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This article explains how EI sickness benefits from Service Canada differ from long term disability insurance through an employer or private policy, and how they can work together when you are unable to work for medical reasons. You will learn what each program pays, how long benefits last, what happens when EI sickness benefits run out, and when to speak with a disability lawyer about a long term disability claim.
What Are EI Sickness Benefits?
EI sickness benefits are short‑term Employment Insurance payments from the federal government for people who cannot work for medical reasons such as illness, injury, quarantine, or another medical condition that prevents them from working.
You must have enough insurable hours, have had recent earnings, and get a medical certificate showing you are unable to work and for roughly how long.
Key points about EI sickness benefits:
Run through Service Canada, not your insurance company
Provide up to 26 weeks of sickness benefits
Pay 55% of your average insurable weekly earnings, up to a weekly maximum (for 2026, $729).
Require a medical certificate from an approved health‑care professional.
Because EI is based on your recent average insurable weekly earnings, people with low or interrupted work histories may receive less than those with steady full‑time income.
What Is Long Term Disability (LTD) Insurance?
Long term disability insurance is a private or employer‑based term disability plan that replaces a portion of your income when you are unable to work for an extended period due to a serious medical condition. It is usually part of a group benefits package at work or purchased as an individual policy.
Typical features of long term disability insurance:
Pays about 60–70% of your pre‑disability income as disability benefits.
Has an elimination or waiting period, often 90–180 days, during which you may use sick leave, sickness benefits, or EI.
Requires proof that you are unable to work in your own job at first, then often in any suitable job after a “change of definition” around 24 months.
In many policies, LTD is meant to “top up” other income such as CPP‑D, ODSP, or EI sickness benefits.
Because LTD is contractual, the application process and appeal rules are set by the policy wording and the insurance company’s internal procedures.
EI Sickness Benefits vs LTD — Key Differences
EI and long term disability both provide financial assistance when you are unable to work, but they operate very differently.
EI sickness benefits are short‑term government sickness benefits based on your average insurable weekly earnings, while long term disability insurance is a private or employer plan that can pay income replacement for years, often to age 65, if you meet the policy’s disability test.
EI is usually the first step; LTD is the longer‑term safety net if your prolonged disability continues.
EI vs LTD: Key features
Feature | EI sickness benefits | Long term disability insurance |
Provider | Employer group or private insurance company | |
Purpose | Short‑term sickness benefits while you can’t work for medical reasons | Ongoing income when you have a severe and prolonged disability that keeps you from working long‑term |
Duration | Up to 26 weeks of EI sickness benefits | Often to age 65, or for a fixed benefit period, if you continue to meet the policy’s disability definition |
Amount | About 55% of average insurable weekly earnings, to a weekly max | Typically 60–70% of pre‑disability earnings (policy‑specific) |
Medical proof | Must get a medical certificate confirming you’re unable to work and for how long | Ongoing medical reports linking your medical condition to your inability to perform your occupation |
Tax treatment | Taxable or tax‑free depending on who paid premiums | |
Decision maker | EI agent at Service Canada | Claims adjuster at your insurance company |
Appeals | EI reconsideration and Social Security Tribunal | Internal appeals, then legal action with a disability lawyer if needed |
Can You Receive EI Sickness Benefits and LTD at the Same Time?
You can sometimes receive EI sickness benefits and long term disability at the same time, but most LTD policies treat EI as income and deduct it from your LTD payments, so you do not “double dip.” Some plans require you to apply for EI as a condition of your long term disability claim.
Details to keep in mind:
Many group LTD policies say your LTD will be reduced by EI, CPP‑D, workers’ compensation, or other disability benefits.
Practically, you may be approved for both, but your insurance company will subtract EI from what they owe, and may even seek repayment if EI is paid retroactively.
Some policies require you to prove you applied for EI and CPP‑D as part of the application process.
Because of these offsets, it is wise to track all approvals and keep copies of EI letters in case the insurer’s math is wrong.
What Happens When EI Sickness Benefits Run Out?
When EI sickness benefits run out, you must look to other income sources, such as long term disability, employer sick leave, CPP‑D, ODSP, or savings, because EI does not automatically convert to LTD or other disability benefits.
Common next steps after EI ends:
Transition to long term disability if your LTD waiting period has passed and your claim is approved.
Apply for CPP‑D if your condition is considered a severe and prolonged disability.
Consider provincial disability support such as ODSP if you live in Ontario and meet their tests.
If LTD is denied or delayed at the point your sickness benefits end, the income gap can be serious, which is often when people contact a disability lawyer.
When Should You Apply for LTD While Receiving EI?
You should usually start your long term disability application process while you are still on EI sickness benefits, not after they end, to avoid gaps in income and to meet policy deadlines.
Many plans encourage you to apply for EI long term disability coverage as soon as it looks like you will be off work beyond the LTD waiting period.
Practical timing tips:
Check your LTD booklet for the waiting period (often 90–180 days from when you stopped work for medical reasons).
Start gathering medical reports and get a medical certificate or specialist letter that clearly states why you are unable to work and for how long.
In many cases, the best strategy is to apply for EI and LTD at the same time
If you wait until after EI ends to apply for LTD, you risk missing notice deadlines in your policy or creating a gap where you have no income at all.
Common Mistakes When Transitioning from EI to LTD
People often make similar errors while moving from EI sickness benefits to long term disability coverage.
