Even if you’re fortunate enough to have long-term disability insurance, you never want to use it. Instead, you hope that it’s there for nothing more than peace of mind.
However, if an injury or illness prevents you from working for an extended period of time, this insurance can cover some of your lost wages to help you maintain financial stability.
Unfortunately, there’s a big difference between filing a claim for long-term disability insurance benefits and receiving an approval. If you receive a denial letter from your insurance company, it’s important to understand what went wrong so that you can take immediate action.
Here’s what you need to know: Insurance companies are in a position of power, even when it appears that you have a clear cut case. They don’t have any concern for your well-being or the fact that you have an active policy that should provide coverage. Instead, the only thing on their mind is the company’s profit.
Here are some of the most common reasons for the denial of a long-term disability insurance claim:
- Document error: You’ll fill out a lot of paperwork to file a claim, some of which is extremely confusing. If you make a mistake, it may give the insurance company reason to deny your claim, all with hopes that you don’t revisit your application in the future.
- Lack of medical evidence: To receive benefits, you must prove that you suffered an injury or illness that will keep you out of work. This means providing the insurance company with sufficient medical evidence. It’s critical to properly and thoroughly document all medical conditions and treatment.
- Your disability isn’t really a disability: Insurance companies love to argue that what you claim is a disability doesn’t actually live up to your policy’s definition. You should clearly understand what your policy covers, and the conditions you must meet to qualify for benefits.
Even though a long-term disability insurance denial will slow you down and cause frustration when you clearly don’t need it, you shouldn’t give in. Review your policy, understand your legal rights and take the necessary steps in filing an appeal. Your end goal is to receive all the benefits owed to you.