Long-term disability (LTD) in Ontario is insurance that replaces part of your income when an illness, injury or medical condition prevents you from working. Most plans pay about 60 to 70 per cent of your covered earnings, although your policy determines the amount, when payments begin and how long they can continue.
You may have coverage through your employer, a professional association or a private insurance policy. LTD is different from government programs such as CPP Disability and ODSP.
This guide explains who qualifies, how payments work, what changes after two years and what to do if your benefits are denied or stopped.
Long-Term Disability in Ontario at a Glance
- Who qualifies: People with LTD coverage whose medical limitations meet their policy’s definition of disability.
- How much it pays: Often 60 to 70 per cent of covered earnings, subject to policy limits and deductions.
- When it starts: After the waiting period in your policy, often 90 to 120 days.
- How long it lasts: While you remain eligible, up to your policy’s maximum benefit period. Some plans can continue to age 65.
- What changes after two years: Many policies begin assessing your ability to do another suitable occupation.
- If benefits are denied: Get the decision in writing and legal advice promptly. A denial is not the final word.
Denied Doesn’t Mean Defeated.
If your LTD benefits were denied, delayed or cut off, contact Samfiru Tumarkin LLP for a free consultation. Our Ontario disability lawyers can review what happened and explain your options for recovering benefits or compensation.
Choose Your Next Step: Apply for LTD | Benefits Denied or Stopped | Speak With an Ontario LTD Lawyer
Who Qualifies for Long-Term Disability in Ontario?
You need LTD coverage, a medical condition that prevents you from performing the work required under your policy, and medical evidence supporting your limitations. Your policy also sets out waiting periods, exclusions and claim deadlines.
There is no single Ontario list of conditions that automatically qualifies someone for LTD. What matters is how your condition affects your ability to work safely, reliably and consistently.
Physical and mental health conditions can qualify, including:
- Depression, anxiety, PTSD and other mental health conditions
- Chronic pain, fibromyalgia and chronic fatigue syndrome
- Cancer, heart disease and neurological conditions
- Multiple sclerosis and autoimmune conditions
- Back injuries, brain injuries and post-concussion symptoms
- Long COVID and other conditions that cause lasting limitations
A diagnosis alone may not be enough. Your medical information should explain your symptoms, treatment and the duties you cannot perform. Read more about medical conditions that can qualify for disability benefits.
Does “Totally Disabled” Mean You Cannot Do Anything?
No. Depending on your policy, you may qualify even if you can attend appointments, drive short distances or do some household tasks. Being able to do an activity briefly does not necessarily mean you can sustain a regular workday.
How Much Does Long-Term Disability Pay in Ontario?
Most LTD plans replace approximately 60 to 70 per cent of your normal income. There is no single LTD payment amount set by the Ontario government. Your insurance policy determines your benefit.
For example, if your covered monthly earnings are $5,000 and your plan pays 60 per cent, the starting benefit would be $3,000 per month, before applicable deductions or taxes.
Check your policy for:
- The percentage paid and which earnings are included
- A maximum monthly payment
- Deductions for other income, including CPP Disability
- Rules about part-time earnings and rehabilitation work
Are LTD Payments Taxable?
Benefits are tax-free if you paid the entire disability insurance premium yourself. Benefits are taxable if your employer paid all or part of the premium. Check your plan and get tax advice about your circumstances.
The Financial Consumer Agency of Canada’s disability insurance guide explains payment percentages, deductions and tax treatment.
When Do Long-Term Disability Payments Start?
LTD payments begin after the waiting period, also called the elimination period, in your policy. Many plans use 90 to 120 days, but the period can be shorter or longer.
You may receive sick pay, short-term disability benefits or EI sickness benefits while you wait, if eligible.
Approval for short-term disability does not automatically guarantee LTD approval. Start preparing your LTD application before your current income support ends.
How Long Can You Receive Long-Term Disability in Ontario?
LTD can last for years if you continue to meet your policy’s requirements. Some plans provide benefits until age 65; others have a shorter maximum benefit period.
Your benefits can end if you no longer meet the disability definition, reach the policy’s maximum benefit period or become subject to another applicable policy limit. Approval does not mean payments are guaranteed indefinitely.
The insurer may request updated medical information during your claim. Keep copies of your records and ask for an explanation if it proposes to stop your payments.
What Happens After Two Years on Long-Term Disability?
Many LTD policies change their definition of disability after approximately 24 months. This is a change in the eligibility test, not an automatic expiry of your benefits.
- Own occupation: During the initial period, the policy usually assesses whether you can perform the essential duties of your own occupation.
- Any occupation: Later, it may assess whether you can perform another occupation reasonably suited to your education, training or experience, subject to the policy’s wording.
“Any occupation” does not necessarily mean any job at all. Your medical limitations and any earnings requirements in the policy matter.
If your insurer says you can do another job, ask which occupation it has identified and what evidence supports that decision. Learn 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 application package from your employer, benefits administrator or insurer.
- Complete your statement about your condition, symptoms and work duties.
- Have your treating professional provide medical information explaining your limitations.
- Confirm your employer submits its information if your plan requires it.
- Submit within the policy deadlines and keep a complete copy and proof of submission.
For the forms, timing and evidence you need, read our guide to applying for long-term disability in Ontario.
How Is LTD Different From CPP Disability and ODSP?
These programs have different eligibility rules and applications:
- LTD: Insurance benefits governed by your policy.
- CPP Disability: A federal benefit with contribution requirements and a separate disability test.
