If you’re unable to work due to illness or injury, you may qualify for long term disability (LTD) benefits in Ontario. These payments can replace a portion of your income when your condition prevents you from doing your job for an extended period of time.

In this 2025 guide, you’ll learn:

  • What LTD insurance is and how it works in Ontario
  • Who qualifies for benefits and how much you can receive
  • What happens after two years on LTD
  • What to do if your claim is denied
  • Whether you can be fired while on LTD or still get a severance package

Our team at Samfiru Tumarkin LLP, Canada’s most positively reviewed disability law firm, has helped thousands of people across Ontario challenge denied claims and protect their income.

Table of Contents

What is Long-Term Disability in Ontario?

Long-term disability (LTD) insurance in Ontario provides monthly income replacement when a medical condition prevents you from working. If your condition meets the policy’s definition of disability, you may receive payments while you recover — or until retirement age.

Most people access LTD through:

  • A group insurance plan from their employer, union, or association
  • A private disability insurance policy they’ve purchased themselves

These benefits typically begin after a waiting period (called the elimination period) and may last for two years or more, depending on your condition and coverage.

Key Facts About LTD Insurance in Ontario 

  • You must be unable to work in your current job (not permanently disabled)
  • LTD policies vary, but typically cover 60% to 80% of your income
  • Benefits can last until age 65 if your condition continues
  • LTD is different from short-term disability (STD) and government programs like ODSP or CPP Disability
  • You must have active coverage when your condition begins

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Who Qualifies for Long-Term Disability in Ontario?

To qualify for long-term disability (LTD) benefits in Ontario, you must meet the medical and policy requirements outlined by your insurance provider. These criteria are generally consistent across most group and private plans, though the fine print can vary.

You may qualify for LTD if:

  • You have an LTD insurance policy (through your job or a private plan)
  • You’ve been diagnosed with a medical condition that prevents you from working
  • Your condition has lasted — or is expected to last — for an extended period of time
  • You have supporting medical evidence from your doctor
  • You are within the elimination period (typically 90–120 days since stopping work)

Conditions that Often Qualify for LTD

Many different illnesses and injuries can lead to LTD claims, including:

It’s not about the diagnosis — it’s about how your condition prevents you from working.

📋 Not sure if your condition qualifies? Explore our guide on What Medical Conditions Qualify for Disability in Canada.

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What Does “Totally Disabled” Mean for LTD in Ontario?

In Ontario, being “totally disabled” under a long-term disability (LTD) policy doesn’t mean you’re permanently incapacitated. It means your medical condition stops you from performing the essential duties of your job — or, later on, any job that fits your background.

Two Definitions of “Total Disability”

1. Own Occupation

For the first two years on LTD, most policies define “total disability” as the inability to do your own occupation — the specific job you had before you became disabled.

“General Dynamics Land Systems-Canada is conducting a modest workforce reduction based on current volume and workload,” Hancock said.

2. Any Occupation

After two years, the test becomes stricter. You must be unable to work in any occupation for which you are reasonably suited based on:

  • Your education
  • Your training
  • Your past work experience

This is the point where many LTD claims are cut off.

⚠️ Important: “Any occupation” does not mean any job. Under Ontario law, you may still be considered totally disabled if you can’t work in a role that pays at least 60% of your pre-disability income.

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How Much Does Long-Term Disability Pay in Ontario?

Long-term disability (LTD) policies in Ontario cover between 60% and 80% of your regular income. The exact amount depends on your insurance plan, your salary before the disability, and any deductions that apply.

Typical LTD Payment Details

  • Income replacement: Usually 60–80% of your gross earnings
  • Payment frequency: Monthly
  • Maximum benefit: Many policies have a cap (e.g., $3,500/month), regardless of your salary
  • Tax status:
    • If your employer pays the premiums → LTD payments are taxable
    • If you pay the full premium → Your LTD benefits are tax-free

🔎 Example: An employee earning $70,000/year with 66.7% LTD coverage would receive about $3,889/month before taxes (if applicable), assuming there’s no policy cap or deductions.

