Americans all over the country purchase private disability insurance that pays out in the event that they cannot work. When it comes time to file a claim against their policy, their claim is denied. The insurance company quotes some provision of the contract that is abstrusely worded and hard to make sense of. Nonetheless, you’re in a position where you need that policy to pay out in order pay your bills. What do you do? The fact is insurance companies are in the habit of denying claims. That does not, however, mean that the claim is deniable. It means that you have yet to leverage the insurance company into a legal corner. This often means getting more evidence, disputing the findings, and forcing the insurance company to honor its claim. CJ Henry Law Firm has helped hundreds of Florida clients wrestle their money away from stingy insurance companies. If you’re having a difficult time getting your private disability insurance claim paid, contact us today. We may be able to help you get the evidence you need to prove your claim.
How Do Private Disability Insurance Claims Work?Insurance companies that offer LTD or long-term disability insurance generally offer it through group plans paid for by your employer. Sometimes, individuals purchase these policies themselves. These folks are simply preparing for a medical disaster should it come to pass. They are banking on the fact that their LTD insurance will pay out should they be unable to work. This is how they’ll pay their bills and feed themselves. On the other hand, insurance companies tend to commonly and unapologetically deny these claims. This is especially true for those who are making a claim on their policy for the first time. They do this regardless of whether or not the claim is valid.
Why Do Insurance Company Deny Most Initial Claims?There are a couple of reasons. Firstly, insurance companies often have policyholders that simply give up. If even 5% of all policyholders give up after a rejection, that is potentially millions of dollars that they have saved in disbursements. In other words, it’s worth a shot. Secondly, there are valid reasons for denying private disability insurance claims. Among those is that the worker simply doesn’t want to work any longer, not that they can’t work. Those make up a certain percentage of all the claims that are made. Then there are valid claims made in good faith against policies. For instance, a worker:
- Has contracted a debilitating illness or condition
- Suffered a severe injury in a traffic accident
- Is injured in such a way that they are no longer able to perform the duties of their job
What Do You Need to Prove in a Legitimate Claim?As we said earlier, just because your claim was denied does not mean your claim is deniable. By law, insurance companies must act in the best interests of their policyholders. This means honoring legitimate claims made against a private disability insurance policy. Legitimate claims have a two-factor test:
- You must be able to prove that you have the ailment or injury that you say you have
- You must be able to show that this ailment or injury prevents you from working