Last updated: August 2026 | Reviewed by Nainesh Kotak, B.A. (Hons), LL.B.

Anxiety and Depression May Lead to Long-Term Disability

The Canadian Mental Health Association reports that approximately one in five Canadians will experience mental illness at some point in their lives, and virtually all Canadians are affected when it touches a family member, friend, or coworker. Despite how common mental illness is, many people remain unaware that a loved one is struggling, in part because of the stigma still attached to these conditions.

Depression and anxiety are two of the most common forms of mental illness, and both can be genuinely disabling.

The Effects of Depression and Anxiety

Depression can present through a wide range of mental and physical symptoms: diminished interest in everyday activities, feelings of worthlessness or guilt, sleep disturbances, difficulty concentrating or making decisions, low energy, restlessness, and in some cases, thoughts of suicide. For some people, these symptoms are severe enough to interfere with the ability to function at work, at school, and in relationships.

Anxiety often involves persistent, exaggerated fear of situations that may not warrant it, difficulty concentrating as a result of that fear, and behavioural changes aimed at avoiding triggers. Anxiety can arise from a medical condition, a traumatic event, medication side effects, or ongoing stress — including, increasingly, work-related stress. For some people, work-related anxiety leads to panic attacks and physical symptoms that make it difficult to function effectively on the job.

Both conditions can make everyday tasks — even getting out of bed — feel difficult, while more demanding situations can become overwhelming. The effects are often compounded in a high-pressure work environment.

Claims involving depression, anxiety, and other psychological conditions can be more complex than claims based on visible, objectively measurable injuries. According to Sun Life’s 2025 Designed for Health report, mental health conditions are now the single most common diagnosis behind LTD claims in Canada, representing almost 40% of all claims in 2024 — yet insurers typically scrutinize the medical evidence for psychological claims more closely than for conditions with clear diagnostic markers like imaging or lab results.

Applying for LTD Benefits Due to Depression or Anxiety

As with all long-term disability claims, your insurer will assess whether your condition prevents you from working at an acceptable level. Your claim generally needs medical evidence — from your family doctor, psychologist, psychiatrist, or another appropriate health care professional — documenting that your symptoms prevent you from performing the essential duties of your job.

Insurers will scrutinize your file for any inconsistency between your reported symptoms and your medical records, and will examine the type, duration, and consistency of your treatment. Medical evidence of your symptoms, diagnosis, and treatment is generally the most important part of your claim, which is why seeking professional help before applying is important. Your insurer will typically look at whether you’re seeing a mental health professional, whether you’re taking prescribed medication, and whether your treatment is appropriate for your condition. A claim can be denied if the insurer takes the position that your treatment was inadequate — even where that isn’t a fair reflection of your actual efforts to get better.

Personal documentation — journals, texts, or emails that reflect your struggle at the time — can also support a claim, though this evidence is secondary to medical documentation.

Insurers may also examine your broader circumstances. Collecting non-sickness unemployment benefits, for example, can imply you’re actively seeking work and therefore fit to work, which insurers may use against an LTD claim. Insurers commonly review publicly available social media activity as well, looking for anything that could be characterized as inconsistent with reported symptoms.

Depression, Anxiety, and the Own Occupation to Any Occupation Transition

If you’ve been receiving LTD benefits for depression or anxiety for close to two years, it’s also important to understand how your insurer’s definition of disability may change at that point. Many policies shift from asking whether you can perform your own job to whether you can perform any occupation you’re reasonably suited for — a standard that can be especially difficult to apply fairly to psychological conditions, since an insurer may argue that a claimant unable to return to a demanding role could still manage a quieter one, without properly accounting for how depression or anxiety actually affect concentration, reliability, and attendance.

Learn more about the own occupation to any occupation transition.

How a Disability Lawyer Can Help With a Depression or Anxiety LTD Claim

At Kotak Law, our review of a denied or terminated anxiety LTD claim may include:

whether your medical file includes proper psychiatric or psychological evidence, not just documentation from a family doctor
whether treatment gaps or inconsistencies in your care are being unfairly held against you
how workplace stressors specific to your job contributed to your condition and functional limitations
whether the insurer has properly accounted for effects on concentration, reliability, and attendance — not just mood
whether surveillance or social media was used against your claim, and whether it fairly reflects your actual limitations
the transition from the “own occupation” to “any occupation” definition, and how it applies to psychological conditions specifically
applicable limitation periods
whether a legal claim should be commenced

Frequently Asked Questions About Depression and Anxiety LTD Claims

Can I get LTD benefits for depression or anxiety without a physical diagnosis?
Yes. Mental health conditions are recognized as valid grounds for LTD claims. The challenge is often evidentiary — psychological conditions can’t be confirmed through imaging or lab tests the way some physical conditions can, so the quality and consistency of your treatment records matters more.

Will my insurer use my social media against me?
It’s common for insurers to review publicly available social media when assessing a mental health claim. A photo or post that looks inconsistent with your reported symptoms — even if it doesn’t tell the full story — can be used to question your credibility.

Does my condition have to be permanent to qualify for LTD?
No. LTD benefits are based on whether your condition currently prevents you from working, not on a permanent prognosis. Conditions can improve, worsen, or fluctuate over the life of a claim.

What happens to my claim after two years?
Many policies shift to a stricter “any occupation” standard around the two-year mark. Read more about how this transition works.

Does Kotak Law handle mental health LTD claims across Canada?
Kotak Law represents clients in long-term disability matters throughout Canada. Nainesh Kotak has practised law in Ontario since 1994 and is also called to the bars of Alberta and British Columbia, with the firm continuing to expand its bar admissions across Canada.

Related Long-Term Disability Resources

Speak With a Disability Lawyer About Your Claim

Long-term disability claims involving depression or anxiety can involve counterintuitive challenges that are frustrating for claimants who don’t deserve to have their integrity questioned. If your insurer has denied your claim or unfairly terminated your benefits, Kotak Law can review your file and explain your options.

Free consultation. Disability cases are handled on a contingency-fee basis.

Speak With a Disability Lawyer →

About Nainesh Kotak and Rajiv Haté

Nainesh Kotak, B.A. (Hons), LL.B., has practised law in Ontario since 1994 and is also called to the bars of Alberta and British Columbia. Nainesh and his colleague Rajiv Haté are both recognized by the Canadian Lexpert Directory as leading lawyers in long-term disability law.

Nainesh is a Past Chair of the Long-Term Disability Section of the Ontario Trial Lawyers Association (OTLA) and currently serves as Vice President of OTLA.

Together with the firm’s disability lawyers — including Kaity Yang and Avinaash (Avi) Laljie — Nainesh and Rajiv represent clients throughout Canada in long-term and short-term disability disputes involving major Canadian insurance companies.

Depression and Anxiety Disability Claims