10 More Legal Mistakes Professionals Make When
Filing a Claim for Disability (Mistake #6)
In an effort to provide professionals with more information about how the disability claims process works and identify some of the most common pitfalls for professionals filing disability claims, Comitz | Beethe attorneys Ed Comitz and Derek Funk have compiled an updated list of the 10 most common mistakes we are seeing physicians, dentists, and other professionals make when they file claims under the new post-2000 generation of disability policies (which are much more complex and stringent than the policies sold to professionals in the 1980s and 1990s).
In this post, we’ll be looking at the common mistake of reducing work hours instead of filing a claim.
Mistake # 6: Reducing Work Hours Prior to Filing a Claim
Reducing work hours may seem like a logical solution for a professional experiencing a condition that is beginning to impact his or her ability to work. However, as noted above, working fewer hours per week for an extended period of time prior to filing can make it much more difficult to collect, because it opens the door for the insurance company to argue that the professional has modified his or her job duties and is no longer practicing full-time. Continuing to work post-diagnosis of a potentially disabling condition also raises malpractice concerns and cuts against the severity of the condition.
Delaying filing, while reducing hours and continuing to work may also reduce the amount of lifetime benefits an insured is entitled to. Many policies that provide for lifetime benefits now only pay benefits if a claim is filed before a certain age or pay a lower lifetime benefit amount if a claim is not filed before a certain date. Additionally, some policies now require insureds to work a certain number of hours per week to maintain coverage, and if an insured’s work hours per week drop below the minimum threshold, he or she may lose coverage altogether.
The decision of when to stop working and/or reduce work hours is one that is particularly difficult for professionals who suffer from slowly progressive or degenerative conditions. Many professionals also need to sell their practice as part of the work transition, and need to keep up the value in the meantime. In these situations, the timing of both the sale and your claim is critical.
Action Step: Consult with an experienced disability insurance attorney before reducing your work hours or selling your practice, particularly if you have a progressive or degenerative condition.
To read the rest of the 10 most common mistakes, click here.
To learn more about some of the tactics insurers use to deny claims and other mistakes to avoid, click here.