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How Long Can You Stay on Long-Term Disability in Ontario?

You can stay on long-term disability (LTD) in Ontario as long as you continue to meet your insurer’s definition of disability, up to the maximum length outlined in your policy — often until age 65.

LTD Coverage Typically Ends When:

  • You’re no longer considered ‘totally disabled’
  • You return to work
  • You reach the policy’s time limit (e.g., 5, 10 years, or age 65)
  • You pass away

For most group insurance plans in Ontario, coverage ends at age 65 — the typical retirement age under the Canada Pension Plan. Private policies may offer different terms.

Check Your Policy

Always review your LTD policy carefully to confirm:

  • The maximum benefit period
  • Whether your policy includes an own occupation or any occupation clause
  • Any requirements for ongoing medical proof

⚠️ If your benefits are cut off early — even before the end of your coverage period — you may have a legal claim. Contact Samfiru Tumarkin LLP for a FREE consultation to review your options.

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What is the Elimination Period for LTD in Ontario?

The elimination period is the waiting period between the date you stop working and the date your long-term disability payments begin. Most LTD policies in Ontario have an elimination period of 90 to 120 days, but some can be shorter or longer.

You must remain continuously disabled during this time to qualify for benefits.

Key Facts About the Elimination Period

Example: If your LTD policy has a 90-day elimination period and your disability began on January 1, your first LTD payment would likely arrive in early May — after the period ends and claim processing is complete.

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How to Apply for Long-Term Disability Benefits in Ontario

Applying for long-term disability (LTD) benefits in Ontario involves submitting detailed medical and personal information to your insurance provider. Most claims require forms from you, your doctor, and sometimes your employer.

Steps to Apply for LTD Benefits

1. Confirm Your Coverage

Make sure you have long-term disability insurance through a workplace group plan or private policy.

2. Speak With Your Doctor

Your physician must support your claim. Don’t stop working without first getting their medical opinion and documentation.

3. Get the Applicant Forms

Most insurers will provide:

  • A notice of claim form (completed by you)
  • An attending physician’s statement (completed by your doctor)
  • An employer’s report (if part of a group plan)

4. Submit All Required Documents

Include:

  • Your completed forms
  • Medical records
  • Any test results or treatment plans
  • A short cover letter listing the enclosed items

5. Prepare for a Call or Interview

Some insurers may contact you directly to discuss your claim. Be honest, concise, and clear — and avoid speculation about your condition.

6. Wait for a Decision

Once submitted, it may take several weeks for the insurance company to assess your application and notify you of approval or denial.

⚠️ Many LTD claims are denied due to incomplete forms or missing medical evidence. Contact Samfiru Tumarkin LLP if you’re unsure about your application or face delays from your insurer.

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Why Are Long-Term Disability Claims Denied in Ontario?

Even if your condition is serious and your doctor supports your claim, insurance companies often deny LTD benefits in Ontario. Denials are usually based on technicalities, vague definitions, or claims that your evidence doesn’t meet the policy’s standard.

Common Reasons for LTD Claim Denial

🟢 Real Results: Surveillance doesn’t always mean your claim is doomed. When an insurer used photos to deny teacher Julie Austin’s LTD claim, our legal team proved the footage actually supported her disability. Read about her legal victory.

For a more thorough understanding of these reasons, see our FAQ on Common Reasons for Denial in LTD Claims.

⚠️ Even strong claims are denied without warning. If your LTD application is rejected, don’t give up — contact us immediately for a FREE consultation to discuss your legal options.

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What Happens After 2 Years on LTD in Ontario?

At the two-year mark, most long-term disability (LTD) policies in Ontario shift the definition of “totally disabled.” This is a common point where insurance companies reassess — and often cut off benefits.

The Change: “Own Occupation” to “Any Occupation”

First 2 Years (Own Occupation Test)

You qualify for LTD if your condition prevents you from performing the essential duties of your own job.

