What To Do When Your LTD Benefits Are Suddenly Cut Off in New Brunswick
Oct 13, 2026
6 min read
Long-Term Disability
New Brunswick
Our Practice Areas
Key Takeaways
- The most common reason LTD benefits are cut off is the own occupation to any occupation switch at 24 months.
- Insurers may rely on paper reviews or their own hired doctors instead of your treating physicians.
- Missing an IME or failing to provide requested records gives the insurer an easy reason to suspend benefits.
- Courts in New Brunswick hold that insurers must act in good faith and cannot cherry-pick medical evidence.
- Internal appeals are reviewed by the same company that cut you off. Legal action through the Court of King's Bench is often more effective.
- New Brunswick's Limitation of Actions Act sets a two-year limitation period that may start from the date of termination.
You have been relying on your long-term disability benefits to pay the rent, cover groceries, and keep things together while you deal with a serious health condition. Then one day, a letter arrives from the insurance company. Your benefits are being terminated. Just like that. No warning. No conversation. If this has happened to you in New Brunswick, you are not alone, and you are not without options.
Why LTD Benefits Get Cut Off in New Brunswick
Insurance companies do not terminate benefits at random, but their reasons are not always as solid as they make them sound. Here are the most common triggers we see from clients across New Brunswick.
The Own-Occupation to Any-Occupation Switch
This is the single biggest reason people lose their LTD benefits, and most policyholders do not see it coming. Most LTD policies define disability in two phases. For the first 24 months, you qualify if you cannot perform the duties of your own occupation, the specific job you were doing before you got sick or hurt.
After 24 months, the definition changes. Now you must prove that you cannot perform the duties of any occupation for which you are reasonably suited by education, training, or experience. This is a much harder test. The insurance company may decide that even though you cannot go back to your old job, you could theoretically work in some other capacity.
That "theoretical" job might pay far less, might not exist in Moncton or Fredericton or wherever you live, and might not account for your real-world limitations. But the insurer uses it as grounds to cut you off. If you are approaching the two-year mark on your disability claim, this is something to prepare for.
The Insurer Says You Can Work
Sometimes the insurance company will rely on a paper review of your medical file, done by a doctor who has never examined you, to conclude that you are able to work. Other times, they will send you for an independent medical exam and use that doctor's opinion to justify termination.
These opinions often conflict with what your own treating physicians say. Your family doctor in Saint John, your specialist at the Moncton Hospital, the people who actually know your condition, may firmly believe you cannot work. But the insurer relies on their own hired expert instead.
Missed IME or Non-Compliance
If the insurance company asks you to attend a medical examination or provide updated medical records and you miss the appointment or fail to respond, they may use that as a reason to suspend or terminate benefits. Always respond to these requests, even if you disagree with them. Ignoring them gives the insurer an easy excuse.
Your Rights When Benefits Are Cut Off
Being cut off from LTD benefits does not mean the insurer is right. Courts in New Brunswick and across Canada have consistently held that insurance companies must act in good faith when assessing disability claims. They cannot cherry-pick medical evidence, ignore your treating doctors, or apply unreasonable interpretations of policy terms.
Courts also interpret ambiguous terms in LTD policies in favour of the insured person. If the policy language is unclear about what "any occupation" means or how disability is defined, you get the benefit of the doubt, not the insurance company.
Understanding the common reasons insurers deny LTD claims can help you recognize whether your termination was legitimate or whether the insurer overstepped.
Internal Appeal vs. Going to Court
Most LTD policies have an internal appeal process. You can submit additional medical evidence and ask the insurer to reconsider their decision. Sometimes this works, especially if you have strong new medical documentation that addresses the insurer's specific concerns.
But here is the reality: internal appeals are reviewed by the same company that cut you off. The deck is not exactly stacked in your favour. Many people go through the appeal process and get denied again.
If the internal appeal fails, or if you want to skip it and go straight to legal action, you can sue the insurance company for breach of contract. In New Brunswick, these lawsuits are typically filed in the Court of King's Bench. The court reviews the medical evidence independently and decides whether you meet the policy definition of disability. Courts are not bound by the insurer's decision.
