Disability Insurance Attorney Cesar Gavidia discusses a common question asked by every person that files a short or long term disability insurance claim.
A disability insurance claimant should always continue to pay premiums until such time that their disability insurance carrier advises that they do not need to do so. The reason to continue paying is that if your policy lapses and the insurance company denies your claim, then you no longer have any coverage. Alternatively, if you have a private disability insurance policy and your claim is denied, you still maintain your disability coverage as long as you continue to pay premiums.
In most ERISA governed group disability policies as soon as you are no longer employed your disability coverage terminates, therefore there is no premium to pay unless you exercise a right to convert the policy. Some group policies offer the benefit of converting the group policy to an individual disability insurance policy when you leave your employer.
I often get calls or get asked by clients if they should stop paying their insurance premiums even though their claim hasn’t yet been approved or the claim has been denied. The last thing you should do, until the insurance company advises you in writing that you can stop paying your insurance premiums, is stop paying them. You should continue to pay them as long as you can afford to and as long as you can because if you stop paying those premiums, the policy will cease to be enforced. So if they’re reviewing your claim or your claim has been denied, God forbid you’re walking across the street and you get into some sort of accident and you are in the hospital or unable to do anything at all or unable to do your occupation based on another condition, then you no longer can file a claim at that time; your policy is not in effect, you can’t do anything. You should continue to pay those premiums, again, until your insurance company has advised you in writing to stop paying your insurance premiums that they’re being placed on waivers. So if you have any questions regarding your payment of your insurance premiums or the progress of your disability claim with your insurance company, please don’t hesitate to contact us.