After 2 Years (Any Occupation Test)

You must now prove you’re unable to work in any occupation that you are reasonably suited for, based on:

  • Education
  • Training
  • Experience

This change makes it harder to stay on LTD — especially if your insurer argues that you can return to work in a lower-paying or sedentary role. At this stage, insurers often conduct detailed reassessments, including medical and vocational evaluations. Strong medical documentation and expert reports are crucial to proving that you still meet the definition of total disability.

⚠️ You may still qualify if: You can’t work in a role that pays at least 60% of your pre-disability income or perform substantial duties in a comparable job.

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What to Do If Your Long-Term Disability is Denied or Cut Off in Ontario

If your long-term disability (LTD) claim is denied in Ontario or your benefits are suddenly cut off — even after months or years of approval — you’re not alone. Many legitimate claims are rejected, often without clear justification, leaving people confused and overwhelmed.

Insurance companies may argue that you’re no longer “totally disabled,” that your doctor hasn’t provided enough proof, or that you’re fit to return to any occupation. But in many cases, these decisions are flawed, unfair — and legally challengeable.

Steps After a Denial

1. Review the Denial Letter

Your insurance company must explain why they denied your claim. Look for references to:

  • Medical evidence they say is missing or insufficient
  • Surveillance, assessments, or internal definitions
  • The policy’s “total disability” test

2. Be Wary of the Appeal Process

Insurers often offer an internal appeal — but it’s rarely effective. You’re asking the same company to reverse their own decision, with no independent oversight.

🛑 You only have a limited time to act. In Ontario, you typically have 2 years from the date of denial to start a legal claim. Don’t wait — speak to us now to protect your rights.

3. Contact a Disability Lawyer Right Away

The better path is to start a legal claim, not an appeal. At Samfiru Tumarkin LLP, our lawyers know how to hold insurers accountable and recover the benefits our clients are rightfully owed.

✋ Why Legal Action Is Better Than Appealing

If your LTD claim was denied or terminated, you have two options:

  • File an internal appeal with the insurance company
  • Start a legal claim for wrongful denial of benefits

⚠️ We strongly recommend legal action. In our decades of experience, insurers rarely reverse their decisions unless you present substantial new medical evidence — and most appeals are denied. A legal claim is often the only way to apply real pressure.

🟢 Real Results: When Sandra Bullock’s long-term disability benefits were wrongly cut off, our team took legal action — and won. The insurance company reinstated her benefits after we challenged their denial and brought national media attention to her case.

If your long-term disability in Ontario is cut off or denied, don’t give up. Contact Samfiru Tumarkin LLP for a FREE consultation — we’ll review your claim and help you get the compensation you deserve.

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Which Insurance Companies Deny LTD in Ontario?

Every major insurance company in Ontario denies long-term disability (LTD) claims — even when doctors support the claim and the individual clearly can’t work. These denials are often based on vague policy language, unfair interpretations, or incomplete medical assessments.

At Samfiru Tumarkin LLP, we regularly take legal action against Canada’s largest disability insurers, and we know exactly how each one handles LTD claims — Contact us today to find out how we can help.

We help clients challenge LTD denials from:

Denied by a Different Insurance Company!

Even if your insurer isn’t listed here, our disability lawyers may still be able to help. We’ve handled thousands of claims involving group and private LTD policies across Ontario. [See our full list]

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Can You Be Fired While on Long-Term Disability in Ontario?

No — your employer can’t fire you just because you’re on long-term disability. That would be illegal, and considered disability discrimination under the Ontario Human Rights Code, which protects employees who are ill, injured, or unable to work due to a medical condition

What About “Undue Hardship”?

Ontario law requires employers to accommodate an employee’s disability to the point of undue hardship — but this is a very high standard.

Just because an accommodation is inconvenient or costs money doesn’t mean your employer can legally refuse it or terminate your employment.

In fact, it is extremely difficult for an employer to prove undue hardship. Most companies are expected to make reasonable efforts — such as modifying job duties, approving medical leaves, or waiting for a return-to-work timeline — before even considering termination.

The Only Narrow Exception: Frustration of Contract

In rare cases, if your medical condition makes a return to work nearly impossible in the foreseeable future, your employer may argue that the employment contract has been frustrated.