If you have already been denied once, you can learn more about what to do when your LTD claim is denied.
Gathering the Right Medical Evidence
Whether you are appealing internally or preparing for litigation, the strength of your medical evidence will make or break your case. Here is what you should focus on:
- Updated reports from your treating physicians: Ask your family doctor and any specialists to provide detailed, current reports about your condition, your limitations, and why you cannot work.
- Functional capacity evaluations: These assessments, done by occupational therapists, measure what you can and cannot physically do. They provide objective evidence that is hard for insurers to dismiss.
- Psychological or psychiatric assessments: If your disability involves mental health conditions like depression, anxiety, or PTSD, a report from a psychologist or psychiatrist carries significant weight.
- Treatment records: Keep records of every appointment, every medication, every therapy session. Consistency of treatment shows the court that your condition is real and ongoing.
Time Limits in New Brunswick
Under New Brunswick's Limitation of Actions Act, the general limitation period for starting a lawsuit is two years. For LTD claims, this clock may start ticking from the date your benefits were terminated, or it could be calculated differently depending on the specifics of your policy and the circumstances of your case.
Do not wait too long. Two years sounds like plenty of time, but building a strong case takes months. If you are getting close to the deadline, speak with a lawyer immediately to protect your right to take legal action.
LTD and Other Benefits You May Be Entitled To
When your LTD benefits are cut off, it can feel like everything has been pulled out from under you. But there may be other benefits available. If your disability started with a workplace injury, you may have a claim through WorkSafeNB. If you are unable to work at all, you may qualify for CPP Disability Benefits through the federal government. These do not replace your LTD, but they can provide some income while you fight the termination.
If your disability arose from a motor vehicle accident, you may also have Section B benefits available under your auto insurance.
How CLG Handles LTD Cases in New Brunswick
At CLG Injury Law, we see LTD terminations regularly from clients across New Brunswick. Insurance companies send out these letters knowing that many people will simply accept the decision and move on. Our job is to push back.
We review your policy, your medical records, and the insurer's reasons for cutting you off. We work with your doctors to build the strongest possible case. And if the insurer will not reinstate your benefits, we take them to court.
CLG Injury Law has offices in Moncton, Saint John, and Fredericton. We offer free case reviews for LTD claims. If your long-term disability benefits have been cut off, reach out. You do not have to face the insurance company alone.
You have been relying on your long-term disability benefits to pay the rent, cover groceries, and keep things together while you deal with a serious health condition. Then one day, a letter arrives from the insurance company. Your benefits are being terminated. Just like that. No warning. No conversation. If this has happened to you in New Brunswick, you are not alone, and you are not without options.
Why LTD Benefits Get Cut Off in New Brunswick
Insurance companies do not terminate benefits at random, but their reasons are not always as solid as they make them sound. Here are the most common triggers we see from clients across New Brunswick.
The Own-Occupation to Any-Occupation Switch
This is the single biggest reason people lose their LTD benefits, and most policyholders do not see it coming. Most LTD policies define disability in two phases. For the first 24 months, you qualify if you cannot perform the duties of your own occupation, the specific job you were doing before you got sick or hurt.
After 24 months, the definition changes. Now you must prove that you cannot perform the duties of any occupation for which you are reasonably suited by education, training, or experience. This is a much harder test. The insurance company may decide that even though you cannot go back to your old job, you could theoretically work in some other capacity.
That "theoretical" job might pay far less, might not exist in Moncton or Fredericton or wherever you live, and might not account for your real-world limitations. But the insurer uses it as grounds to cut you off. If you are approaching the two-year mark on your disability claim, this is something to prepare for.
The Insurer Says You Can Work
Sometimes the insurance company will rely on a paper review of your medical file, done by a doctor who has never examined you, to conclude that you are able to work. Other times, they will send you for an independent medical exam and use that doctor's opinion to justify termination.
These opinions often conflict with what your own treating physicians say. Your family doctor in Saint John, your specialist at the Moncton Hospital, the people who actually know your condition, may firmly believe you cannot work. But the insurer relies on their own hired expert instead.
