A huge issue with these types of policies is the blatant discrimination against those who suffer from a mental illness or similar condition. Most all of these policies limit payments to 2 years.
What happens if your mental or nervous condition was actually caused by trauma? What happens, for example, if you were injured in a car accident?
Most disability insurance companies will still limit your benefits to 2 years. Many courts are split on this issue.
In Pennsylvania a federal court recently ruled that Prudential insurance compani's mental illness limitation would not apply to a man who suffered serious injuries in a car accident. The court recognized that other courts are split on this issue.
The court said that “if the depression and anxiety stemmed from a physical disease or condition, the 24 month limitation will not apply.”
The case is White v. Prudential Ins. Co. (E.D. Pa.)