Long-term disability (LTD) in Ontario replaces part of your income when an illness or injury prevents you from working. Most plans pay about 60% to 70% of your covered earnings. Payments can continue for years, including to age 65 under some policies, as long as you meet the plan’s requirements.
Coverage comes through a workplace benefits plan, an association or a policy you bought yourself. Your policy sets the rules for qualifying, payment amounts and how long benefits last.
Ontario LTD at a Glance
- Who qualifies: People with coverage whose medical limitations meet their policy’s disability test.
- What it pays: Often 60% to 70% of covered earnings, subject to limits and deductions.
- When it starts: After the policy’s waiting period, often 90 to 120 days.
- How long it lasts: Up to the policy’s maximum benefit period while you continue to qualify.
- After two years: Many plans change the disability test. Benefits do not automatically expire.
Reviewed by: Sivan Tumarkin, Disability Lawyer and National Co-Managing Partner
Who Qualifies for Long-Term Disability in Ontario?
You need LTD coverage and medical evidence showing that you meet your policy’s disability test. Many plans initially assess whether you can perform the essential duties of your own occupation. Your claim must also meet the waiting period, deadlines and other coverage rules.
Physical and mental health conditions can qualify, including:
- Depression, anxiety and PTSD
- Chronic pain, fibromyalgia and chronic fatigue
- Cancer, heart disease and multiple sclerosis
- Brain injuries, back injuries and neurological conditions
- Long COVID and other conditions with lasting symptoms
The diagnosis is only part of the picture. Your medical evidence should explain how symptoms affect concentration, attendance, movement, stamina or other demands of your occupation. Read more about medical conditions that can qualify for disability benefits.
“Totally disabled” does not mean you can’t do anything. For example, a person with depression might manage a short appointment but be unable to concentrate consistently, meet deadlines or sustain a full workday. The medical evidence needs to explain those limitations.
What About a Pre-Existing Condition?
A health condition that existed before your coverage began does not automatically disqualify you. The insurer must apply the exclusion in your policy, including its dates and exceptions. Learn how pre-existing condition clauses affect LTD claims.
How Much Does Long-Term Disability Pay in Ontario?
Most LTD plans replace about 60% to 70% of your covered earnings. Ontario does not set one payment amount for private LTD insurance.
Example: If your covered earnings are $5,000 a month and your plan pays 60%, the starting benefit is $3,000 a month, before deductions or taxes.
Check your policy’s monthly maximum, which earnings it covers, and deductions for other income. Bonuses, overtime and commissions are not included in every plan.
Are LTD Benefits Taxable?
For workplace group plans, benefits are tax-free when employees pay the entire cost. Employer-funded benefits are taxable, although qualifying employee contributions can reduce the taxable amount. Individual policies can work differently. Check your plan and the CRA’s guidance on disability payments.
When Do LTD Payments Start?
Payments begin after your policy’s waiting period, often 90 to 120 days. You might receive sick pay, short-term disability benefits in Ontario or EI sickness benefits during that time. Start preparing your LTD application before that income support ends.
How Long Can You Be on Long-Term Disability in Ontario?
Some LTD policies pay for a set period, such as two or five years. Others can continue to age 65. Payments depend on your policy’s maximum benefit period and whether you continue to meet its requirements.
Approval does not guarantee payments for the full period. The insurer can review your medical information and ability to work throughout the claim.
Does LTD End After Two Years?
No—not automatically. Many policies change the definition of disability after about two years of LTD payments:
- Own occupation: The initial test focuses on whether you can perform the essential duties of your occupation.
- Any occupation: The later test considers other work suited to your education, training and experience, subject to the policy’s wording.
“Any occupation” does not mean any job at all. Your medical restrictions and the policy’s earnings requirements matter. The insurer must assess whether you meet that test.
A two-year review is different from a policy that has a two-year maximum payment period. Read more about the change of definition after two years on LTD.
How Do You Apply for Long-Term Disability in Ontario?
You apply through the insurer or benefits plan that provides your coverage. There is no single Ontario government application for private LTD insurance.
- Get your policy and claim forms from your employer, benefits administrator or insurer.
- Explain why you can’t work. Describe your symptoms and the duties you cannot perform.
- Have your treating professional provide medical evidence explaining your restrictions and treatment.
- Confirm your employer submits its information if your plan requires it.
- Submit before the policy deadline and keep copies and proof of submission.
Short-term disability approval does not guarantee LTD approval. Our Ontario LTD application guide explains the forms, timing and evidence in more detail.
Is LTD the Same as CPP Disability or ODSP?
