Tips:

  • Double check all dates and contact details before submitting
  • Keep a copy of everything you send to the insurance company
  • Ask your doctor to explain your functional limitations, not just your diagnosis

🚨 Watch out: If your application is missing a detail or your doctor’s form is vague, your claim could be denied.

✅ Need help applying? Our long term disability lawyers can guide you through every step.

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How Much Does Long Term Disability Pay in Ontario?

If you qualify for long term disability in Ontario, your insurance policy will usually pay you a percentage of your pre-disability income—typically between 60% to 70% of your regular earnings. These payments are made monthly and may be taxable depending on who pays the premiums.

Key Points About LTD Payments

  • Typical payment: 60% to 70% of your regular gross salary
  • Frequency: Paid monthly, usually on a set day
  • Maximum benefit cap: Some policies limit the total monthly amount (e.g. $5,000/month)
  • Taxation: If your employer pays the premiums, your benefits are likely taxable. If you pay, they’re usually not

🔎 Example: If you earned $5,000 per month and your policy pays covers 66.7%, your LTD benefit would be approximately $3,335 monthly, before taxes (if applicable).

Other Sources May Reduce Your LTD Benefit

Your insurer may deduct other income sources from your LTD payments, including:

  • CPP Disability benefits
  • Workers’ Compensation (WSIB)
  • Employment Insurance (EI) sickness benefits
  • Other disability payments

📌 Tip: Always check your policy booklet to find out how much you’re entitled to—and what may be deducted.

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How Long Can You Stay on Long Term Disability in Ontario?

You can typically remain on long term disability (LTD) benefits in Ontario until age 65—but this depends on the specific terms of your insurance policy and your medical condition.

General Guidelines For How Long LTD Lasts:

  • Up to 2 years: You must prove you’re unable to perform the duties of your own occupation
  • After 2 years: You must show you can’t work in any occupation you are reasonably suited for, based on your experience, education, and training.
  • Maximum duration: Many LTD policies end at age 65, when retirement benefits typically begin

Important Exceptions:

  • If your condition improves, your insurer may cut off benefits earlier
  • If you remain disabled and meet the “any occupation” definition, benefits should continue uninterrupted
  • If your condition is permanent, you may qualify for CPP Disasbility as a supplement or backup

⚠️ Insurer trying to cut off your LTD after 2 years? You may still qualify for benefits under the “any occupation” test.

Your policy booklet will explain the maximum benefit period, but it’s common for LTD coverage to stop when:

  • You return to work
  • You no longer meet the insurer’s definition of disability
  • You reach age 65
  • You pass away

✅ If you’re being cut off unfairly—especially at the 2-year mark—contact us for a free consultation. You may be owed more benefits or compensation.

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Common Reasons Long Term Disability Claims Are Denied in Ontario

Insurance companies in Ontario frequently deny long term disability (LTD) claims—even when your doctor supports your medical leave. If your application is denied, it’s often due to one of the following reasons:

Top Reasons Why Ltd Claims Are Denied:

  • Insufficient medical evidence: The insurer claims your doctor didn’t provide enough details about your condition or limitations
  • Pre-existing condition clause: The insurer believes your symptoms are tied to a medical issue you had before coverage started
  • Disagreement about “total disability”: The insurer doesn’t think your condition meets their definition of “totally disabled”
  • Surveillance or social media: The insurer misinterprets photos or video to claim you can work
  • Missed deadlines: You didn’t submit your application or appeal paperwork in time
  • Failure to follow treatment: The insurer says you aren’t participating in proper medical care or rehabilitation
  • Change in definition at 2-year mark: You no longer qualify under the “any occupation” test, according to the insurer

⚠️ Don’t panic if your claim is denied. Most denials can be challenged—and often successfully overturned with legal help.

Why Internal Appeals Usually Fail:

Insurers often suggest appealing the decision internally. However, most internal appeals are handled by the same team that issued the denial—making it unlikely to succeed.

  • You may only have 90 days to file an internal appeal
  • You may lose valuable time before launching a legal claim
  • Appeals often result in repeated denials without compensation

What To Do If Your LTD Is Denied?

