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San Francisco Long-Term Disability Insurance Blog

How long does an insurance company have to pay a claim?

When you are making a long-term disability claim, your expectation is probably that the insurer will handle the claim in a timely manner. But insurers often fail to support claimants as promised. Insurers make money by keeping claim settlements low and monthly premiums high. Protecting their bottom line is often their top priority. Even if a claim has been approved or a settlement has been reached, an insurer may attempt to drag its feet when it comes time to pay out what was agreed upon.

Long-term disability insurance provides security

An injury or sudden illness can send a family's finances into a tailspin. Recovering from such an event may be even more difficult with the stress of unpaid bills and lost wages. The U.S. Occupational Safety and Health Administration estimates that each month, thousands of workers suffer injuries that require months of recovery. While those in California whose employers carry long-term disability insurance may benefit from that coverage, it isn't always easy to obtain those funds.

LTD typically promises to cover up to 70 percent of an injured or ill worker's income. This coverage may become effective after any short-term coverage expires, which is within an average of 26 weeks. The length of the coverage also varies. Some employers purchase enough to cover an employee for five years, but others provide coverage until the employee reaches age 65.

4 reasons insurance companies deny long-term disability claims

Long-term disability insurance is designed to give you peace of mind by providing monthly income if you become unable to work. Individuals with an employer-based disability plan expect to receive benefits if they're needed.

However, there are often instances when insurance companies deny benefits. Some of their reasons can be legitimate, but many times they are not. Here are four common reasons insurers give for denying a claim: