We've noticed a disturbing trend recently in the group long-term disability world recently.
Let's say someone is entitled to 24 months of benefits because they can't do their old job. The insurance company agrees they are disabled and begins paying the claim.
Then, at around 18-20 months, they abruptly terminate the benefits. The comb through the record and come up with some theory upon which to terminate the claimant. Saves them anywhere from 1,800 to 5,000 per month for the next 4-6 months.
Its not a lot of money, honestly, for the insurance company, but, spread over many claimants (as we have seen recently) it can really add up.
Here's what they are banking on: its going to be very difficult to find a lawyer to fight for only 4-6 months of benefits. There's simply not enough money involved.
We've looked at a number of these types of situations recently and while each case is different we usually do find the insurance company caving in shortly after filing suit.
See, they pay their lawyers by the hour and they usually end up paying a bundle to defend these claims. So the claimant who get lawyers get paid and therest go away. This means increased profits for the insurance company.
If you are in Virginia and have had your long term disabiltiy benefits terminated early, we'd love to review you denial letter. A review of your long term disability denial letter is always free.
After that, we'll try to help you with a strategy.