This guide is just the tip of the iceberg when it comes to understanding the nuances of long-term disability insurance claims. The more familiar you are with the intricacies of the process, the better equipped you’ll be to handle every twist and turn that comes your way.
Remember, as a policyholder, you are entitled to comprehensive and unequivocal information about your rights and the claims process. With knowledge and expert support, you can overcome an adversarial system working against you.
Long-term disability isn’t just a financial concern; it’s a life-altering event that demands a measured, educated response. Michail Hack, partner at Schwartz, Conroy & Hack PC, has recorded a series of video blogs that aim to answer some of the most frequently asked questions related to long-term disability insurance claims and what you can do to ensure coverage:
How Much is My Claim Worth?
Determining the value of your long-term disability claim requires a thorough understanding of your policy’s benefit structure and the insurer’s method of calculation. Conduct a careful review of your policy’s provisions to grasp how benefits are calculated. It’s prudent to engage with a financial advisor or a disability attorney who can help you interpret the policy language and provide a detailed financial analysis to ensure you have a realistic and comprehensive figure representing your claim’s true worth.
It’s not uncommon for the value of your long-term disability insurance claim to be shrouded in mystery. Insurance companies often calculate this in ways that aren’t immediately transparent to policyholders. But clarity is power. Understanding the intricate formulas behind your claim’s valuation can be the key to unlocking the funds necessary to secure your financial future.
The first step is deciphering how your insurer quantifies your potential benefits. A standard approach is to calculate the present value of all future disability payments, taking into account factors like inflation, interest rates, and the duration of your claim. This can be a dizzying set of variables that, when taken into account, frequently yields a sum far below what policyholders initially expect.
How Do I Approach The Insurance Company About A Buy-Out of My Claim?
You must tread carefully, particularly with matters as delicate as the potential buyout of your long-term disability claim. Ultimately, you should not approach your insurance carrier. Inevitably, when you approach long-term disability insurance carriers like Unum, Cigna, New York Life, Hartford, or Principal for a buyout of your claim, it’s actually considered an official red flag and something that they have to report. It might even cause them to launch an investigation into your claim. If you approach a carrier about a reasonable buyout of your claim, you might significantly prejudice your rights to an ongoing benefit. In very limited and narrow circumstances, informed by expert legal advice, it might good idea to inquire about a buy-out. If you have a question about what these limited and narrow circumstances are, contact us.
What Should I Do If The Insurance Company Approaches Me for a Buy-Out of My Claim?
When you are approached by your insurance company with a buy-out offer, take a step back and appraise the proposal critically. This is not a favor, but a business decision made in the insurer’s interest. Scrutinize and question the offer, compare it against your claim’s worth, and consider the implications on your future financial stability. Consult with a seasoned disability attorney and financial planner to evaluate the offer and negotiate terms that align more closely with your valued interests.
What Can I Do When I am Disabled?
One of the murkiest areas of long-term disability claims lies in the definition of “disability” itself. Policies often leave this term open to interpretation, and not always in the insured’s favor. Understanding how the insurer defines disability can drastically alter the trajectory of your claim. Navigating life with a disability can be challenging, but proactive management of your condition and its impact is essential. Stay engaged in recommended medical treatment, maintain thorough and accurate records of all care, and keep open lines of communication with your healthcare providers.
The more activities you undertake while you’re disabled, the greater the insurance company’s going to scrutinize your claim. Certain policies provide coverage if you are unable to perform your own occupation, while others may deny coverage if you are capable of performing any occupation that suits your age and experience. For individuals with a valuable long-term disability claim who wish to preserve it, my advice, albeit disheartening, is to withdraw from public view. Don’t do any volunteer work. If you want to do volunteer work or some kind of occupation that’s different from your previous occupation, you really need to seek out competent legal counsel to explain to you what you can and can’t do.
What Should I Do About Social Media?
In the context of a long-term disability claim, it’s imperative to consistently remind yourself that insurance adjusters are monitoring your online activities. Never post anything that could be misconstrued as contradicting the limitations of your disability. The most straightforward solution to this is to stay off of social media. Is that Instagram post worth a million dollars in future benefits? Is that Facebook group you belong to really worth a million dollars of future benefits? Photos that you post, or even any photos of you your friends post, can easily be misinterpreted by the insurance company. Staying off of social media is one of the least expensive things you can do to protect your claim. Otherwise, you might run into an issue that necessitates the assistance of legal counsel.
