Los Angeles Area Disability Claims Insurance Attorneys - We Created the Law of Insurance Bad Faith


909.621.4935 | 800.458.3386


Consumer SSI Disability Insurance Legal Resources - Los Angeles, Beverly Hills, Claremont, San Bernardino, California Attorneys
Filed In: Disability Insurance Claims FAQs

Los Angeles County California SSI Lawyers • SSD Attorneys • Beverly Hills • Claremont • Los Angeles & Southern California Disability Insurance Law Firm

Supplemental Disability Insurance Regardless of your income bracket, your earning ability gives you and your family peace of mind that you can pay bills, serve dinner each night and afford gas for the family car. If the unthinkable happens, losing an income source can turn your life into financial ruin.

Regardless of your age, make sure you read the language and buy an "own occupation" policy that protects you until age 65. The limitation clauses can be tricky, especially those for mental-health claims or self-reported claims such as headaches, chronic-fatigue syndrome or fibromyalgia.
  

If an employer offers disability insurance coverage, is it necessary to purchase a supplemental policy?

Yes. Even if your employer offers disability coverage under a group policy, it is a good idea to buy your own individual coverage as well. Group policies are subject to cancellation at any time, and the maximum monthly benefit may not be adequate for your needs. Also, group policies lack the legal safeguards and consumer remedies of individual policies.

If the insurance company delays or denies your group benefits you only get your back due benefits, in some cases interest and in rarer circumstances attorney fees, and only after you formally exhaust all administrative appeals and file a lawsuit. And when you do file, you will not have a trial by jury and there will be no remedy for emotional distress, extra contractual (if your car was repossessed or your home went into foreclosure) or punitive damages.

Group policies also lack the tax advantages of individual policies: If you pay the individual disability policy premiums yourself, your disability benefits will be tax-free, whereas group benefits are taxable because your employer is paying your premium.

In addition, group disability insurance policies often have stricter definitions of disability, and more restrictions and exclusions than individual disability policies. Group benefits are always reduced or offset by any payments you are eligible to receive from state disability, workers’ compensation, Social Security, retirement plans, or any lump-sum settlement you receive as the result of an accident that causes your disability. Most group policies also include a clause delaying coverage on pre-existing conditions for one or two years. Finally, if you leave your employment, your group policy isn’t portable and you cannot take it with you.

More Insurance and Legal FAQs:

Suggested Reading

Protect Your Income With The Right Amount of Disability Insurance

Most employees believe they're adequately covered when it comes to disability insurance. Nonetheless, if you're an employee and have company-sponsored insurance, you still may want to consider purchasing supplemental insurance to protect your family.

Social Security disability benefits are based on an injured person's lifetime earnings before disability began and not the severity of the disability. Private insurance does not affect eligibility for Social Security disability benefits, so purchasing an individual disability policy can be a good safety net, especially if you buy it when you're young.

Always research carriers and buy from a company with a stellar claims-paying history. Cheap premiums might look attractive, but they'll do you no good if the insurance-provider goes broke when you need it most.