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Class Action Lawsuits for Disability Insurance

Living with a disability can make life challenging. Receiving disability benefits eases much of the financial struggles experienced by people with disabilities. However, some unscrupulous insurance companies undervalue their customers’ benefits. Filing a class action lawsuit is a practical solution.

Disability insurance helps people stay protected from the long-term financial risks that result from an unexpected illness or a traumatic injury. This type of insurance can be lifesaving to not only the policy-holder but to family members who depend on this individual’s income.

People who purchase disability insurance when they are young and healthy but are subsequently unable to work due to an illness or injury, have the financial means to pay for essential living expenses, such as food, utilities, mortgage payments, and car payments.

Illnesses are the primary reason behind work-related absences. Common ailments that affect a large number of Americans include cancer and heart disease. The Council for Disability Awareness also states that back injuries account for a significant portion of long-term disability claims.

While disability insurance provides a steady stream of income for those who suffer from a disability, it’s important that the policy be purchased from a reputable insurer. Receiving disability benefits is a long-term commitment, so the insurer must be experienced and demonstrate financial strength.

Class Action Lawsuit

 

Why do insurers deny or undervalue claims?

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.

 

What is the process for a lawsuit against an insurer?

Each policyholder who has paid into disability insurance is entitled to collect the appropriate amount of compensation when an illness or injury prevents them from working. When this fails to happen, these wronged individuals can hire a lawyer to retrieve the money that they are owed.

Financial hardship makes individuals desperate to receive their disability payments. But it’s important to be aware that a lawsuit against a negligent insurer can take up to a year to resolve. The lengthy time frame for these cases, which are usually settled out of court, is due to scheduling availability.

Lawsuits also extend uncomfortably long because of the time and money involved in gathering facts, information and evidence. Attorneys working on the case contact the insurer to obtain claims files, while also collecting medical records to prove a client’s case.

Upon amassing the necessary evidence, the lawyer will serve the insurance company and file with the court. A copy of the papers from this Settlement of Claim lawsuit is provided to the client. The client will see the compensation asked for on these legal documents.

 

How is the amount of compensation determined?

However, the compensation requested is not the amount that the client will receive. If a claim is successful, several variables come into play that determine the actual payout. These factors include medical expenses related to the injury or illness and costs of future medical treatments.

Settlements also take into account the plaintiff’s lost wages and his ability to perform similar work in the future. Time lost to undergo medical care is considered. Experienced lawyers will also present intangible losses, such as pain and suffering and the effect on the individual’s quality of life.

Mediations and settlements are typically sufficient to resolve lawsuits for disability insurance offenses. The settlement amount is what both parties consider to be fair. Once an agreement is made, the case is resolved. In the rare event of trial, the plaintiff’s lawyers will present a strong case backed by evidence.

Insurance companies are powerful, which makes filing an appeal for a denied claim an intimidating endeavor. However, law firms that are experienced in handling class action lawsuits can level the playing field and help clients obtain the compensation they are rightfully owed.

Plus, many individuals are unaware of their legal rights. Quality legal counsel is invaluable in helping clients understand their legal options. Lawyers can help their clients win an appeal by recommending further medical testing and obtain expert opinions about their disability.

Strong legal representation is likely to produce favorable outcomes when an insurance company denies or undervalues disability compensation. Policyholders who are able to show significant evidence that their disability qualifies them to receive disability benefits are also a step ahead.

How Anderson + Wanca Can help

When lawyers from Anderson + Wanca become involved in a class action lawsuit for disability insurance, the plaintiffs’ claims are taken more seriously in court. Insurance companies know they will be held accountable for errors done in bad faith and for paying out the correct benefits.

If you are embattled in a fight for your rightful disability payments or see your long-term care insurance premiums unexpectedly spike, the class action attorneys at our practice can provide invaluable legal representation. We’ll help you obtain the compensation you deserve.

As an experienced class action law firm, Anderson + Wanca handles cases on a contingency fee basis. This means that our attorneys are only paid legal fees, typically a fixed percentage, when the outcome of the case proves to be successful.

When you seek expert legal guidance to address issues with disability insurance or long-term care insurance, choose Anderson + Wanca. We are positioned to help clients across the country resolve cases quickly and efficiently. Contact us at our Rolling Meadows, Illinois, office to schedule a consult.