Principal Financial Group sells a large number of individual long-term disability insurance policies to doctors, dentists, and other professionals through a national network of financial advisors and insurance brokers. Principal also sells group or ERISA LTD policies to companies, which offer the policies to employees as part of their benefits package. The employee pays for the policy through a payroll deduction.
The individual or private disability insurance policies sold to medical professionals, executives, and high-income wage earners are expensive, but they are an excellent way to protect the investment the person has made in building their career to create a high income stream. The problem comes when high-income earners file a claim for disability benefits, which is costly for the insurance company.
Consider a dentist who buys a private policy to protect their income. Dentists often have shoulder, neck, hand, or back injuries. A 45-year-old dentist may keep working for a few years and try to work through their orthopedic pain, but at a certain point, they can’t work without risking permanent damage. The now 50-year-old dentist files a claim for an $8,000 monthly benefit. The claim could cost Principal, New York Life, or any of the insurance companies selling Long Term Disability Insurance, at least $1.4 million or twice that amount, over the life of the policy. Multiply one dentist by the tens of thousands of policies sold. The exposure for the insurance company is enormous – if every claim were to be paid. One of the world’s largest financial management and insurance companies, principal benefits from having an enormous number of lawyers, accountants, actuaries, and economists who ensure the company is well-protected from losses stemming from too many disability claims being paid.
Fighting a denied Principal long-term disability insurance claim on your own is risky. We invite you to call our office at 877-583-2524 to discuss your LTD claim, whether it is a private policy or an ERISA group policy. The denial may have occurred because of missing medical reports or failing to check the right box when going through the online application. But more likely, it was denied because the exposure is too great.
Frankel & Newfield is often contacted when Principal has terminated disability insurance benefits after paying for a certain period of time. There may have been some requests for additional medical records, or a required IME (Independent Medical Examination), but nothing occurred that would lead the claimant to think their claim was in jeopardy. Until the termination letter arrives. Simply put, fighting a denied or terminated claim against Principal by yourself is a mistake. Our partners have devoted their legal careers to fighting disability insurance companies. To win, you would have to be fully conversant with the regulations concerning ERISA (Employee Retirement Income Security Act) and the strict procedures on the administrative hearings used to fight denials. Or, you would have to be experienced and knowledgeable concerning contracts law, years of case law concerning private disability policies, and knowledgeable about insurance law. What we do is not easy. We represent Principal disability insurance claimants during what is often the worst time of their lives – when they are facing not only the challenges of their disability but also the fear of the economic losses they may face if their disability benefits are not reinstated.
If you receive a disability claim denial letter from Principal Financial Group, do not delay in contacting an experienced disability insurance attorney. The letter will explain why your claim was denied and give a very cursory explanation of how you may appeal the decision. Claimants often read the letter and set it aside, thinking they have time to deal with the denial. Failing to respond correctly in a timely manner to the denial letter can, and very often does, result in the permanent loss of disability benefits. You must act quickly.
Many clients engage Frankel & Newfield to handle the claim from the beginning. This will help to shape the claim properly and develop all necessary support and proof of loss, making the claim process smoother. Many times, people do not consider this in advance, and only later have remorse for lacking such foresight. This work at the beginning often results in clean, approved claims. An experienced disability insurance attorney will provide you with a free consultation, as we do at Frankel & Newfield. We will ask you about your disability claim and your policy. We will give you our honest opinion as to what has to happen for you to reinstate your claim. If you have not gone for medical treatment for your disability on a regular basis, we will tell you that’s why your claim is at risk. If you have been working on a part-time basis and filed for full-time disability, we will explain how this impacts your claim. The phone call to discuss your case is a no-risk, no-obligation conversation that could make all the difference to you and your family. Call our office at 877-583-2524 to discuss your LTD claim, whether it is a private policy or an ERISA group policy.
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