Steps when you’re denied LTDI

Long-term disability insurance can be a lifesaver to help with expenses when someone becomes incapacitated, especially if that person is a household's primary breadwinner.

According to insurance provider Unum, three out of every 10 workers between the ages of 25 and 65 will experience an accident or illness that will keep them out of work for three months or longer. When an employee cannot work for an extended period of time, a long-term disability plan can help cover a portion of that person's salary.

In order to qualify for disability, employees can be covered if they worked full-time for a certain amount of time. Applicants must also apply for long-term disability within 90 days of their last day of work.

But what happens when someone puts in a claim to their insurance carrier for long-term disability and that claim is denied?

If the policy is a private one that a person purchased on their own, they do not have to file an appeal before a lawsuit. If the policy is governed by Employee Retirement Income Security Act - or ERISA - a person may have to jump through administrative hoops before filing an appeal or lawsuit.Either way, once a carrier has made a decision to deny a claim, it will not pay any benefits until the case is resolved through an appeal or following a lawsuit.

That's why it's important that people who have been denied benefits contact a reputable lawyer who can evaluate their claim and determine the next course of action.