Missed IME or Non-Compliance
If the insurance company asks you to attend a medical examination or provide updated medical records and you miss the appointment or fail to respond, they may use that as a reason to suspend or terminate benefits. Always respond to these requests, even if you disagree with them. Ignoring them gives the insurer an easy excuse.
Your Rights When Benefits Are Cut Off
Being cut off from LTD benefits does not mean the insurer is right. Courts in New Brunswick and across Canada have consistently held that insurance companies must act in good faith when assessing disability claims. They cannot cherry-pick medical evidence, ignore your treating doctors, or apply unreasonable interpretations of policy terms.
Courts also interpret ambiguous terms in LTD policies in favour of the insured person. If the policy language is unclear about what "any occupation" means or how disability is defined, you get the benefit of the doubt, not the insurance company.
Understanding the common reasons insurers deny LTD claims can help you recognize whether your termination was legitimate or whether the insurer overstepped.
Internal Appeal vs. Going to Court
Most LTD policies have an internal appeal process. You can submit additional medical evidence and ask the insurer to reconsider their decision. Sometimes this works, especially if you have strong new medical documentation that addresses the insurer's specific concerns.
But here is the reality: internal appeals are reviewed by the same company that cut you off. The deck is not exactly stacked in your favour. Many people go through the appeal process and get denied again.
If the internal appeal fails, or if you want to skip it and go straight to legal action, you can sue the insurance company for breach of contract. In New Brunswick, these lawsuits are typically filed in the Court of King's Bench. The court reviews the medical evidence independently and decides whether you meet the policy definition of disability. Courts are not bound by the insurer's decision.
If you have already been denied once, you can learn more about what to do when your LTD claim is denied.
Gathering the Right Medical Evidence
Whether you are appealing internally or preparing for litigation, the strength of your medical evidence will make or break your case. Here is what you should focus on:
- Updated reports from your treating physicians: Ask your family doctor and any specialists to provide detailed, current reports about your condition, your limitations, and why you cannot work.
- Functional capacity evaluations: These assessments, done by occupational therapists, measure what you can and cannot physically do. They provide objective evidence that is hard for insurers to dismiss.
- Psychological or psychiatric assessments: If your disability involves mental health conditions like depression, anxiety, or PTSD, a report from a psychologist or psychiatrist carries significant weight.
- Treatment records: Keep records of every appointment, every medication, every therapy session. Consistency of treatment shows the court that your condition is real and ongoing.
Time Limits in New Brunswick
Under New Brunswick's Limitation of Actions Act, the general limitation period for starting a lawsuit is two years. For LTD claims, this clock may start ticking from the date your benefits were terminated, or it could be calculated differently depending on the specifics of your policy and the circumstances of your case.
Do not wait too long. Two years sounds like plenty of time, but building a strong case takes months. If you are getting close to the deadline, speak with a lawyer immediately to protect your right to take legal action.
LTD and Other Benefits You May Be Entitled To
When your LTD benefits are cut off, it can feel like everything has been pulled out from under you. But there may be other benefits available. If your disability started with a workplace injury, you may have a claim through WorkSafeNB. If you are unable to work at all, you may qualify for CPP Disability Benefits through the federal government. These do not replace your LTD, but they can provide some income while you fight the termination.
If your disability arose from a motor vehicle accident, you may also have Section B benefits available under your auto insurance.
How CLG Handles LTD Cases in New Brunswick
At CLG Injury Law, we see LTD terminations regularly from clients across New Brunswick. Insurance companies send out these letters knowing that many people will simply accept the decision and move on. Our job is to push back.
We review your policy, your medical records, and the insurer's reasons for cutting you off. We work with your doctors to build the strongest possible case. And if the insurer will not reinstate your benefits, we take them to court.
CLG Injury Law has offices in Moncton, Saint John, and Fredericton. We offer free case reviews for LTD claims. If your long-term disability benefits have been cut off, reach out. You do not have to face the insurance company alone.
People Also Ask
Why were my LTD benefits suddenly cut off in New Brunswick?
Can I appeal an LTD termination in New Brunswick?
How long do I have to sue after my LTD is terminated in New Brunswick?
What medical evidence do I need to challenge an LTD termination?
Do I have to attend an independent medical exam requested by my insurer in NB?
