If you receive Canada Life long-term disability (LTD) benefits, the two-year mark can be an important point in your claim. Many LTD policies change the definition of disability around this time, which can make it harder to qualify for continued benefits.
During the initial period of an LTD claim, your policy may focus on whether your medical condition prevents you from performing your own occupation. After the change of definition, Canada Life may assess whether you can perform another occupation that meets the requirements set out in your policy.
The exact timing and definition vary by plan. Canada Life itself advises group-benefit members to check their plan booklet for the coverage that actually applies to them. If Canada Life has told you that your benefits will stop at or around the two-year mark, review the decision carefully before assuming that the insurer is correct.
On This Page:
- 1. What Happens After 2 Years?
- 2. Own Occupation vs. Any Occupation
- 3. Why Benefits Can Be Stopped
- 4. Medical & Vocational Evidence
- 5. What to Do If Benefits Are Cut Off
- 6. FAQs
What Happens to Canada Life LTD Benefits After 2 Years?
For many people receiving long-term disability benefits, the most important change around the two-year mark is a change in the policy’s definition of disability.
The exact wording of your Canada Life LTD policy controls. However, many disability plans use two stages:
- Own occupation: Are you medically unable to perform the essential duties of the occupation you were doing when you became disabled?
- Any occupation: Are you medically unable to perform another occupation that satisfies the requirements set out in the policy?
Canada Life’s publicly available materials demonstrate that some of its plans use a 24-month own-occupation period before applying a broader employment test. However, not every Canada Life policy is identical. Your plan may use different wording, timelines, income thresholds or occupational requirements.
That distinction matters. Canada Life can’t simply stop LTD benefits because your claim has reached its second anniversary. The question is whether you continue to satisfy the definition of disability that applies under your particular policy.
Canada Life Own Occupation vs. Any Occupation
Own occupation period
During an own-occupation period, the focus is generally on whether your illness or injury prevents you from performing the important duties of your regular occupation.
For example, a nurse with significant physical limitations might be unable to safely lift patients, remain on their feet for long shifts or respond to emergencies. The fact that they could potentially perform some lighter activities doesn’t necessarily mean they can perform their own occupation.
Any occupation period
If the definition changes, Canada Life may consider whether you are capable of performing other work. But “any occupation” doesn’t necessarily mean literally any job whatsoever.
The actual test depends on the wording of the policy. Relevant considerations can include:
- your medical restrictions and functional limitations;
- your education;
- your training;
- your work experience;
- the duties of the proposed occupation; and
- any earnings or “gainful employment” requirement contained in the policy.
Learn more about the broader change of definition in long-term disability claims.
Why Can Canada Life LTD Benefits Be Stopped After 2 Years?
A Canada Life LTD claim may be reviewed around the two-year mark if the definition of disability is changing. Benefits can be terminated if Canada Life concludes that you no longer satisfy the disability test contained in your policy.
Disagreements can arise over issues such as:
- Ability to perform another occupation: Canada Life may conclude that your medical restrictions still allow you to perform different work.
- Medical evidence: The insurer and your treating doctors may have different views about the severity or functional impact of your condition.
- Improvement in your condition: Updated medical information may lead Canada Life to conclude that your ability to function has improved.
- Vocational evidence: Canada Life may identify occupations it believes are consistent with your abilities, education, training and experience.
- Return-to-work evidence: A gradual or attempted return to work can become relevant to whether you remain disabled under the policy.
A disagreement doesn’t automatically make Canada Life’s decision legally correct. If your treating doctors continue to support your inability to work and Canada Life ends your benefits, the decision may be challenged.
If your benefits have already been stopped, read our guide to a Canada Life disability claim denial.
Medical Evidence at the Canada Life 2-Year Mark
Medical evidence remains central to your LTD claim after the definition of disability changes.
Canada Life’s own LTD forms ask doctors for information about matters such as diagnosis, symptoms, treatment, prognosis, ability to work and functional limitations. Depending on the claim, additional medical information may also be requested.
Your medical documentation should accurately explain not only what condition you have, but also how that condition affects your ability to function and work.
Depending on your condition and occupation, relevant limitations could involve:
- sitting, standing, walking or lifting;
- concentration, memory or decision-making;
- energy, stamina or fatigue;
- attendance and reliability;
- interacting with other people;
- tolerance for stress or deadlines; or
- side effects caused by medication or treatment.
A diagnosis by itself may not explain whether you can perform another occupation. Functional evidence can therefore become particularly important around a change of definition.
If Canada Life has asked your doctor to complete medical paperwork, see our guide to the Canada Life Attending Physician Statement.
Can Canada Life Use a Vocational Assessment?
Vocational evidence can become relevant where the policy asks whether you are capable of performing another occupation.
An assessment may consider your education, training, previous employment, transferable skills and medical restrictions. Canada Life may rely on this information when determining whether another occupation satisfies the definition in your policy.
If Canada Life identifies another occupation that it believes you can perform, that doesn’t necessarily settle the issue. The proposed work should be considered against the actual wording of the policy and your real medical abilities.
Can Canada Life Ask for an Independent Medical Examination?
Depending on your policy and the circumstances of the claim, Canada Life may request additional medical information or an independent medical examination.
Don’t simply refuse a medical assessment because you disagree with the request. Your policy may require reasonable cooperation with the claims process, and refusing without advice could affect your benefits.
If you’re concerned about an assessment request, speak with a disability lawyer before deciding how to respond.
What If Canada Life Says You Can Return to Work?
A return-to-work recommendation should be considered alongside your medical restrictions and your doctor’s opinion about what you can safely do.