Frequent mistakes include:
Waiting until sickness benefits end to start the LTD application process, leading to missed deadlines or late claims.
Not asking their doctor to clearly connect their medical condition to specific work restrictions (for example, why they cannot safely do their real job).
Returning to work too soon for medical reasons, then crashing and jeopardizing both EI and LTD claims.
Quitting or accepting severance before understanding how that affects term disability coverage.
Appealing LTD denials on their own, without a disability lawyer, and re‑sending the same information the insurance company already rejected.
Avoiding these mistakes can make the shift from EI to LTD much smoother and protect your long‑term income.
How Insurance Companies Treat EI Benefits in LTD Claims
Most insurance company LTD policies treat EI sickness benefits as deductible income, so they lower your LTD payment by the amount of EI you receive, and they may insist that you apply for EI, CPP‑D, or other programs as a condition of your long term disability claim.
What this means in practice:
Your total monthly income may stay similar, but the mix changes: more from EI or CPP‑D, less from the insurer.
If EI or CPP‑D is approved late and back‑dated, your LTD insurer may claim an overpayment and ask you to repay part of your LTD.
Insurers often argue that these offsets are allowed under the contract, which is why many claimants have a disability lawyer review the wording.
Insurers do not get to use EI’s decision about your ability to work as the final word on your LTD case, but they will use the EI records as part of their file.
Which Option Is Right for You?
You usually do not choose between EI sickness benefits and long term disability; instead, you layer them, starting with EI or short‑term coverage and then moving to LTD if your prolonged disability continues.
The right mix depends on how long you will be unable to work, what benefits your employer offers, and how your LTD policy is written.
A simple framework:
If you expect to be off work for a few months, EI sickness benefits and any employer short‑term plan may be enough.
If your medical condition is serious or long‑lasting, you should treat LTD as your main income protection and plan for CPP‑D or ODSP as backup.
Whenever an insurance company denies or cuts off LTD even though you are still unable to work, it is usually time to call a disability lawyer.
Seek Legal Help From a Long Term Disability Lawyer
Dealing with EI, long term disability, and a serious medical condition at the same time can be overwhelming. A seasoned disability lawyer can explain how EI offsets work, challenge unfair LTD denials, and handle negotiations with the insurance company so you can focus on your health.
Share Lawyers and similar firms regularly assist Canadians when EI has ended, the application process for LTD is stalled, or an insurer claims you can return to work despite clear medical evidence that you are still unable to work. Reaching out early often gives you more options and reduces the risk of missed deadlines or gaps in income.
Contact Share Lawyers today and let our experience work for you. Our 40 years of experience can help you win your case against Canada Life, Desjardins, Manulife, RBC Insurance, Sun Life, and other insurance companies. Our legal team offers a free consultation and works on a contingency basis—there are no fees unless you win your case.
Practical Checklist: EI Sickness to LTD
Use this checklist if you may need both EI sickness benefits and long term disability coverage.
Before you stop work for medical reasons
Review your benefits booklet to confirm term disability coverage, waiting period, and any EI or CPP‑D requirements.
Talk to your doctor about your medical condition and whether you are unable to work safely in your current role.
Get a medical certificate that clearly ties your symptoms to your inability to work.
When applying for EI sickness benefits
Apply online through Service Canada as soon as you stop work for medical reasons.
Upload or submit your medical certificate promptly.
Keep copies of all EI letters about your sickness benefits, including benefit period start and end dates.
While on EI sickness benefits
Start your long term disability application process early—do not wait for EI to end.
Ask your doctor or specialist for detailed reports describing your functional limits and why you cannot work for medical reasons.
Avoid going back too soon or reducing your hours without understanding the impact on LTD and other disability benefits.
As EI sickness benefits run out
Confirm your expected last payment date.
Check the status of your LTD claim; if it is delayed or denied, contact a disability lawyer immediately.
Consider applying for CPP‑D if your condition looks like a severe and prolonged disability, and check provincial supports like ODSP if you live in Ontario.
If your LTD or other disability benefits are denied
Do not assume the insurance company is right; many valid claims are denied at first.
Keep all denial letters and medical reports organized.
Speak with a disability lawyer experienced in LTD cases to review your options before you appeal on your own.
FAQ: EI Sickness Benefits and Long Term Disability
1. Can I choose LTD instead of EI sickness benefits?
Not usually; EI and LTD are separate. Many LTD policies require you to apply for EI sickness benefits first, and then LTD either tops up or replaces EI once the waiting period ends.
2. Do EI sickness benefits affect my LTD amount?
Often, yes. Most LTD policies let the insurance company deduct EI and other disability benefits from what they pay you, so EI usually reduces your LTD payment but does not take away your overall entitlement.
3. What medical proof do I need for EI sickness benefits and LTD?
For EI you must get a medical certificate saying you are unable to work for medical reasons and indicating how long. For LTD, you need ongoing medical reports that link your medical condition to specific work limitations and show a prolonged disability that meets your policy’s definition.
4. What happens if EI sickness benefits run out before my LTD is approved?
You may face a gap in income, which is why it is important to start your LTD application process early and to contact a disability lawyer quickly if the insurance company delays or denies your claim.
5. Can I be denied LTD even if EI approved my sickness benefits?
Yes. EI and LTD use different rules and evidence standards, and LTD insurers often focus heavily on whether your medical records prove you are still unable to work in your own—or any—occupation. If this happens, legal advice can be crucial.
