Canada Life LTD Denied? What to Do Next (Ontario Claimants’ Guide)
You’d always assumed that your Canada Life LTD policy was there to provide a financial safety net, and before your health took such a negative turn for the worse, you hadn’t felt the need to read all the details in the contract. Even over the past months, when, unable to work, reliant on that monthly Canada Life disability benefit check, you’ve been too occupied with attending doctor visits and therapy sessions , struggling emotionally to keep your spirits up in the face of your new reality, there has seemed little use in reading the policy’s fine print.
Now, following months and months of working with your medical professionals to fill out paperwork, numerous interviews, lengthy conversations with your Canada Life case manager, through it all suffering the indignity of surveillance — you’ve received a letter informing you that your Canada Life Long-Term Disability benefits are being terminated at the 24-month mark. Reasoning — there is “insufficient evidence that you meet the policy’s definition of total disability.”
Quick answer: What should I do if Canada Life denies or stops my LTD?
If Canada Life denies or stops your Ontario long-term disability (LTD) benefits, start by noting all deadlines in the denial letter, gathering your policy and medical records, and identifying the reason for denial. Then decide, with legal advice, whether to pursue an internal appeal, a legal claim, or both. Strengthen your evidence around functional limits (what you can and cannot do reliably at work), avoid gaps in treatment, and consider speaking with an Ontario LTD lawyer about timelines, costs, and strategy.
Canada Life’s practices — What things do you really need to know?
On the surface #1
Canada Life’s website states, “Disability insurance provides tax-free monthly income if an illness or injury prevents you from working, potentially replacing 80-90% of your paycheque,”
“Behind the curtain”:
All long-term disability insurance providers are in business to make a profit. Yes, they are obligated by contract to pay all legitimate claims. But they are in business, and, like all business owners, their goal is to minimize payouts, thereby increasing their profit. Read more in The Hidden Traps in Long-Term Disability Applications: What Insurance Companies Don’t Want You to Know.
Some attorneys have accused Canada Life and other insurers of purposely denying legitimate claims — or at least threatening to deny claims — in order to pressure claimants into accepting low settlements.
On the surface #2
Every LTD policy has a definition of disability, stating what conditions need to exist for the insured to collect benefits.
In most Canadian LTD policies, the definition changes at the two year mark, from “own occupation” to “any occupation”. Your Canada Life contract makes clear that, now that two years have elapsed, you will be entitled to benefits only if you are unable to work at any occupation for which you’re qualified by virtue of your training, education, and work experience.
“Behind the curtain”:
While the change in criteria at the 24-month mark is clearly stated in the LTD contract, the burden of proof falls on you as the insured. It is up to you to “prove” that you are still unable to perform the duties of “any occupation”.
While Canada Life is required to offer you the right to appeal their decision, they have an interest in denying claims in order to save on costs. When Canada Life has its own medical consultants review the paperwork you submit (those consultants have never met you or examined you), it may be in the company’s interest to disagree with the conclusions reached by your own medical providers.
What reasons did Canada Life give for denying your LTD benefits going forward?
Common reasons given by LTD companies for denying benefits include:
- Insufficient functional evidence – your medical records don’t prove that your condition prevents you from working
- Non-compliance – you failed to attend assessments and treatment appointments, or failed to follow medical advice
- Surveillance reports- based on videos or photos (either those you or friends posted on social media or those taken by investigators), you are more able to perform activities than you’ve claimed.
- Background checks and interviews with neighbors or healthcare providers “reveal” that you are not as disabled as you claim.
- Technical “difficulties” – In addition to all these possible excuses for denying your claim for disability benefits, insurers have been known to rely on technicalities in the insurance contract itself as reasons for denial of benefits. For example, in the “look-back period” (before your coverage had even begun), they might have now “discovered” that you had already been exhibiting symptoms of your illness – and pre-existing conditions are not covered under your disability insurance contract.
The big long-term disability decision — File an internal appeal, a legal claim, or both?
Things you should know:
- You’re hardly alone: More than half of long-term disability income claims are denied. Insurance companies count on the fact that many people who’ve suffered debilitating injuries and illnesses will simply “give up” and not persist in claiming the benefits they deserve.
- The denial letter you received has set the legal clock ticking. Your letter has stipulated a tight deadline (typically 60-180 days) for filing an internal appeal. In fact, an internal appeal may be required prior to filing a lawsuit. While you have two years in which to sue an Ontario, Canada LTD insurance company, the clock begins running now, while you’re still in the process of filing the mandatory internal appeal. For this very reason, your lawyer might recommend starting a lawsuit right away.
- The legal process can take months or years (during which you are not receiving benefits), and there is no guarantee of a favorable result.
Schedule a free call with me. I’ll help clarify your rights, prepare you for process and the procedures for filing a legal claim, internal appeal, or both.
What should you look for in selecting an Ontario long-term disability lawyer?
Even if you have not yet scheduled a meeting with a disability lawyer, you are definitely going to need expert advice going forward. Crucially important decisions must be made in order to defend your rights. While your part in gathering information is hardly over, your efforts should be guided by a professional who knows how to navigate the system.
You are going to want a lawyer who:
- Can communicate clearly and understandably with youthroughout the process of proving your claim.
- Has years of experience in fighting denials of LTD claims.
- Is familiar with the Canada Disability Benefit, the Ontario Disability Support Program (ODSP), and with the major long-term disability insurance companies, including Canada Life.
FAQ: Canada Life LTD Denials in Ontario
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Start by reading the denial letter carefully and writing down all deadlines in it. Note:
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The reason for the denial
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Any appeal deadline (often 60–180 days)
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The date of the letter, because it usually starts the two-year limitation period to start a lawsuit in Ontario
Then gather your policy, medical records, job description, and any past correspondence from Canada Life. If you can, speak with an Ontario LTD lawyer before you send anything back to the insurer.
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