When depression, anxiety, burnout or another mental health condition makes it impossible to work, short-term disability (STD) can keep some income coming in while you recover. But claims can feel confusing, especially when you're already exhausted. This guide explains how STD works, how it fits with EI and long-term disability, the steps to make a claim, and what to do if your insurer says no.
This is general information, not legal or insurance advice. Every plan is different. Your plan booklet and your insurer have the final word.
What short-term disability is
Short-term disability insurance replaces part of your income when you can't work because of illness or injury. Mental health conditions are illnesses, so they can qualify, just like a physical condition.
The Financial Consumer Agency of Canada (FCAC) says:
STD typically pays benefits for up to 6 months while you're sick or injured.
Disability insurance in general replaces between 60% and 85% of your income, up to a maximum.
If your employer has an STD plan, you must claim through that plan.
Many people get STD as part of a group benefits plan at work. Some employers offer paid sick leave instead of, or before, STD.
How STD fits with other benefits
Think of it as a chain:
Sick days or paid sick leave from your employer, if you have them
Short-term disability through your workplace plan
EI sickness benefits from the federal government. FCAC says you may qualify if you don't have STD coverage or sick leave. Service Canada says EI sickness can pay for up to 26 weeks.
Long-term disability (LTD), which FCAC says generally begins when STD, sick leave or EI sickness ends
FCAC also mentions the Canada Pension Plan disability benefit for people who have paid into CPP and can't work regularly at any job because of a disability.
Offsets. FCAC says benefits from one plan may reduce, or "offset," what you get from another. Many LTD plans reduce your benefit when you get other disability income. Ask your insurer how your plan handles this.
Your job is protected, separately
STD is about income. Job protection is a separate question. Ontario's Employment Standards Act includes unpaid, job-protected sick leave. It also includes a long-term illness leave for a serious medical condition, of up to 27 weeks in a 52-week period. Check the Ontario rules or ask HR how they apply to you.
Step by step: making a claim
Each insurer has its own process, but most claims follow these steps.
Step 1: Read your plan booklet. Look for the definition of disability, any waiting period before benefits start, how much the plan pays and how long it lasts. FCAC notes that insurers define disability differently, even between plans from the same company.
Step 2: Tell your employer you need time off for medical reasons. Ask HR or your benefits contact what information they need from you. They can give you the claim package or tell you how to start online.
Step 3: See a health care provider. STD claims usually need medical information from a treating provider. Book early. Explain your symptoms and, most importantly, how they affect your ability to do your job.
Step 4: Complete your part of the forms. STD claims usually include an employee statement, an employer statement and an attending provider statement. Fill in your part fully and honestly.
Step 5: Send everything on time. Plans have deadlines. Check yours, and keep copies of everything you send, with the date.
Step 6: Stay in touch. A case manager may call you, ask for updates or request more information. Answer promptly. Some plans also require you to take part in a rehabilitation or return-to-work program, which FCAC notes as a common feature.
Making your claim clear
Mental health claims are sometimes denied because the forms don't show how the condition affects work. A diagnosis alone usually isn't enough. Before your appointment, write down:
Symptoms you notice, such as poor sleep, panic attacks, low mood or trouble focusing
How they affect your job tasks, such as missing deadlines, being unable to concentrate in meetings or not being able to drive safely
How often this happens, and for how long
Treatment you're getting, such as therapy, medication or both
This helps your provider describe your limits in a way the insurer can understand. It also helps you. On a foggy day, it's easy to forget the details that matter most, so having notes on paper or on your phone takes the pressure off.
Will my benefits be taxed?
It depends on who pays the premiums. FCAC says that if you pay the whole premium yourself, your disability benefits are generally tax-free. If your employer pays all or part of the premium, your benefits are subject to income tax. Your HR team or plan booklet can tell you which applies.
Going back to work
STD is meant to be short term. Many people return gradually, with modified hours or duties at first. If your symptoms still keep you from working near the end of STD, ask about long-term disability early. FCAC says some LTD plans pay for up to 2 years if you can't do your own job, and after that, only if you can't do any job. The details depend on your plan.
If your claim is denied
Don't panic, and don't ignore the letter. Most denials can be challenged.
Read the letter carefully. Find the reason and any deadline to appeal.
Ask for your file. Request the information the insurer used, including medical reports.
Fill the gaps. If the insurer says there wasn't enough medical evidence, ask your provider for an updated report that speaks to the reason given.
Use the insurer's appeal or complaint process. Every insurer has an internal complaint process.
Get a final position letter. If you're still not satisfied, ask the insurer for its final written position.
Contact the OmbudService for Life and Health Insurance (OLHI). OLHI is an independent complaint service for life and health insurance. Once you have a final position letter, it can review your complaint. Its goal is to finish a review within 120 days. OLHI can't review some plans that an insurer only administers for an employer, called Administrative Services Only (ASO) plans.
If you're in a union, your representative may also be able to help.
Support while you're off work
Time off can bring relief, but it can also bring guilt, worry about money and fear about going back. Therapy can help you recover, rebuild routines and plan a return to work that lasts. Learn more about our support for depression, our secure online counselling and how insurance works with our services. Our clinicians can provide supporting documentation where appropriate, as part of your care with us.
You can see us in Kitchener, Waterloo, Cambridge or Ottawa, or by secure video from anywhere in Ontario.
Cost, billing and your first step
Sessions with our therapists range from $130 to $200, depending on the clinician.
We accept Health Spending Accounts (HSAs).
We can direct bill many insurers. Your extended health plan may cover therapy, depending on your plan, so check with your insurer before you start.
Book a free 15-minute consultation with our admin team. Let them know you're on leave or thinking about it, and they'll help you find a good fit.
If you're in crisis: if you or someone you love is in immediate danger, call 911. If you're thinking about suicide, call or text 9-8-8 any time, day or night.
Last reviewed: October 2026
Sources
Disability insurance, Financial Consumer Agency of Canada
Our process, OmbudService for Life and Health Insurance (OLHI)
Your guide to the Employment Standards Act: long-term illness leave, Government of Ontario
EI sickness benefits, Government of Canada