- ODSP: Ontario income support with financial and disability eligibility requirements.
Your LTD insurer may require you to apply for CPP Disability. If approved, your policy may allow the insurer to deduct those payments from your LTD benefit.
For example, a $3,000 LTD payment could be reduced to $1,800 if you receive $1,200 in CPP Disability and the policy requires that deduction. You would still receive $3,000 in total, before any other adjustments.
What Should You Do if Your LTD Benefits Are Denied or Stopped?
A denial does not mean you have no claim. Disputes can involve medical evidence, policy exclusions, missed paperwork or the insurer’s assessment of your ability to work.
Get the decision in writing, keep your policy and correspondence, continue appropriate treatment and speak with a disability lawyer promptly.
Before starting an internal appeal, get advice about whether it is the right approach. An appeal asks the insurer to reconsider its decision; a legal claim is a different process. Do not assume an internal appeal pauses your deadline to sue.
Read our guide on what to do after an LTD denial in Ontario or learn about appeals and legal claims.
How Long Do You Have to Sue an LTD Insurer in Ontario?
Ontario’s Limitations Act sets a two-year basic limitation period from discovery of a claim. How that applies to an LTD dispute depends on the facts, including the insurer’s decision and communications.
Do not assume your deadline starts with your last payment or that an appeal extends it. Your policy can also contain separate deadlines for submitting a claim or medical proof.
⚠️ Protect Your Deadline: If your insurer denies, delays or stops payments, get advice promptly. You do not need to wait until you have gathered every document before contacting our team.
Can You Be Fired While on LTD in Ontario?
Receiving LTD does not provide an absolute guarantee that your employment will continue. However, an employer can’t dismiss you for a discriminatory reason and must meet its duty to accommodate your disability to the point of undue hardship.
Your employment and insurance benefits are separate issues. Losing your job does not necessarily end an existing LTD claim. Get advice about both before signing a release or accepting that your benefits must stop.
Learn more about being fired while on disability.
What if Your Insurer Wants You to Return to Work?
Discuss any proposed return with your treating professional. The plan should address your restrictions, duties, hours and how work affects your benefits. If your insurer says you are ready but your medical team disagrees, get advice before making a decision. Learn more in our guide on returning to work after long-term disability.
The Ontario Human Rights Commission’s accommodation policy explains employers’ responsibilities.
How Samfiru Tumarkin LLP Helps Ontario LTD Claimants
Your health changed. Your rights haven’t. Our Ontario long-term disability lawyers help people challenge denied, delayed and terminated benefits and pursue the benefits or compensation they are owed.
We review your policy, assess the insurer’s reasons, identify the evidence needed and deal with the insurer on your behalf. Some members of our disability team previously represented insurance companies, giving us insight into how claims are assessed.
No upfront legal fees for LTD claims. We work on a contingency basis: you pay legal fees if we recover compensation. We explain the agreement and any applicable costs before you decide to proceed.
Ontario Clients We Have Helped
- Sandra Bullock: After Sun Life stopped this Georgetown mother’s benefits, James K. Fireman challenged the decision. Her LTD benefits were reinstated. Read Sandra’s story.
- Julie Austin: Our firm represented this Barrie teacher in a dispute over benefits following a serious brain injury. She secured $113,000 in compensation. Read Julie’s story.
Our firm has 3,000+ Google reviews across its practices. You can read our client reviews and meet Sivan Tumarkin or James K. Fireman, partners in our disability law practice.
We assist clients throughout Ontario, including Toronto, Ottawa, Mississauga, Brampton, Hamilton, London, Windsor, Kitchener, Waterloo, Barrie and Kingston. You can start with a phone or video conversation.
Get Help Recovering Your Benefits or Compensation
You do not have to handle an LTD dispute alone. Tell us what happened. We can explain your options and how our team can help, so you can focus on your health.
Frequently Asked Questions About LTD in Ontario
Is Long-Term Disability Mandatory in Ontario?
Private LTD insurance is not a universal Ontario government benefit. Check your employer’s benefits plan, association coverage or individual policy to find out whether you are insured.
Can You Get LTD for Anxiety or Depression?
Yes, if you have coverage and your symptoms meet the policy’s disability test. Medical evidence should explain how your condition affects duties such as concentration, attendance and interaction with others.
Does LTD Automatically End After Two Years?
No. Many policies change the disability test after two years. You may continue receiving benefits if you meet the new definition and the policy’s other requirements.
Can You Work Part-Time While Receiving LTD?
Possibly. Your policy may allow rehabilitation or part-time work, but earnings and work activity can affect payments and eligibility. Check the rules and discuss the plan with your treating professional before starting.
What if You Do Not Have LTD Insurance?
You can’t claim private LTD benefits without coverage. Depending on your circumstances, you may qualify for EI sickness benefits, CPP Disability, ODSP or another support program. Those programs have their own requirements.
Do You Have to Appeal Before Speaking With a Lawyer?
No. You can get legal advice as soon as a claim is denied or benefits are challenged. A lawyer can assess your policy, deadlines and whether an appeal or legal claim is appropriate.
Will You Have to Go to Trial?
Many LTD disputes resolve through negotiation. If a lawsuit is needed, settlement discussions can continue during the legal process. Our team explains each step and advises you about proposed resolutions.
What Should You Bring to a Consultation?
If available, bring your denial letter, policy or benefits booklet, insurer correspondence and relevant medical information. If something is missing, contact us anyway. We can explain what to gather next.