Buying disability from an underrated insurer can have negative outcomes, such as the undervaluation of claims or the outright denial of claims. Both scenarios can adversely affect the policy holder’s financial health, forcing them to pay out of pocket for necessary living expenses.
Claims may be denied for numerous reasons. A lack of medical evidence or video surveillance disproving the disability are possible. Individuals may also miss the deadline for submitting and appealing a claim. Missing the 180-day deadline can prevent the insured from suing the insurer in court.
Insurers are notorious for paying out as little compensation as possible, which is the reason that they undervalue claims. Insurance companies often fail to correctly calculate the cost of living. While the negligence on the part of insurers is frustrating, policyholders have the legal right to fight back.