Long Term Disability for Mental Health in Canada

Yes. Depression, anxiety, and many other mental health conditions are legally recognized as disabilities in Canada and most insurance policies. If a mental illness substantially limits your ability to work, you may qualify for long term disability benefits under your insurance policy.

You do not need a physical injury to qualify. What matters is whether your symptoms prevent you from performing your job duties consistently and safely.

Every claim is assessed on how the condition affects your ability to work, regardless of the diagnosis on paper.

If you have been diagnosed with one of these conditions and your insurance company has denied or terminated your benefits, you have options. Below, we walk through why claims get denied, how to strengthen your case, and what to do next.

Mental health LTD claims are denied more often than physical injury claims because symptoms cannot be measured with X rays or blood tests. Common denial reasons include:

A denial does not mean you do not qualify. It often means the insurer is protecting their bottom line. Our team at MacGillivray Disability Law is here to listen, review your situation, and help you understand your options.

Insurance companies set a high bar for mental health LTD claims. While approval is unique, focusing on these four areas can give your claim a stronger chance of success:

Insurance companies actively investigate mental health LTD claims. Knowing their tactics helps you protect your claim.

If your claim is denied, take these steps right away:

1. Hold off on filing an internal appeal. These appeals stay within the insurance company and often result in the same decision.
2. Continue your treatment. Stopping treatment hurts your case.
3. Document everything. Save all letters, emails, and call logs from the insurer.
4. Tell your doctor about every symptom. Do not downplay how you feel.
5. Speak to a disability lawyer before responding to the insurer.

A legal claim is usually faster and more effective than an internal appeal. However, taking legal action can feel intimidating, especially when you’re already dealing with so much. At MacGillivray Disability Law, we offer free consultations to help you understand your options, even if you’re not sure you’re ready to take action. Reach out anytime, we’re here to help.

Most LTD policies have a critical milestone at the two year mark:

First 2 years: You qualify if you cannot perform your own job.

After 2 years: You must prove you cannot perform any job you are reasonably suited for.

This change in definition is when many mental health claims get cut off, even when the person is still unable to work.

If your benefits were terminated at the 2 year mark, you may still qualify. A disability lawyer can challenge the termination.

Some LTD policies also include a two year cap on mental health benefits. Read your policy carefully. If you are approaching this cap, get legal advice immediately.

The following are publicly available Canadian court decisions involving mental health and disability benefits. They are referenced here for educational purposes only.

Fidler v. Sun Life Assurance Co. of Canada, 2006 SCC 30

In this Supreme Court of Canada decision, the court upheld an award of punitive damages against an insurer that denied LTD benefits to a claimant with fibromyalgia and chronic fatigue. The ruling established that bad faith conduct by insurers can result in significant additional damages, a principle that has since been applied in mental health LTD cases.

Greig v. Desjardins Financial Security Life, 2019 BCSC 1758

In this British Columbia Supreme Court decision, the court found that Desjardins had mishandled the plaintiff’s LTD claim, causing serious financial hardship and mental distress over a 17 month period when benefits were wrongfully terminated. The court awarded $50,000 in aggravated damages and $200,000 in punitive damages, reinforcing that insurers and plan administrators can be held accountable when they fail their duty of good faith.

Past case outcomes do not guarantee future results. Each case is unique and assessed on its own facts. Court decisions referenced above are publicly available through CanLII.

Insurance companies often deny mental health LTD claims by arguing the medical evidence is not strong enough. Because conditions like depression, anxiety, and PTSD cannot be measured with X rays or blood tests, insurers may rely on their own medical teams to dispute your symptoms. The right legal support can change the outcome.

If your long term disability claim for mental health was denied, delayed, or cut off, MacGillivray Disability Law can help. We have helped clients across Canada secure the benefits they are owed.