  • Request a written explanation for the denial
  • Gather your complete medical records and policy documents
  • Speak to a disability lawyer before filing an appeal

💡 Tip: A legal claim—not an appeal—is often the fastest way to get your long term disability benefits reinstated or reach a fair settlement.

Can You Be Fired While on Long Term Disability in Ontario?

Your employer can’t legally fire you just because you’re on long term disability leave. Doing so may be a violation of your rights under the Ontario Human Rights Code.

Your Employer Has a Duty to Accommodate

Employers in Ontario are required to accommodate employees with disabilities up to the point of undue hardship. That includes giving you time to recover while on long term disability leave and exploring modified duties if you’re able to return to work later.

When Can You Legally Be Terminated on LTD?

There are limited situations where termination while on LTD may be legal:

  • Frustration of contract: If medical evidence shows you are permanently unable to return to work, your employer may claim the employment contract is “frustrated”
  • Closure or restructuring: If your employer is eliminating your position for legitimate business reasons unrelated to your medical condition

⚠️ Important: Even if your contract is frustrated, your employer must still pay minimum severance under Ontario’s Employment Standards Act.

Know Your Rights If You’re Fired on LTD

💡 If you were let go while on LTD, contact our disability and employment lawyers immediately. Strict deadlines apply for both human rights and severance claims.

Read our guide: Severance and Long-Term Disability in Ontario.

Do You Still Receive Long Term Disability After Being Terminated in Ontario?

Yes — in most cases, you can continue receiving long term disability (LTD) benefits even if your employer terminates your employment.

Here’s How It Works:

  • If you were already approved for LTD before your termination, your benefits usually continue uninterrupted
  • Most LTD policies are provided through a group insurance plan, and coverage remains in place if you were actively enrolled when you became disabled
  • Your employer typically has no control over whether the insurer stops your payments

What If You’re Fired Before Your LTD Claim is Approved?

If you’ve applied for LTD but haven’t been approved yet, the insurer may still process your application. The key factor is whether you had coverage on the date your disability began.

⚠️ Important: Termination doesn’t “cancel” your LTD eligibility if your claim is based on a disability that began before your last day of work.

Can Your LTD Be Cut Off After Termination?

  • Yes — but only if the insurer decides you no longer meet the definition of disability
  • Your employer can’t unilaterally cancel your LTD payments
  • Even if you’re terminated for cause, you may still qualify for LTD benefits, depending on your policy wording

What To Do If Your LTD Stops After You’re Fired

If your LTD benefits are discontinued after you’re let go, contact our Ontario disability lawyers immediately. You may have a claim for wrongful denial of benefits—and potentially severance or human rights compensation as well.

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What Happens After 2 Years on Long Term Disability in Ontario

The two-year mark is one of the most critical turning points in a long term disability (LTD) claim in Ontario.

At this stage, the definition of “totally disabled” often changes in your policy. During the first 24 months, most policies define disability based on whether you can do the essential duties of your own job. After two years, insurers apply a tougher standard — they assess whether you can perform any occupation.

Here’s What Typically Happens:

  • Your insurer may reassess your claim using the “any occupation” test
  • If they believe you can work in another role (even one that pays less), they may cut off your benefits
  • You may be asked to attend medical exams, interviews, or training programs
  • Surveillance (online or physical) may increase during this time

⚠️ Important: You do not need to be bedridden or unable to work at all. If your medical condition prevents you from doing a job that is suitable based on your experience, training, or education — even part-time or modified work — you may still qualify for LTD past the two-year mark.

Many people are wrongfully denied or cut off at this point. Insurance companies often use vague reasoning or ignore medical realities to justify cutting off benefits. If your benefits are denied after two years, speak to a long term disability lawyer immediately.

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How to Appeal a Denied Long Term Disability Claim in Ontario

If your long term disability (LTD) claim is denied in Ontario, you typically have two options:

  1. File an internal appeal with the insurer
  2. Take legal action through a lawsuit

Here’s what you need to know:

Option 1: Appeal the Denial Internally

  • You may be allowed to submit up to three internal appeals
  • Each appeal must be filed within 90 days of your denial letter.
  • You must provide new medical evidence to have a chance at success.

