If my disability insurance claim denial is reversed will I receive interest?

The answer to this question depends on the level in which you win your disability case and the type of disability policy you have. Under most group (ERISA) and individual disability insurance policies you will not receive interest unless you win your case prior to the filing of a lawsuit. However, there are some disability companies that will pay interest if disability benefits have been delayed or wrongfully denied prior to filing a lawsuit.

If you win your disability case after the filing a lawsuit and entry of judgment by a court, then the Judge will have the discretion to issue an award of interest for the period of time that you have not received any benefits. The amount of interest you are entitled to receive is usually discretionary with the Judge, but the applicable rules to determine an award of interest and the rate to be used are different in State and Federal Courts. The state court interest rates are usually higher than the federal court interest rates. In some long term disability insurance policies there is language in the policy which specifically states the amount of interest that will be paid if disability benefits are delayed or wrongfully denied.

Read our article on pre-judgment interest to learn more.

Leave a comment or ask us a question

There are 2 comments

  • Rocky,

    Unfortunately, ERISA laws do not require payment of attorney fees or interest at the Appeal level.

    Gregory DellFeb 4, 2013  #2

  • I was denied benifits and had to hire a disability attorney, we won the appeal; I got no interest nor attorney fees. Is there jargon to receive both?

    RockyFeb 1, 2013  #1

FAQ

Do you work in my state?

Yes. We are a national disability insurance law firm that is available to represent you regardless of where you live in the United States. We have partner lawyers in every state and we have filed lawsuits in most federal courts nationwide. Our disability lawyers represent disability claimants at all stages of a claim for disability insurance benefits. There is nothing that our lawyers have not seen in the disability insurance world.

What are your fees?

Since we represent disability insurance claimants at different stages of a disability insurance claim we offer a variety of different fee options. We understand that claimants living on disability insurance benefits have a limited source of income; therefore we always try to work with the claimant to make our attorney fees as affordable as possible.

The three available fee options are a contingency fee agreement (no attorney fee or cost unless we make a recovery), hourly fee or fixed flat rate.

In every case we provide each client with a written fee agreement detailing the terms and conditions. We always offer a free initial phone consultation and we appreciate the opportunity to work with you in obtaining payment of your disability insurance benefits.

Do I have to come to your office to work with your law firm?

No. For purposes of efficiency and to reduce expenses for our clients we have found that 99% of our clients prefer to communicate via telephone, e-mail, fax, GoToMeeting.com sessions, or Skype. If you prefer an initial in-person meeting please let us know. A disability company will never require you to come to their office and similarly we are set up so that we handle your entire claim without the need for you to come to our office.

How can I contact you?

When you call us during normal business hours you will immediately speak with a disability attorney. We can be reached at 800-682-8331 or by email. Lawyer and staff must return all client calls same day. Client emails are usually replied to within the same business day and seem to be the preferred and most efficient method of communication for most clients.

Reviews   *****

Michael C. (Virginia)

Greg Dell and his assistant Anneli have been extremely responsive and helpful, not only our initial consultations, but in follow-ups 1 and 2 years later with the insurance company to ensure that they comply with their agreements (which they did), as well as a separate and only slightly-related inquiry about our health insurance. I always hear back from them very quickly, which is rare and greatly appreciated.

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