Sun Life Faces $500K Lawsuit from Toronto Alzheimer’s Patient Denied Disability Benefits

During the pandemic, Toronto lawyer Kara Goldsmith began noticing troubling symptoms while working at a major communications company. She experienced memory loss, confusion, and other signs of cognitive decline that impacted her job performance.

Two years later, she lost her job due to restructuring. Shortly after, doctors diagnosed her with early-onset Alzheimer’s disease.

Goldsmith applied for long-term disability (LTD) benefits through her insurer, Sun Life, but her claim was denied. The insurer argued that her disability began after her coverage ended and that there was “no continuous illness related absence” before she left her job.

As reported by the Toronto Star, Goldsmith is now suing Sun Life for breach of contract, alleging that her symptoms began well before her termination and that the insurer acted in bad faith.

The Legal Battle

According to her statement of claim, Goldsmith is seeking $500,000 in damages, or a declaration that she was disabled during the time she was insured, entitling her to retroactive long term disability ontario benefits plus interest.

Sun Life, in its defence, denies she is entitled to benefits, arguing that:

• LTD coverage requires proof of being “totally disabled” while insured.
• A claim must be filed within certain timelines under the policy.
• The medical evidence did not establish she was “totally disabled” before her termination.

Broader Issues With Dementia and Insurance

Goldsmith’s story highlights a wider problem faced by Canadians living with dementia. As the Toronto Star reports:

• A Brainwell Institute report found that only 41% of family doctors feel prepared to diagnose dementia, and the average wait time for a diagnosis is 21 to 28 months.
• The Alzheimer Society of Canada says many families report vulnerability when insurance frameworks require a formal diagnosis, even though symptoms often develop years before confirmation.

This delay leaves many patients in limbo — unable to work, but without insurance coverage to support them.

Lawyer’s Reaction: Why This Case Matters

Sivan Tumarkin, a Toronto long-term disability lawyer and co-founder of Samfiru Tumarkin LLP, says Goldsmith’s lawsuit reflects a common strategy used by insurers when dealing with serious health conditions.

“We see this pattern all the time. Insurance companies deny legitimate claims, not because the person isn’t disabled, but because they know many people won’t push back,” said Tumarkin.

“When you’re dealing with dementia, Alzheimer’s, or even serious mental health issues, you feel powerless. Insurers count on that. They rely on the fact that most claimants won’t have the strength or support to challenge them.”

• See Also: Common Reasons Long-Term Disability Claims Are Denied

He continued by arguing that, “Canadians pay into these policies for years, and when they need help the most, insurers shouldn’t be allowed to hide behind technicalities and red tape.”

Tumarkin, who has handled thousands of cases against Canada’s largest insurance companies, stresses that employees experiencing cognitive decline or other medical conditions should not wait for a formal diagnosis before getting legal advice if their disability claim is denied.

Impact on Families

Goldsmith’s husband, Charles, says the denial has been devastating. With her care costs rising and no LTD benefits to rely on, they’ve faced severe financial and emotional strain.

They chose to share her story to raise awareness for others in similar situations.

“What about other Alzheimer’s patients who don’t have family support? Where do they go?” Charles asked.

Takeaway for Canadians

If you or a loved one are denied long-term disability benefits for dementia, Alzheimer’s disease, mental health struggles, or any other medical condition:

• Don’t give up — many denials can be successfully appealed or overturned.
• Seek legal advice early — delays in diagnosis should not erase your rights.
• Know your policy — insurers must act in good faith and follow the contract.

Speak to a Disability Lawyer

If your LTD claim has been denied or cut off, you don’t have to face your insurer alone. The team at Samfiru Tumarkin LLP has helped thousands of Canadians get the compensation they’re owed.

📞 Contact us today for a free consultation to learn how we can help.