⚠️ Be cautious: Internal appeals are often reviewed by the same insurance company that denied your claim. Without strong new evidence, the chance of success is low.

Option 2: File a Legal Claim

  • You can sue the insurance company for wrongful denial of benefits
  • This option involves an experienced LTD lawyer and gives you more leverage
  • Nearly all LTD lawsuits are resolved through settlement — without going to court

✅ Our advice: You are not required to appeal before starting a legal claim. In many cases, it’s better to skip the insurer’s internal process and speak with a disability lawyer at Samfiru Tumarkin LLP right away.

Don’t wait too long. In Ontario, you have two years from the date of your denial to take legal action.

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Can You Be Denied Long Term Disability for a Pre-Existing Condition in Ontario?

Yes — many long term disability (LTD) policies in Ontario include a pre-existing condition clause, which allows the insurance company to deny your claim if your disability is linked to a medical issue you had before your coverage began.

How Pre-Existing Condition Clauses Work

These clauses usually apply during the first 12 months of LTD coverage. If:

  • You were treated for a condition before your insurance started, and
  • You become disabled due to that same condition shortly after coverage begins, then the insurer may deny your claim.

What Counts as a Pre-Existing Condition?

Common examples include:

The insurer will often review:

  • Your medical history
  • Pharmacy records
  • Doctors’ notes in the months before your policy began

⚠️ If you visited a doctor, took medication, or received treatment for a condition before coverage started — even if you felt fine later — the insurer may call it “pre-existing.”

Can You Still Get Benefits?

Yes — especially if:

  • Your new disability is unrelated to your past condition
  • Enough time has passed since the policy began
  • The insurer is wrongly applying the clause

If your claim is denied due to a pre-existing condition, speak with an LTD lawyer at Samfiru Tumarkin LLP right away. Many claims are still valid — and denials can be successfully challenged.

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Can You Travel While on Long Term Disability in Ontario?

Yes, you can travel while receiving long term disability (LTD) benefits in Ontario — but only if the travel does not interfere with your recovery, treatment, or policy terms.

Many LTD policies do not outright ban travel, but they often include conditions such as:

  • Medical treatment must continue
  • Travel must not contradict your reported limitations
  • You may need insurer approval for extended or international trips

Why Travel Could Affect Your LTD Claim

Insurance companies may view travel as a sign you’re not “totally disabled.” They may use it to:

  • Justify denying your benefits
  • Argue you’re capable of work
  • Question your credibility — especially if you’re seen doing activities that go beyond your claimed restrictions

🎯 Example: If you’re on LTD for anxiety and depression and post vacation photos on social media showing high-energy activities, your insurer may question the legitimacy of your claim.

Before You Travel on LTD

  • Check your policy: Some require written approval.
  • Speak with your doctor: You may need a note saying travel won’t harm your recovery.
  • Limit social media: Posts can be misinterpreted and used against you.
  • Get legal advice if you’re unsure what your policy allows.

Even innocent vacations have led to claims being cut off. If your benefits are denied due to travel, a long term disability lawyer can help you challenge the decision.

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Real Legal Victories for Long Term Disability Clients in Ontario

Our disability lawyers at Samfiru Tumarkin LLP have helped thousands of people across Ontario challenge unfair LTD denials — and win.

🟢 Real Result
Sandra Bullock’s long-term disability benefits were suddenly cut off. We launched legal action — and won. The insurer reinstated her benefits, and her case was covered by national media.

➡️ Read how we helped Sandra Bullock

🟢 Real Result
When teacher Julie Austin was denied LTD benefits after being secretly surveilled by her insurer, our team proved the footage actually supported her disability.

➡️ Read about her legal victory

Denied doesn’t mean defeated. If your long term disability claim has been cut off or denied in Ontario, speak with our team today for a free consultation. We know how to hold insurers accountable.

