We often discuss wrongful long-term disability insurance claim denials in this blog. Many of our readers might wonder why it is that disability insurance companies deny claims so often. The answer to this is complex, as there are a number of reasons claims might be denied, but a recent Huffington Post column discusses a few of the issues.
One issue cited in the column is that disability insurance companies are not regulated in the same manner as health insurance companies. For example, the Patient Protection and Affordable Care Act, also known as health care reform, will not have an impact on disability insurance. Additionally, disability insurers may have different requirements than the Social Security Administration and even your employer when it comes to defining a disability.
In general, disability insurers simply have many loopholes that they are able to use to deny claims in order to maximize profits. In many cases insurers may deny claims or cancel policies in the hopes that the claimant will not fight back. And, in many cases, disability claimants are unaware of their rights and they do no dispute denials.
This is unfortunate because it is often possible to successfully fight the denial of long-term disability insurance benefits. Consumers need to know that simply because they are told "no," the story does not need to end there. However, there are strict deadlines and protocol when it comes to appealing a denial and a mistake can result in lost benefits.
Those who have been denied disability benefits due to a lack of evidence, or for questionable reasons, may benefit from speaking to a disability lawyer about their rights and options.
Source: Huffington Post, Disability Insurance: A Blessing or a Burden?" Erin Havel, March 21, 2013
- For more information about disability insurance denial and how to take legal action if your claim has been denied, please visit our Wisconsin law firm's website.