LTD insurance?

[Sam]

I came across the following article. I'm beginning to question my LTD insurance. I think most people pay for it, but is it worth it? What's your opinion?

Delays, Denials & Deceptions
The Truth about LTD Insurance

Anyone has first hand experience with this? I wonder if this only applies to certain disabilities (as CFIDS) or to all. In other words, is it common practice for insurance companies to deny first, and keep denying as long as possible?

[MikeD]

Can't anyone have chronic fatigue? It has no provable symptoms. "But I'm tired all the time."

I am on LTD from UNUM for vascular dementia from a lifetime of diabetes. It mostly affected my short term memory which makes it difficult to learn new things. I had to undergo all sorts of tests (both metal and physical) and was helped by my primary care phys., an internist, with filling out the forms. I was approved on the first try. UNUM made me apply for SS and paid for a lawyer to appeal when I was at first denied.

I used to periodically have to be retested for UNUM but they haven't asked for that in a long time, over 5 years.

When I tried googling on the web for info about LTD I ran into a lot of these people complaining that the insurance wouldn't cover their disability. It seemed to me that most of them had all these nebulous complaints that couldn't be diagnosed. I suspect that a lot of them were allergic to work.

Mike D.

[brewer12345]

I think partly it depends on the carrier. There are very few companies I would buy this from.

[mickeyd]

I have never been a big fan of LTD though I know many folks seem to like the coverage. It seems too costly as the insurance really has not had extensive claims paid so companies are still not sure what to charge. When not sure, they will opt for a higher rate.

[AltaRed]

Yes, there is risk the insurance company will find a way to deny your claim, but IMHO, LTD insurance is a lot more important than life insurance. If you become incapable of working, not only are you not able to earn an income, you are now an expense burden to the rest of your family (unless you are all okay with living on welfare in poverty). How are all of you going to cope?

[saluki9]

Quote:

Originally Posted by mickeyd I have never been a big fan of LTD though I know many folks seem to like the coverage. It seems too costly as the insurance really has not had extensive claims paid so companies are still not sure what to charge. When not sure, they will opt for a higher rate.

Are you kidding? American insurers have been offering disability insurance for over 100 years. Outside the US it has been sold since ancient times.

[mickeyd]

Quote:

"Are you kidding? American insurers have been offering disability insurance for over 100 years"

Maybe so, but LTD has only been around since the late 70's so very few claims have submitted, much-less paid. Insuracnce companies base their rates on what they expect to pay in the way of claims and what their claims experience has shown. When they come out with a new product (like LTD) they have no real claims history to go on so they have to use the best guess of the actuaries and then add on a buffer as to not lose money.

By contrast, they have over 100 years of life insurance claims (millions of people) so LI rates are very accurate. They call it the law of large numbers, and LTD is just not there yet.

There is a big difference between Disability Income insurance and LTD I believe.

[chinaco]

If you do not have a problem that is officially recognized by the AMA in a way that it can be diagnosed... you are in trouble as far as LTD goes.

However, if it is a condition that is not excluded in the contract and you can get SS to pay... you might win if you take the insurance company to court.

[Alan]

I just read a news article about the LTD insurance that British servicemen have been buying, without receiving the warnings on what it does not cover. Not exactly relevant to this thread but still disturbing. On being invalid'ed from Iraq, Afganistan etc, the LTD insurance they have been buying will support them with physical injuries (limb loss, blindness etc) but stress disorders are clearly excluded in the fine print that no-one has been pointing out to them.