No. These are separate benefits with different rules:
- LTD: Insurance payments governed by your policy.
- CPP Disability: A federal benefit with contribution requirements and its own disability test.
- ODSP: Ontario income support with financial and disability requirements.
Your LTD insurer may require a CPP Disability application and deduct approved CPP payments. For example, a $3,000 LTD benefit could become $1,800 from the insurer plus $1,200 from CPP Disability, if the policy requires that offset.
What if Your LTD Benefits Are Denied or Stopped?
A denial is the insurer’s decision. It does not mean the insurer got it right. Disputes can involve medical evidence, policy exclusions or claims that you can return to work.
Get the reasons in writing. Keep your policy, medical information and correspondence, and speak with a disability lawyer promptly.
Before starting an internal appeal, find out whether it is the right approach. An appeal asks the same insurer to reconsider. A legal claim is a separate process. Read about denied LTD benefits in Ontario and appeals and legal claims.
How Long Do You Have to Sue?
Ontario’s Limitations Act sets a basic two-year period from discovery of a claim. The insurer’s decision, communications and your circumstances affect when that clock starts.
Don’t assume an appeal pauses your legal deadline. Your policy also has deadlines for submitting claims and medical evidence. Get a free LTD consultation before waiting for another insurer decision.
Can You Be Fired While on LTD in Ontario?
An employer can’t fire you for a discriminatory reason and must accommodate your disability to the point of undue hardship. Receiving LTD does not guarantee that your employment will continue indefinitely.
Losing your job does not automatically end an existing LTD claim. Get advice about your employment and insurance rights before signing a release. Learn more about termination while on long-term disability.
What About Ontario’s Long-Term Illness Leave?
Long-term illness leave in Ontario provides qualifying employees with up to 27 weeks of unpaid, job-protected leave in a 52-week period. It requires ESA coverage, at least 13 consecutive weeks of employment and the required medical certificate.
Job-protected leave and LTD payments have separate rules. Disability-accommodation duties can also continue after the statutory leave ends.
What if the Insurer Wants You Back at Work?
Discuss the proposed duties and hours with your treating professional. If your medical team says you can’t return safely, get advice before agreeing to a plan. Our guide explains returning to work after LTD.
We Help Ontarians Challenge LTD Denials
Our Ontario long-term disability lawyers challenge denied, delayed and stopped benefits. We review the policy and medical evidence, deal with the insurer and pursue the benefits or compensation you’re owed.
Sivan Tumarkin leads our disability law practice. Before co-founding the firm, he represented insurance companies. He now uses that experience to challenge denied and stopped claims.
Ontario Clients We Have Helped
- Sandra Bullock: James K. Fireman challenged Sun Life’s decision to stop the Georgetown mother’s LTD payments. Her benefits were reinstated. Read Sandra’s story.
- Julie Austin: Our firm represented the Barrie teacher after a serious brain injury. She secured $113,000 in compensation in her OTIP benefits dispute. Read Julie’s story.
Your LTD consultation is free. We work on contingency, with no upfront legal fees and no legal fee unless we recover compensation. We explain the fee agreement, taxes and case expenses before you hire us.
We help people throughout Ontario, including Toronto, Ottawa, Mississauga, Brampton, Hamilton, London, Windsor, Kitchener, Waterloo, Barrie and Kingston. Consultations are available by phone or video.
Long-Term Disability Ontario: Common Questions
Can You Get LTD for Anxiety or Depression?
Yes. Mental health conditions can qualify when you have coverage and meet the policy’s disability test. Your medical evidence should explain how your symptoms prevent you from performing the required work.
Can You Work Part-Time While Receiving LTD?
Some policies allow part-time or rehabilitation work. Earnings can reduce payments, and work activity can affect your claim. Check the policy and get advice before starting.
What if You Don’t Have LTD Coverage?
You need insurance coverage to claim private LTD benefits. Depending on your circumstances, EI sickness benefits, CPP Disability or ODSP may provide support. Each program has its own application and requirements.
Do You Have to Appeal Before Contacting a Lawyer?
No. You can speak with a lawyer as soon as your claim is denied, delayed or challenged. Get advice about the policy and deadlines before deciding how to respond.
Will Your LTD Case Go to Trial?
Many LTD disputes resolve through negotiation. Settlement discussions can continue even after a lawsuit begins. Our team explains the process and advises you about any proposed resolution.
Denied Doesn’t Mean Defeated.
If your insurer has denied or stopped your LTD benefits, tell us what happened. We’ll explain your options and how we can help. You don’t need every document ready before contacting us.