Everyone knows that health insurance is necessary for covering medical costs arising from a severe accident or disabling illness. But there is another serious consequence of being injured or sick: the inability to work, resulting in lost wages. By replacing 40 to 60 percent of your gross income—tax-free—long-term disability insurance provides financial support for you and your family in the event you are physically unable to earn a living wage. According to the Social Security Administration (SSA), as many as 30 percent of Americans will need some form of income protection before they reach retirement age due to disability.
Disability Insurance Bad Faith: A Breach of Trust
When you buy disability insurance, you put the utmost faith in your insurer. Yet in many cases, insurance companies betray that faith by delaying, denying or underpaying legitimate disability claims. Shockingly, many insurers view disability insurance denial as smart economics—a means for minimizing losses and boosting profits. In fact, these companies can save millions of dollars each year by limiting the amount of claims that are paid out to policyholders.
In 2002 on the television show 60 Minutes, several employees of UnumProvident, the largest provider of group disability insurance in the U.S., revealed how they were instructed to deny claims to meet monthly revenue targets. One former employee told how claims representatives received bonuses as a reward for terminating the benefits of disabled policyholders. To date, UnumProvident has been the subject of nearly 3,000 insurance denial lawsuits and complaints. Read about more insurance denial lawsuits
Has Your Disability Claim Been Denied?
Every insurance policy contains an implied promise from the insurer to act in good faith. Fortunately, insurance companies that fail to do so can be held accountable for their actions. If you or a family member has been denied a legitimate claim or have had your disability payments terminated, an attorney with experience in dealing with these types of claims can help you learn more about your rights.
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