We know long term disability policies are sold on the auspice that high-earning professionals should be covered if they can’t work anymore; but they are really sold to make the insurer money. Selling the “image” of security in tough times is one of the many things insurers may not want you to know about.
Why is this? You just have to follow the money. If a customer knew in advance how difficult it would be to get paid after submitting a claim, would he or she really buy the insurance? In fact, there are a number of things long term disability insurers may not want you to know. This post will highlight a few of them.
Ambiguous terms are interpreted in your favor – While this is a basic tenet of contract law, insurers know that you did not go to law school probably won’t consult an attorney prior to buying your policy. So if you understand the meaning of “totally disabled” to mean that you cannot perform “important duties,” you shouldn’t be compensated as if you cannot perform “some of your important duties.”
We’re on the hook if we recommended insufficient coverage – If your disability coverage benefits are not enough to cover your actual losses based on an agent’s recommendations, we may be liable for the entire cost of your loss, and not just the policy limits.
We teach our agents and adjusters to be nice, not to be experts – More often than not, our agents are not experts when it comes to knowing the ins and outs of the policies they sell. There’s a big difference between being able to sell a policy and interpreting one; and if we focused on policy details we wouldn’t sell very many policies.
If you feel like your insurer is hiding things from you, or just telling you enough to keep you at bay, a conversation with an experienced disability law attorney may be necessary.