3 Misconceptions About Private Disability Insurance

Posted on: 16 November 2016

Suffering an injury that results in a disability can have an impact on your likelihood. To avoid economic disaster, many people are turning to private disability insurance. Unfortunately, misunderstandings about the insurance and what it offers can lead to poor selection choices and also disagreements with the insurance provider later. Before shopping for disability insurance, reconsider these myths about the coverage to help you make an informed decision.  

Social Security Disability Will Cover Your Expenses

Social Security disability does provide some measure of protection following an injury, but there are several reasons you should not solely rely on it to help see you through a period of being unable to work. One of the major problems with the federal government's program is that it can take months for you to be approved for benefits. There is also not a guarantee that you will be approved for assistance.  

By contrast, if you have private disability insurance in place, you can file a claim with the provider and receive help within a shorter period of time. You also do not have the same concern when it comes to approval.  

You Cannot Appeal a Disability Denial

When you submit a claim under your disability insurance, it is reviewed and a decision is made regarding whether or not the claim will be paid. Although many claims are paid, some are denied. Some people believe that because the coverage is through a private provider, they cannot appeal an adverse decision.  

In actuality, you can file an appeal. If your claim is rejected, the insurance company has a responsibility to explain exactly why and provide a path to appealing the decision. If you are not still happy with the decision following the appeal, you and your attorney can take action to resubmit the claim or explore other legal actions.

Your Employer Provides Long-Term Disability Insurance

Many employers do have long-term coverage for their employees, but sometimes, it is not enough. There are factors that can influence just how much of a payout you can receive if you need to file a claim.  

For instance, your benefits could be taxable. As a result, your benefits could be drastically lowered once taxes are paid. You could also face the problem of having to shop for new coverage if you switch employers and your new employer does not provide coverage. 

Before making a decision of whether or not private disability insurance is right for you, research your options and confer with an expert, such as your lawyer, to learn more. You can learn more about disability claims by clicking here