Long-Term Disability Scam

Hear Ye, Hear Ye! All long-term disability insurance plans as part of your employment package are a scam. Yes, scam. If I could have enough energy to add one more thing to my plate, it would be to work with our state and federal representatives to outlaw how these companies operate.

These are big companies. Mine has a very famous owner. Now I know how he got rich! I often imagine what a hell would be for him. I imagine that he would have to pay out claims! That would be his hell.

The concept of long-term disability insurance is to cover the difference of your net income between State Disability income (good for two years) and your regular paycheck. When the State Disability runs out, they are to cover the difference of Social Security Disability and your net paycheck until you are 65 years old. This is why we have this insurance. It is to protect our income in case we become ill.

At first contact, they wanted everything. Great, another investigation into my financial and personal life. Then, they had a long questionnaire to be completed as soon as possible, which ended up being seven computer pages long. Everything had a deadline. If you didn’t jump through this hoop by a certain date, the claim would be disallowed.

Immediately they sent this to me:

No LTD benefits will be payable to you for any Total or Partial Disability during
any of the following periods:

• any period of your Total or Partial Disability that is due to Chemical and Environmental Illness, unless you are under the continuing care of a Physician
• providing appropriate treatment in accordance with your disabling condition.
• After you complete your Elimination Period, LTD benefits are payable for 24 months.
• Benefits after the first 24 months are payable only if you are confined in a Hospital or Institution.
• The threshold question for determining the applicability of this 24-month provision.

Chemical and Environmental Illness means an allergy or sensitivity to chemicals
or the environment including but not limited to :
a) Environmental Allergies
b) Sick Building Syndrome
c) Multiple Chemical Sensitivity syndrome
d) Chronic Toxic Encephalopathy
Chemical and Environmental Illness does not include Asthma or Allergy-induced
reactive lung disease. (emphasis added.)

They said, “Sorry, but you have an environmental illness and we will only pay for 24 months.” And they did. I have no income other than $1,164 from Social Security. I used to earn over $65,000 for nine months of work. What would loss of your income and an increase in medical expenses do to your budget?

We hired a lawyer to write a letter to fight this determination. It cost us just about $5,000.00. Great letter but it didn’t work. The Porsche in the photo at the beginning of this blog was sold to pay for this lawyer.

I did learn from the lawyer, who requested and received the entire huge long-term disability policy, that for any illness, there was an addendum shortening or absolving them of any long-term payouts.

Demand to read your work policy then buy a private long-term disability policy that you have thoroughly read. End of tirade.

Next: Social Security Disability