Maximum Benefit Period: What It Means for Disability Insurance in Canada

Understanding your maximum benefit period is one of the most important parts of any disability insurance policy. It determines how long your insurance company must pay you benefits if you can’t work due to illness or injury. Whether you have short-term disability (STD) or long-term disability (LTD) coverage through your employer or a private plan, knowing this timeline helps you plan ahead and protect your income.

What Is a Maximum Benefit Period?

Your maximum benefit period is the longest amount of time your insurer will make disability payments. Once you reach this limit, payments stop — even if you’re still unable to work.

This applies to both:

• Short-term disability
• Long-term disability

Insurance companies set this limit in your policy contract, along with the benefit amount, waiting period, and definition of disability.

Maximum Benefit Period: Simple Meaning

Plainly put, it’s the insurance company’s cut-off date for disability payments.

Once that date arrives, the insurer has no obligation to continue paying unless your policy states otherwise.

Short-Term Disability Maximum Benefit Period

Most short-term disability (STD) plans are designed to cover temporary illnesses or injuries. They replace a portion of your income before long-term disability kicks in.

Typical maximum benefit periods for short-term disability include:

• 15 weeks (common in EI-integrated plans)
• 17–26 weeks
• Sometimes up to 6 months, depending on the employer

Your exact limit comes from your policy or benefits booklet (like the ones provided by Canada Life). After this point, employees usually transition to long-term disability if they’re still unable to work.

Long-Term Disability Maximum Benefit Period

The long term disability maximum benefit period is much longer and can vary widely. It can be:

• 2 years (rare, but sometimes used in limited plans)
• 5 years
• To age 65 (most common)
• To age 67 or 70 (usually in union or higher-value plans)

Why It Matters

Your maximum benefit period affects:

• Your financial stability
• Your long-term recovery planning
• Whether you need additional insurance
• How insurers assess your claim at certain milestones

For example, at the two-year mark, most LTD policies switch from the “own occupation” test to the tougher “any occupation” test — also known as the “change in defintion.”

Can You Extend the Period?

Most disability policies do not allow extensions. The period is locked in once the policy is issued.

However, you can challenge the insurer if they cut off benefits before the period ends. This happens frequently when:

• The insurer says you can return to work
• Your medical evidence is ignored
• They rely on paper reviews or an insurance doctor
• They argue you don’t meet the “any occupation” test

What Happens When Your Maximum Benefit Period Ends?

When disability benefits run out, you may need to explore:

• CPP Disability (if long-term medical limitations exist)
• Workplace accommodations
• Early retirement options (if applicable)
• Other government supports

Talking to a disability lawyer can help you understand what options you have as you approach the end of your policy.

Denied Before Your Maximum Benefit Period Ends? We Can Help

If your insurer tries to end your payments early — especially before your the period is up — you still have strong legal rights.

At Samfiru Tumarkin LLP, our disability lawyers across Canada have helped thousands of people secure the benefits they’re owed. We know how insurance companies operate, and we know how to push back.

There are no upfront fees. You don’t pay unless we win.

📞 Call us at 1-855-821-5900, email help@disabilityrights.ca, or use our online form for a FREE consultation.