Suicide and life insurance benefits.
Life insurance normally pays out when the policyholder dies, unless the circumstance of the death fall under a particular exclusion clearly specified in the policy. Life insurance provides a financial safety net that can last for decades. One concern that some insurance shoppers have is that an insurance company won’t pay the death benefit if the policyholder dies. This is usually unfounded as life insurance policies almost always pay out; there are even protections in place if an insurance company goes bankrupt. But are there scenarios where life insurance won’t pay out? For example, does...
read moreSettle your long-term disability claim – it’s GOOD for you.
You made a claim with an insurance company for long-term disability benefits. Your claim for long-term disability benefits been denied, or your long-term disability benefits were approved then terminated. Is the struggle slowly killing you? The solution? Settle. It’s good for you. Here’s why. Financial Peace of Mind: A claimant and his or her family frequently face dire financial consequences when the claimant is disabled from working, and then deprived of the disability benefits on which they had expected to rely. A lump sum settlement of a disability claim brings the financial...
read moreConfidentiality clauses – why insurers love them, and why they should be abolished.
Most of my cases settle, often at mediation. Typically the insurer will bring a “standard” form of release to the mediation for my client to sign. If not, when the insurance company’s lawyer sends me the cheque it will be accompanied by a form of release which my client must sign in order to receive the settlement funds. In either case, the release will always contains something not usually discussed – a confidentiality clause. A confidentiality clause prohibits the parties to a settlement from disclosing the settlement terms. Confidentiality raises numerous problems. It can be bad for...
read moreAre my LTD benefits taxable or not? It depends.
When assessing a litigated claim for long-term disability benefits, one very important consideration an insurance denial lawyer must always be aware of is whether the long-term disability benefits are taxable or non-taxable under the specific disability policy at issue in the claim. Long-term disability benefits are typically taxable under a policy when an employer pays a portion (or all) of the insurance premiums on a disability policy. Long-term disability benefits are typically non-taxable under a policy when an employee pays 100% of the insurance premiums on the disability policy. It...
read moreMy most memorable case of 2016.
The past year has seen many interesting and surprising cases land on my desk. But my most memorable case involved a woman I’ll call April. April had been employed by a financial institution for a number of years when she developed cancer that forced her to stop work in May 2001. She applied for long-term disability benefits under her employer’s group insurance policy. Her claim was approved and benefits were paid starting in November 2001. Although the cancer treatment went well, April developed a number of mental illnesses including major depression, a generalized anxiety...
read moreCan my insurer contact my doctor directly?
Your disability insurance company has asked your treating physician to complete a questionnaire regarding your ability to work and current medical condition, what should you do? Requesting that updated questionnaires be completed by a claimant’s treating physicians seems to be standard in the review process. Usually, these forms consist of yes or no questions, check boxes and requests for comments on restrictions and limitations. If you know the insurance company has requested such questionnaires from your physicians it is a good idea for you to make an appointment with your physician...
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