FAQs About Long Term Disability in Ontario

👉 Is Long Term Disability Taxable in Ontario?
It depends on who pays the premiums for your LTD insurance:
  • If you pay the premium (see as “LTD deduction” on your pay stub), your benefits are usually not taxed
  • If your employer pays, your benefits are typically taxable income
Check your pay stub or group benefits package to confirm who pays for your LTD coverage.
👉 Do You Need to Be Employed to Get Long Term Disability in Ontario?
Yes. You must have active LTD coverage through a group or private insurance plan when you become disabled. You can’t apply for LTD benefits after leaving a job or losing coverage.
👉 Can You Work While On Long Term Disability in Ontario?
It depends on your policy. Some policies allow limited or part-time work during recovery, but others may cut off your benefits. Always speak with your insurer — and a lawyer — before returning to work.
👉 Is Anxiety or Depression Covered by Long Term Disability in Ontario?
Yes. Mental health conditions like depression, anxiety, PTSD, and burnout can qualify — as long as they prevent you from performing your job and your doctor supports the claim.
👉 Can I Switch to CPP Disability if My LTD is Ending?
Yes. If your LTD benefits are ending or you’ve reached the 2-year mark, you may qualify for Canada Pension Plan Disability (CPP-D). This federal program offers additional financial support for those who can’t return to work. However, check with a disability lawyer at our firm first, as you may have been cut off your LTD prematurely and are owed compensation.
💼 Which Insurance Companies Deny LTD in Ontario?
Every major insurer in Ontario denies long-term disability claims — even when a doctor supports your case. At Samfiru Tumarkin LLP, we’ve helped thousands of clients challenge denials by:

❗ Not on the list? We handle LTD denials from dozens of other insurers across Ontario. View our full list of insurers.

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How an Ontario Long Term Disability Lawyer Can Help

If your long term disability benefits have been denied, delayed, or cut off, an experienced Ontario LTD lawyer can protect your rights and help you recove the compensation you’re owed.

What We Do for LTD Clients in Ontario

At Samfiru Tumarkin LLP, our disability lawyers can:

  • Review your denial letter and insurance policy
  • Challenge wrongful denials and file a lawsuit if necessary
  • Negotiate a fair settlement with your insurer
  • Communicate with the insurance company on your behalf
  • Advise you on returning to work, termination, or accommodation

We also help clients avoid common mistakes, like wasting time on internal appeals or signing documents that limit their claim.

💲 No Upfront Fees

All LTD claims are handled on a contingency fee basis — meaning you don’t pay unless we recover compensation for you. We also offer free consultations to help you understand your options.

🛡️ Tip: The earlier you involve a lawyer, the more protected you are — especially if you’re approaching the 2-year mark or facing pressure to return to work.

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Free Consultation: Speak to a Disability Lawyer

If your long term disability claim has been denied, delayed, or cut off — don’t give up. That’s exactly what the insurance company is counting on.

Book your FREE consultation with a long-term disability lawyer in Toronto at Samfiru Tumarkin LLP. We’ve helped over 50,000 Canadians get the compensation they deserve. We’ll deal with the insurer so you can focus on your health.

✅ Insider Advantage: Sivan Tumarkin, co-founding partner of Samfiru Tumarkin LLP, previously worked for insurance companies. Today, he uses that knowledge to advocate for disabled individuals across Ontario. He knows insurers’ strategies, and how to level the playing field in your favour.

Connect with Canada’s top disability law firm today. Call us at 1-855-821-5900, email help@disabilityrights.ca, or request a callback through our Free Consultation Form.

Why Canadians Trust Samfiru Tumarkin LLP

  • 👥 Over 50,000 clients helped nationwide
  • 💰 Millions recovered in compensation
  • ⚖️ No win, no fee — you don’t pay unless we succeed
  • ⭐ 2,311 5-star Google reviews across Ontario (4.8 average)
  • 🏆 Named one of Canada’s Best Law Firms by The Globe and Mail

⛔ ODSP or WSIB Denial? Unfortunately, Samfiru Tumarkin LLP does not assist with ODSP or WSIB claim denials. For support, please contact Legal Aid Ontario.

We also help with life insurance, critical illness, and mortgage insurance claims.

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