Canada Life’s disability forms specifically ask doctors about expected return-to-work dates and whether a return should be full-time, part-time or gradual. If your doctor believes you aren’t ready to return — or that you require modified hours or duties — those restrictions should be clearly documented.
You shouldn’t return to work before you are medically able simply because your LTD benefits may be reviewed or terminated.
If a gradual return is appropriate, the plan should reflect your actual functional abilities and medical restrictions.
Can You Travel While Receiving Canada Life LTD?
Travelling while receiving LTD benefits isn’t necessarily prohibited. Whether a trip affects your Canada Life claim depends on your policy, medical condition, treatment plan and the circumstances of the travel.
Before travelling, check whether your policy contains geographic, treatment or notification requirements. You should also consider whether the trip could cause you to miss treatment, medical appointments or an assessment requested as part of your claim.
The fact that you can travel doesn’t automatically mean that you are capable of working. However, activities that are materially inconsistent with your documented medical restrictions could become relevant to the assessment of your claim.
Read more about Canada Life disability benefits and travel.
Are Canada Life Long-Term Disability Benefits Taxable?
Whether your LTD benefits are taxable generally depends on how the disability plan premiums were paid.
- If you paid the full premium yourself: disability benefits are generally received tax-free.
- If your employer contributed to the premium: disability benefits are generally subject to income tax, although employee contributions can affect the taxable amount in some plans.
The tax treatment can depend on the structure and contribution history of your particular plan. If you’re unsure, review your plan information and speak with a tax professional.
What to Do If Canada Life Cuts Off Your LTD Benefits After 2 Years
If Canada Life terminates your LTD benefits around the two-year mark, don’t assume the decision is final.
Start by reviewing the termination letter. Identify:
- the definition of disability Canada Life applied;
- the medical evidence it relied on;
- whether Canada Life identified another occupation it believes you can perform;
- whether important medical information is missing or misunderstood; and
- any deadline mentioned in the letter.
Should you appeal a Canada Life LTD termination?
Canada Life may provide an opportunity to submit additional information or request reconsideration of its decision.
An internal appeal can be useful in some cases — particularly where important medical information was missing or the reason for the denial can be addressed with stronger evidence. In other situations, repeated internal appeals may not be the best approach.
How Samfiru Tumarkin LLP Can Help With a Canada Life LTD Cutoff
Samfiru Tumarkin LLP’s disability lawyers have years of experience representing people whose long-term disability benefits have been denied or terminated, including claims involving Canada Life and other major Canadian insurers.
When we review a Canada Life LTD cutoff, we can examine:
- your LTD policy and change-of-definition wording;
- Canada Life’s reasons for terminating the claim;
- medical evidence from your doctors and treatment providers;
- vocational or transferable-skills evidence;
- whether an identified alternative occupation actually satisfies the policy; and
- the legal options available to challenge the decision.
Many disability disputes are resolved through negotiation without a trial. If legal action is appropriate, our team can deal with the insurer on your behalf and work toward a resolution of your claim.
Consultations for disability claims are free. If we take on your case, disability matters can be handled on a contingency-fee basis, meaning legal fees are paid from the recovery rather than upfront.
➡️ Contact Samfiru Tumarkin LLP to speak with a disability lawyer about your Canada Life LTD claim.
Canada Life LTD After 2 Years: Frequently Asked Questions
What happens to Canada Life long-term disability benefits after 2 years?
Many LTD policies change their definition of disability around the two-year mark. The initial test may focus on whether you can perform your own occupation, while the later test may consider whether you can perform another occupation that meets the requirements in your policy. The exact timing and definition depend on your Canada Life plan.
Does Canada Life automatically stop LTD benefits after 2 years?
No. Reaching two years doesn’t automatically end a Canada Life LTD claim. If you continue to satisfy the applicable definition of disability under your policy, you may remain entitled to benefits.
What does “any occupation” mean for Canada Life LTD?
It depends on the policy. The test can consider whether you are medically capable of another occupation and whether that work satisfies requirements involving education, training, experience or earnings. “Any occupation” doesn’t necessarily mean literally any job.
Can Canada Life stop my benefits if my doctor says I still can’t work?
Canada Life can make its own decision about whether you satisfy the policy, even if your treating doctor supports continued disability. However, your doctor’s evidence can be extremely important. If Canada Life terminates benefits despite ongoing medical support, the decision may be challenged.
Should I appeal if Canada Life cuts off my LTD after two years?
It depends on why the claim was terminated and what evidence is available. An internal appeal can be helpful in some cases, but it isn’t necessarily your only option. Speak with a disability lawyer before deciding so you understand your legal rights and any limitation period that may apply.
Can Canada Life make me return to work after two years?
Canada Life may assess whether you are medically capable of returning to work or performing another occupation, but your medical condition and functional restrictions remain important. If your doctor says you aren’t ready to return, make sure that opinion and the reasons for it are clearly documented.
How long can Canada Life LTD benefits continue?
The maximum benefit period depends on your policy. Some LTD plans can continue benefits for an extended period, potentially to a specified age, as long as the claimant continues to meet the policy’s definition of disability and other requirements. Check your Canada Life plan booklet for the rules that apply to you.
Independent Legal Information: This page was prepared by Samfiru Tumarkin LLP as an independent legal resource for people dealing with disability claims. Samfiru Tumarkin LLP is not affiliated with or endorsed by Canada Life. References to issues that may arise during disability claims describe general legal and insurance principles or circumstances that can arise in individual cases. Your rights depend on your policy and individual circumstances.