Whether or not you should continue paying for Long Term Disability Insurance Premiums is a question we get a lot. We’re sharing the answer below.
The question which routinely comes up for my clients with pending claims for Short Term or Long Term Disability benefits is whether to continue paying the premiums for the insurance. The short answer is usually found in the Policy which typically provides that premium are waived during a period of disability.
However, the problem is usually not solved that easily. Typically, my clients have come to me because benefits have denied. So, should the premiums be paid if the insurance company is contending you are not disabled? The answer here would be a function of the strength of the medical evidence supporting the claim and your own ability to pay. I say this because at this point you would not be insuring the original condition which you contend now disables you but some future, independent medical event which might also disable you.
The downside to not paying is the chance that the second, now unforeseen medical event is not covered. If you stop paying after the first medical event and it is later determined that the first event is not disabling, then coverage would not be in place for the second event medical event.
Of course, the best overview is to consider the fact that, at this point, you would have pending a claim on the first medical event. In the meantime, what choice would you make about taking out an insurance policy with the company which is now denying your pending claim? I am sure you filed a claim in good faith in the belief that you disabled and unable to perform your work duties. The insurance company’s agent has now poked holes in your claim and denied that you are disabled. Is this a company that you want to have an insurance policy with? Probably not. Why keep paying the premiums?
The foregoing is not intended as legal advice. The issue at hand is one which requires specific consultation about the specific surrounding circumstances. The foregoing is only submitted as an illustration of the many legal pitfalls presented. If you have any questions about your Short Term Disability or Long Term Disability claim, the lawyers at Herbert M. Hill, P.A. would be glad to answer any questions you may have. We are available at 407-839-0005 or, toll free, 844-454-59995, If you would like, after discussing your case, we can set a conference. In most circumstances, that conference would be free of charge but in no circumstance would you be under any obligation to hire me nor would you feel any pressure from me to do so.
Herbert M. Hill, P.A. is a law firm located in Orlando, Florida with a practice extending throughout the state of Florida. While the vast majority of cases handled are for disability insurance benefits, areas of practice include employee benefit claims of all sorts. The firm handles any claims arising under the Employee Retirement Income Security Act (“ERISA”) for disability benefits, medical benefits, retirement benefits of any sort, including pension, 401k, termination agreements or the like as well as claims arising under private disability policies.