Receiving a letter from your insurance company stating your disability benefits are being terminated is a deeply distressing experience. For many Canadians, these benefits are the primary—or only—source of income. When they stop suddenly, the financial, emotional, and medical consequences can feel overwhelming.
If your long-term disability (LTD) or short-term disability (STD) benefits have been cut off, it is vital to understand why this happens and what steps you can take immediately to protect yourself and your family. This isn’t just a notice; it’s a critical moment that requires a swift, strategic response.
Why Insurance Companies Cut Off Disability Benefits
A termination letter does not mean you are no longer disabled. In many situations, benefits are cut off for strategic or technical reasons, not because of a genuine improvement in your medical condition. Insurance companies are businesses, and denying or terminating claims is a way they protect their bottom line.
Common reasons insurers give for a disability benefits cut off include:
- Claiming you can return to work in any occupation, not just your own.
- Alleging your condition has improved based on reviews by their own paid doctors who have never met you.
- Using surveillance footage that is often taken out of context to dispute your limitations.
- Arguing your condition is “subjective” and lacks “objective evidence,” a common tactic for conditions like chronic pain, fibromyalgia, migraines, or mental health disorders.
- Stating you failed to provide sufficient medical documentation.
- Citing missed deadlines or minor paperwork issues.
Insurers often rely on selective evidence while completely ignoring the detailed opinions of your own treating doctors. This is a key reason why you need an experienced disability lawyer to review your case.
The “Own Occupation” vs. “Any Occupation” Switch
A critical point for many LTD claims is the change in the definition of disability. Most policies have a two-part definition:
- Own Occupation: For the first 24 months, you are considered disabled if you are unable to perform the essential duties of your specific job.
- Any Occupation: After 24 months, the definition often shifts. To continue receiving benefits, you must prove you are unable to perform any job for which you are reasonably suited by education, training, or experience.
This transition is one of the most common moments for a disability benefits cut off. The insurer may argue you can work a different, less demanding job, even if your medical condition has not changed or has worsened.
What to Do Immediately After Your Benefits Are Terminated
Receiving a termination notice can cause panic, but your first steps are crucial. Acting impulsively can harm your chances of a successful insurance termination appeal.
- Do Not Assume the Decision Is Final
Termination letters are written to sound intimidating and definitive. The reality is that many benefit cut-offs are successfully challenged and overturned with the right legal strategy. This is not the end of the road.
- Do Not Rush Back to Work
Your first instinct might be to find work immediately to cover your expenses. However, returning to work prematurely can:
- Worsen your health condition, leading to a significant setback.
- Be used by the insurer as evidence that you are, in fact, capable of working.
- Seriously undermine your legal position and ability to fight the termination.
- Preserve All Documentation
Gather and keep everything related to your claim. This evidence is the foundation of your case.
- The termination letter and the envelope it came in.
- Your complete insurance policy document.
- All medical records, test results, and reports from your doctors.
- Any emails, letters, or notes from conversations with the insurance company.
The Critical Importance of Time: Do Not Wait to Act
This is the most urgent takeaway: Disability claims are governed by strict limitation periods.
Waiting too long after receiving a termination notice can permanently extinguish your right to sue the insurance company. Once that legal deadline passes, your claim may be barred forever, no matter how strong your medical evidence is. The clock started ticking the moment your benefits were denied or terminated. Delaying your decision to seek legal help is the biggest mistake you can make. Every day that passes is a day the insurance company gains an advantage.
Internal Appeals vs. Legal Action: Know Your Rights
The insurer will invite you to submit an “internal appeal.” While this may seem like a reasonable first step, it is a process controlled entirely by the insurance company.
- The same company that denied you is the one reviewing the appeal.
- There is no independent decision-maker.
- Strict deadlines can prejudice your right to a lawsuit later.
In many cases, hiring a disability lawyer to initiate legal action immediately provides far greater leverage. It forces the insurer to take your claim seriously and often leads to a faster and more favourable outcome, such as a reinstatement of benefits or a lump-sum settlement.
A Partner in Your Corner When It Matters Most
We understand the fear and uncertainty that follow a disability benefits cut off. It feels like the ground has been pulled out from under you. You are not just fighting a faceless corporation; you are fighting for your home, your health, and your family’s future. You do not have to do it alone.
At Kotak Law, we only represent individuals—never insurance companies. We have seen every tactic and strategy insurers use to deny legitimate claims. Our focus is on protecting you and restoring the financial security you deserve. A termination letter is not a medical opinion; it’s a business decision. Let us handle the fight so you can focus on your health.
If your benefits were unfairly terminated, contact Kotak Law today for a free consultation. There is no fee unless we win your case.
