You can get long-term disability insurance through your employer, as part of a benefit plan, or through your own effort, like getting an individual policy. Either way, you are getting this kind of insurance just to make sure that when the need for it arises, you can get financial assistance.
But there is one important thing you should know – insurance is a business. For this reason, insurance companies may act in bad faith just to save money. Below are some of the most common acts that may be signs that your insurance company is acting in bad faith.
Denying legitimate claims
You are truly disabled under the terms and agreements between you and the insurance company. You have the proper medical records to validate your disability. You have submitted your claim in a timely manner. Yet after all these, your claim has been denied.
According to the website of Fields Disability, those who have had their claims denied may have other options, such as appealing to the insurance company to reconsider. Still, it cannot be denied that insurance companies reject valid claims, with the intention of saving money and discouraging claimants to pursue coverage.
Approving claims too swiftly
If your claim has been approved, you have a legitimate reason to celebrate. But if it has been approved too quickly, postpone that celebration for a while, because the quickness may be a sign of bad faith. This is a common tactic of insurance companies. They swiftly approve claims while giving minimal coverage, giving the illusion that the claimant has gotten what he deserves, when in fact, he has not, and the insurance company has just saved some cash.
Delaying the process
Insurance companies will do everything they can to discourage your from pursuing your claim, so they are going to make the process as hard as possible. They may delay parts of the process, including the acquisition of the proper documents needed, the studying of the said documents, and the approving and denying of the claim.