Long-term Disability Insurance

Disability Insurance Claims

Long-term disability insurance, whether acquired as part of an employee benefits package or purchased individually, is designed to give an employee security and peace of mind. Policyholders believe that they will receive benefits if they become disabled and unable to work.

Unfortunately, many long-term disability insurance carriers either deny benefits or terminate them early. When this occurs, it is important to consult with an employee benefits lawyer. The attorneys at Dilley Haney, P.C., in Grand Rapids, Michigan, will advise you of your options if you face denial or early termination of benefits.

Long-term disability insurance claims are complex and are governed by different laws depending on how you acquired the policy.

Depending on how the policy was acquired and what type of coverage it provides, different laws apply. For example, an employer-provided policy may not allow you to sue the insurance company without initially going through an administrative appeal process. Even if you prevail in the administrative appeal or in federal court, you can usually obtain only the amount that the carrier would have paid in the first instance. Punitive damages are seldom awarded.

If you have purchased your long term disability insurance policy directly, or if you work in a government agency, a nonprofit or religious organization, you can sue your insurance company for denying you benefits or terminating them prematurely. In such a case, state law governing contracts applies. In cases where the policy was part of an employee benefits package, ERISA (Employee Retirement Income Security Act) applies rather than traditional state contract law.

Long-term disability policies often include a clause waiving the premiums for an associated life insurance policy. If you are disabled, the insurer may pay your life insurance premiums. However, if the company terminates your policy or your benefits, you could lose not only your disability insurance, but also your life insurance.

Whether your case is covered by ERISA or can be handled in state court, our Grand Rapids, Michigan, lawyers are well-placed to help. We assist you in gathering all documentation to support your claim as well as appearing on your behalf at all administrative hearings and in state or federal court.

Contact our law firm to discuss any matter related to long-term disability insurance.