This article contains general information and is not legal advice. For qualified legal advice, please call 604-876-7000 to get in touch with a BC Disability Insurance Lawyer near you.

*Please note that if you are a union employee and are subject to a collective agreement that references a disability insurance plan, you should immediately discuss your claim with your union representative. Our firm may not be able to assist in these situations. Limitation periods can be very short—sometimes weeks—when a union grievance process is available.

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Learning that your long-term disability (LTD) benefits are being terminated is anxiety-inducing, especially if you believe your health hasn’t changed. Insurers in Canada periodically review ongoing claims, and a benefit termination can happen for a range of reasons.

If your LTD benefits have been cut off, you’re not alone. What you should know now is that it’s not the end of the road. 

This article walks through why long-term disability benefits are sometimes discontinued, what a termination letter does and doesn’t mean, and practical steps to consider if you’re dealing with terminated disability benefits.

Why Would Long-Term Disability Benefits Be Cut Off?

Typically, when you begin receiving disability benefits, your policy requires you to provide ongoing proof of disability. Insurers periodically reassess whether a claimant continues to meet the policy’s definition of disability. 

A benefits termination can follow a routine review, or it can be prompted by something more specific. Common reasons include:

1. An updated medical review that the insurer says shows improvement
2. An independent medical examination (IME) arranged by the insurer
3. Surveillance evidence, in some cases
4. A shift from the “own occupation” definition to the “any occupation” definition, which often occurs around the two-year mark of a claim
5. The insurer’s position that medical improvement has occurred
6. Missing paperwork or outdated medical records on file
7. Failure to attend a requested medical or functional assessment

What To Do If Your LTD Benefits Get Cut Off

1. Read the termination letter carefully, more than once, to understand exactly what the insurer is saying. If needed, review the letter with a lawyer.
2. Identify the insurer’s stated reason for the termination, this shapes what happens next.
3. Gather updated medical documentation from your treating physicians and specialists.
4. Continue any recommended treatment, since gaps in treatment can sometimes complicate a claim.
5. Note any appeal or review deadlines mentioned in the letter.
6. Keep copies of all correspondence with the insurer, including emails, letters, and call notes.
7. Consider speaking with a disability insurance lawyer, particularly if you’re unsure how to interpret the termination or what steps to take next.

Insurers terminating benefits are required to explain their reasoning, and that explanation is often the starting point for figuring out what is needed to maintain benefits.

Does a Benefit Termination Mean You No Longer Qualify?

A benefit termination doesn’t necessarily mean you no longer qualify. 

Most disability insurance policies require claimants to continue demonstrating that they meet the applicable definition of disability, and insurers periodically reassess claims against that standard.

A termination reflects the insurer’s current view of the medical evidence, but medical opinions can differ, particularly between a treating physician who has followed a patient over time and a consultant retained by the insurer for a single assessment.

Common Reasons Insurers Say Someone Can Return to Work

When an insurer takes the position that a claimant can return to work, it’s usually based on one or more of the following:

• Improved results on medical testing or diagnostic imaging
• A functional capacity assessment suggesting a certain level of physical or cognitive ability
• Surveillance evidence the insurer interprets as inconsistent with reported limitations
• A treating physician’s opinion that differs from the insurer’s consulting physician
• An occupational or vocational assessment identifying suitable work
• A transition from “own occupation” to “any occupation” under the policy, which broadens the range of work considered

When It May Be Appropriate to Speak with a Disability Lawyer

Not every terminated claim requires legal help, but there are situations where speaking with a disability insurance lawyer may be worth considering, such as:

• Benefits stopped despite what feels like an ongoing, well-documented disability
• A disagreement between your treating providers and the insurer’s medical evidence
• Disputes involving the shift from “own occupation” to “any occupation”
• Complex or multiple overlapping medical conditions
• A prior appeal that was also denied
• General uncertainty about what steps to take next

Our lawyers are experienced in disability insurance disputes and can help explain the appeal process, review the insurer’s stated reasons, and identify what kind of additional evidence may be relevant to your specific policy and claim.

Frequently Asked Questions

Why did my LTD benefits get cut off?

LTD benefits are usually terminated after a periodic review of medical evidence, an independent medical examination, a change in policy definition (such as own occupation to any occupation), or missing documentation. The specific reason should be outlined in your termination letter.

Can long-term disability benefits be terminated?

Yes. Most LTD policies require ongoing proof of disability, and insurers can terminate benefits if they determine, based on the available evidence, that a claimant no longer meets the applicable definition of disability under the policy.