It always amazes me how much public misinformation there is out there regarding private disability insurance. Although separating fact from fiction may seem daunting, it also gets a bit ridiculous at times.
Insurance fiction usually stems from word of mouth from neighbors and relatives, some from fears and misinterpretative assumptions, but most comes from the ever growing Internet of “stories” taken as truth. It reminds me of the old retro idea, “Well, it’s in the newspaper, so it must be true!” Clearly, that’s not true today.
I think over the years, the “old wives tales” regarding insurance now feed the constant fear most people have when depending on money from a third party source. For example, by far, the most popular expletive I hear from insureds is, “But, if I do this, what if the insurance company gets pissed off?” (I think we’ll use “ticked off” moving forward.)
The idea that an inanimate corporate entity is capable of getting angry with you is very similar to a child-like/parent relationship where if you misbehave you will get smacked on the bare bottom, and made to stand in the corner. Although insureds are mature adults, most capable of defending their Plans and policies, they often give in to the child-parent relationship with insurers, even when it’s not necessary.
Let me reassure you that the claims process does not get “ticked off” at anyone, nor do they go out of their way to get even. Let me explain.
First, the only relationship between you and your insurer is written in the policy contract or Plan. Immediately upon entering the system your claim is given a claim number that identifies you throughout the investigative process. Some companies use date of birth and social security numbers, but mostly it’s the claim number or “insured ID”.
In addition, a financial reserve figure is determined and set aside to provide cash for future payments. These are the only two pieces of information that identifies YOUR CLAIM, leaving you as a person unknown and uncared for. Claims becomes a liability and are placed on your insurer’s Balance Sheet. If subsequently denied, insurers get an immediate hit to profitability equal to the amount of the financial reserve.
Therefore, the “personified you” doesn’t exist with an insurance company, and no, no one gets ticked off if you misbehave. I have to admit that on occasion, it may look like insurers are engaged in retribution for some action or other, such as when insureds refuse settlement offers and immediately receive update requests.
It’s important to remember that once a settlement offer is refused the claim goes right back into the settlement barrel and is subject to risk management activities. It’s not retribution for refusing a settlement, just normal routine claims management.
For some reason insureds go absolutely ballistic when insurers change their forms. The thought is that, “Oh my goodness, Unum is targeting me! I have different forms”, “Why are they asking this question when they never did before?”, “What does this mean…what does that mean?…Why are they asking that?” “What red flag made them send me forms I’ve never seen before?” “Why aren’t they asking about my medications anymore?”…….and on and on.
Flash bulletin…..using Unum as an example, there are many different versions of Unum’s update forms, some going back to 2014. Unum updated forms in 2015, 2016, 2017, 2018 and 2019. I know because I have all versions. The forms differ slightly, some with new questions, some with “functional capacity sections” deleted, and others shorter than the ones before.
Claims handlers are told my management to get rid of the older forms first. Personally, regardless of the version of forms my clients receive, we always use the most updated version I have on file.
Insurance companies are permitted to change their forms as often as they want to, and no one in particular is targeted. Questionnaires are changed periodically, and all insurers update forms to newer versions over time. Instead of just filling out the new forms as they did in the past, some insureds really get nervous when they receive different forms and create negative scenarios that do not exist. In the end, it’s an emotional trauma that need not happen. So “No”, insurance companies aren’t trying to trap you with new forms.
Another fiction is when case information you read about on the Internet seems to be happening to you and your claim. For some reason, information accessed on the Internet climbs right out of your computer and into your file. Actually, it shouldn’t.
All disability claims are different and are subject to different circumstances. Just because Joe’s story seems to match yours doesn’t mean the same thing is going to happen to you. All disability claims are unique and are subject to different circumstances. To assume that because something happened to Joe it will happen to you too, is another self-created fiction that should never cause you grief.
When I write articles for Lindanee’s Blog, I write to a generic audience. I give information so that insureds can make better decisions about their claims, but I never say, “This is definitely going to happen to you.” Sometimes it may seem as though I’m right, but that’s only because I’m experienced and have enough exposure to claims to give you accurate information. Readers of my blog should never presume every subject pertains to them unless there are clear evidences that it does.
Although I hear, “I have a friend who used to work for my company who went out on disability, AND HE SAID…..” Forget it. His circumstances have nothing to do with you and your claim. Your concerns should relate only to the particular circumstances of your claim only.
When it comes to disability claims, sometimes it is hard to distinguish between what is true and what is made-up. But, if you concentrate on the unique circumstances of your own claim and try to discover ways to resolve problems, the “old wives tales” won’t matter.
