If you’re receiving long-term disability benefits for depression, anxiety, PTSD, bipolar disorder, or another mental health condition, you may be facing a deadline you didn’t know existed. Most employer-provided LTD policies cap long-term disability mental health benefits at 24 months—even if you’re still completely unable to work. Understanding this limitation, and knowing what’s being done to change it, could make a critical difference in your financial future.
The 24-Month Mental Health Limitation Explained
Here’s how it typically works: You become disabled due to a mental health condition and file a claim with your employer’s long-term disability insurance carrier. The insurer approves your claim and begins paying benefits—usually 50-60% of your pre-disability salary. For two years, the checks arrive as expected.
Then, at the 24-month mark, everything changes. The insurer sends a letter stating that your benefits are being terminated because you’ve reached the maximum payment period for mental health conditions.
It doesn’t matter that you’re still unable to work. It doesn’t matter that your doctors say you remain disabled. The policy simply stops paying.
Meanwhile, someone disabled by a physical condition—chronic back pain, heart disease, cancer, multiple sclerosis—can continue receiving benefits until age 65, 67, or even longer depending on the policy terms. The same insurer, the same employer, the same premium dollars. But a completely different outcome based solely on the cause of the disability.
Why Does This Disparity Exist?
The 24-month limitation for mental health conditions has been standard in the LTD insurance industry for decades. Insurers have historically argued that mental health disabilities are harder to verify objectively, more likely to improve with treatment, and pose a greater risk of prolonged claims.
These justifications don’t hold up under modern clinical understanding. Mental health conditions can be just as disabling, just as permanent, and just as well-documented as physical conditions. Someone with severe treatment-resistant depression may be no more capable of working than someone with a degenerative spinal condition. Yet the insurance industry has continued to treat these claims differently.
The result is that people with legitimate, debilitating mental health conditions are cut off from benefits while they’re still unable to support themselves. Many face financial devastation—losing their homes, depleting their savings, or becoming dependent on family members—simply because their disability originated in their brain rather than their back.
Does Your Policy Have This Limitation?
Nearly all group long-term disability mental health policies include some version of the 24-month cap. However, the specific language varies. Some policies use the term “mental illness limitation” or “mental and nervous condition limitation.” Others may include substance use disorders in the same category.
To find out if your policy has this restriction, look for a section in your plan documents titled “Limitations” or “Limited Conditions.” You may also see a list of conditions subject to a reduced benefit period. Common language includes phrases like “benefits for disabilities caused by mental illness are limited to 24 months” or “the maximum benefit period for mental or nervous disorders is two years.”
If you’re having trouble locating this information, your HR department should be able to provide a Summary Plan Description (SPD) that outlines your coverage. You can also request a full copy of the policy from your insurer.
Knowing what your policy says now—before you hit the 24-month mark—gives you time to prepare and explore your options.
New Legislation Could Change Everything
There’s reason for hope. In June 2025, Congress introduced H.R. 3758, the Workers’ Disability Benefits Parity Act of 2025. This bill directly addresses the disparity in how LTD plans treat mental health and physical health conditions.
If passed, the legislation would prohibit disability benefit plans from imposing limitations on mental health or substance use disorder claims that are more restrictive than those applied to physical health conditions. In plain terms: if your policy pays physical disability claims until retirement age, it would have to do the same for mental health claims.
The bill also includes enforcement teeth. It would give the Department of Labor authority to impose civil monetary penalties on insurers that violate parity requirements—a significant deterrent against noncompliance.
H.R. 3758 builds on findings from a 2023 report by the ERISA Advisory Council, a group that advises the Secretary of Labor on employee benefit issues. That report examined the mental health disparity in long-term disability benefits and concluded that duration limits for mental health conditions are “discriminatory” and “unsupported by current clinical standards.”
The bill was introduced by Representative Mark DeSaulnier of California and Representative Bobby Scott of Virginia. It’s currently in the House Committee on Education and Workforce.
What the Insurance Industry Is Saying
Reaction from the insurance industry has been mixed. Sun Life, one of the major LTD carriers, has publicly expressed support for the bill, citing the need for equitable treatment of behavioral health conditions.
Industry groups like the American Council of Life Insurers have raised concerns about increased costs and the potential for adverse selection—the idea that parity requirements could attract higher-risk claimants to certain plans.
However, actuarial data presented to the ERISA Advisory Council suggests these fears may be overstated. Only a small percentage of LTD claims are actually terminated due to the 24-month mental health limit. And importantly, all major LTD carriers already offer parity coverage as an option. The limitation isn’t a matter of capability—it’s a matter of what employers choose to purchase and what insurers choose to make the default.
The Workers’ Disability Benefits Parity Act would simply make equitable treatment the standard rather than the exception.
What This Means for You Right Now
While the legislation works its way through Congress, current policy limitations remain in effect. If you’re receiving long-term disability mental health benefits, or considering filing a claim for a mental health condition, here’s what you should know:
Check your policy now. Don’t wait until you’re approaching the 24-month mark to find out what your policy says. Understanding your coverage gives you time to plan.
Document everything. Strong medical documentation matters even more for mental health claims. Make sure your treatment providers are documenting not just your diagnosis, but your functional limitations—how your condition affects your ability to concentrate, interact with others, maintain a schedule, handle stress, and perform work-related tasks.
Keep treating. Gaps in treatment can be used against you. Consistent care with mental health professionals shows that your condition is ongoing and being actively managed.
Understand the definition change. Many policies shift from “own occupation” to “any occupation” at the 24-month mark—separate from the mental health limitation. This means the insurer may evaluate whether you can do any job, not just your previous job. Be prepared for increased scrutiny at this point.
Know your appeal rights. If your benefits are terminated due to a mental health limitation, you have the right to appeal. ERISA requires insurers to provide a full and fair review of your claim. An experienced attorney can help you build the strongest possible case.
Why Fighting Back Matters
Insurance companies count on claimants accepting termination letters without question. Many people don’t realize they have options. They assume that if the policy says 24 months, there’s nothing to be done.
That’s not always true. In some cases, mental health conditions have physical components or causes that may not be subject to the limitation. In other cases, the insurer may have misapplied the policy terms or failed to consider all relevant evidence. Every situation is different, and a careful review of your claim file can reveal opportunities for appeal.
Even when the limitation is properly applied under current policy language, pushing back sends a message. The more claimants challenge these restrictions, the more pressure builds on insurers and legislators to change them.
Long-Term Disability Mental Health Claims Deserve Fair Treatment
No one chooses to become disabled. And no one’s suffering should be dismissed simply because their condition affects their mind rather than their body. The 24-month mental health limitation is an outdated practice that causes real harm to real people—people who paid their premiums, followed the rules, and deserve the benefits they were promised.
At Tucker Disability Law, we’ve helped countless clients fight back against unfair claim denials and terminations. We understand the unique challenges that come with long-term disability mental health claims, and we know how to build cases that get results.
If you’re approaching the 24-month mark, have already received a termination letter, or simply want to understand your rights, we’re here to help. Contact us today for a free consultation. We never give up—and we won’t stop fighting until you get the benefits you deserve.
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