🔗 For more on this topic, read our Employment Issues and Long-Term Disability FAQ.

⚠️ Don’t assume your termination was legal. If you were fired while on LTD — even if your employer cited frustration of contract — speak with our lawyers for a FREE consultation. You are likely owed significant compensation.

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Do You Get Severance While on LTD in Ontario?

Yes — in many cases, employees on long-term disability (LTD) are still entitled to severance pay in Ontario if their employment is terminated. Your employer can’t use your medical leave or disability status as an excuse to avoid paying what you’re legally owed.

You still qualify for both:

  • Termination pay under the Employment Standards Act (ESA)
  • Full common law severance pay — which can be up to 24 months’ pay
  • You may also continue to receive LTD benefits from your insurer.

Severance vs. LTD: How They Interact

Receiving LTD benefits does not cancel out your right to severance — but it can affect how the payments are handled. For example:

  • If you receive a severance package, your LTD insurer may try to deduct it from your benefits
  • The structure of the severance agreement matters — it impacts taxability and offsets
  • A Samfiru Tumarkin LLP lawyer can help you maximize both — LTD and severance

🔎 Want the full breakdown? Read our guide on Severance and Long-Term Disability in Ontario.

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Other Disability Benefits in Ontario

If you’re unable to work due to a medical condition, long-term disability (LTD) isn’t your only possible source of financial support. Depending on your situation, you may also qualify for one or more of the following programs:

Canada Pension Plan Disability (CPP Disability)

A federal disability benefit available to Canadians who have made recent CPP contributions and are considered “severely and prolonged” disabled. Many LTD insurers require you to apply for CPP Disability, and may deduct payments from your monthly LTD benefits.

➡️ Learn more: CPP Disability Benefits in Canada

Ontario Disability Support Program (ODSP)

ODSP provides monthly financial assistance and health benefits to Ontario residents with significant disabilities and limited income. You can sometimes qualify for both ODSP and LTD, but your LTD payments may reduce how much ODSP pays.

⛔ ODSP or WSIB Denial? Unfortunately, Samfiru Tumarkin LLP does not assist with ODSP or WSIB claim denials. For support, please contact Legal Aid Ontario.

Disability Tax Credit (DTC)

The DTC is a non-refundable tax credit that reduces the amount of income tax you may owe. If approved, you can claim it retroactively for up to 10 years — and it can also support eligibility for other programs like the RDSP.

➡️ Learn more: Disability Tax Credit Guide

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Speak to an Ontario Disability Lawyer Today

If your long-term disability claim in Ontario has been denied, delayed, or cut off, you’re not alone — and you don’t have to face your insurance company on your own.

At Samfiru Tumarkin LLP, we are Canada’s leading disability law firm, with a strong track record representing individuals across the province. Our experienced long-term disability lawyers in Ontario understand how insurers operate — and how to push back when they act unfairly.

Whether you’re applying for benefits, appealing a denial, or dealing with a cut-off after two years, we can help you every step of the way.

✅ Insider Advantage: Sivan Tumarkin, co-founding partner of Samfiru Tumarkin LLP, previously worked for insurance companies. Today, he uses that knowledge to advocate for disabled individuals across Ontario. He knows insurers’ strategies, and how to level the playing field in your favour.

We also help with related insurance claims:

💲 No Win, No Fee: Our disability lawyers work on a contingency basis — you don’t pay unless we recover compensation.

Free Consultation – Speak With Us Today

Book your FREE consultation with a disability lawyer in Toronto. We’ll deal with the insurance company so you can focus on your health — not the stress of a denied claim. Don’t give up your rights. That’s exactly what the insurance company is hoping for.

Connect with Canada’s top disability law firm today. Call us at 1-855-821-5900 or email help@disabilityrights.ca to get started. You can also watch our popular Disability Law Show, explore our Free LTD FAQs, or join a Livestream Q&A for real-time answers from the Samfiru Tumarkin LLP team.

Why Canadians Trust Samfiru Tumarkin LLP

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