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Long-Term Disability Benefits

By: Jordan Thompson, Associate Lawyer

Long-term disability (“LTD”) benefits are insurance benefits that cover a loss of income due to disability from work. They are usually provided through your benefits package at work. The benefits are based upon your income and typically cover a percentage of pre-disability income. This percentage varies depending on the LTD policy.

LTD insurers have a ‘duty of good faith’ to the insured. However, may people who live with subjective chronic conditions find that their LTD benefits can be terminated or denied even if their family doctor and specialist they have seen support the disability.

There is no standard LTD policy. Unlike automobile insurance where there is once policy (SPF No. 1) that covers all vehicles insured in New Brunswick, LTD policies can vary in the percentage of pre-disability income that is paid for benefits and deductions allowed from payments of LTD benefits.


Generally, however, LTD benefits are payable for the first two years following the date of disability when one is disabled from the essential or normal duties of their own occupation. After two years, benefits are payable for if one is disabled from any occupation the disabled person has training, education, or experience for. Many claims arise at the two-year mark (the “change of definition date”). If this has happened to you, please give us a call for a free consultation.


If you have been denied LTD benefits and your doctor supports your ongoing disability, please call us for a free consultation. Many LTD insurers state that they cannot pay benefits because there is “no objective evidence” of a disability (e.g.: evidence that can be seen on an x-ray or MRI). The majority of the times the wording of an LTD policy does not require “objective” evidence and Courts have held that chronic subjective pain can disable a person.


The Mike Murphy Accident Team is happy to set up an appointment or consultation to review your case.


If you believe you have a claim and would like to set up a free consultation, please give us a call.



DISCLAIMER: The publications on this website are intended to provide information of a general nature and not legal advice. The information contained in this publication is current to the date of the publication and may be subject to change following the publication date.

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