What You Can Do if Your Long-Term Disability Claim is Denied

If you receive a denial letter regarding your application for LTD benefits, it’s difficult to know what your options are and which is the right decision.

Regardless of the reason for the denial, always seek the advice of long term disability lawyers in Toronto as soon as possible. A reputable LTD lawyer will discuss your case with you, look at your documents, give you an honest assessment of how strong a claim you have and advise you of your best option. 

Below is a summary of the three options you have after an LTD claim denial.

Accept the Insurance Company’s Decision

Denial letters are specifically designed to make an insured feel helpless and discouraged. The intention is to intimidate you into believing that you have no case and that even if you do, they are too big, and you will not be able to get them to pay.

If you have a legitimate claim, as many people do whose applications are denied, this is simply not true. Disability lawyers’ level the playing field because they know the law, and they know how to hold insurance companies accountable and make them pay the benefits they owe.

Despite how discouraged you feel after receiving a denial letter, it’s crucial to remember that regardless of the reasons they give, an LTD lawyer knows the law and how to use it to counter their arguments.

Using the Insurance Company’s Appeal Process

In the denial letter, the insurance company probably advised you of your right to appeal their decision through their appeals department.

Most long-term disability lawyers strongly advise against this option.   

The chances of a successful appeal are extremely low, and often the appeals process wastes a lot of time to simply get denied again.

You have two years from the date on your denial letter to file a lawsuit against the insurance company. They know this, and their appeals process can basically take up that 2-year window. 

Also, during their appeals process, the insurance company makes you attend various assessments while they keep stalling and giving you the impression that they are considering your appeal and that the assessments are necessary to help with their decision. 

Insurance companies are in business to make money, which they won’t if they pay out claims. Remember, the person who denied your claim and the person who denied your appeal both work for the same company and are paid by the same employer.

Filing a Lawsuit Against the Insurance Company

Most LTD lawyers recommend filing a claim against the insurance company to protect yourself from losing out on the benefits you deserve.

Often, the only way to ensure that your application is reviewed fairly and that you receive the support you are entitled to is to file a lawsuit in court. 

Using the courts to address your claim for LTD benefits also gives you the opportunity to claim the benefits you should have received between the denial and when the case settles, or a trial is completed. You can also apply for costs and possibly damages if the insurance company acted in bad faith. 

The vast majority of cases settle because an LTD lawyer knows how to submit an application the insurance company has to take seriously.