On this site managed by an insurance agent, it is mentioned that "My personal belief is that one cannot go wrong when they buy a Non-Cancellable, own-occupation disability insurance policy."
We agree. A private, non cancellable, own occupation disability insurance policy is probably the best (and if you put things in perspective - the only way) to have a shot at having reliable coverage. Group insurance policies are dangerous because they provide the employees with a false sense of security. In some ways, if the employee knows that she does not have a disability policy, she will think twice before making major financial decisions. However, with the 'security' of the ERISA policy, she may tend towards making risky decision based on her hope that the policy will cover her if she is disabled. That leads to a very unfortunate and complex situation in the event of disability (loss of home, kids pulled out from college, no money for medical treatment etc etc). We see this routinely with disability claimants denied disability.
Friday, December 31, 2010
ABC news coverage of Cigna
After exposing Hartford denial of claims based on twisted logic, ABC details the story of disability insurance claimants from Cigna
"They did agree to a non-recorded phone call with their chief medical officer and gave us a written statement which said Cigna pays 90 percent of their claims and that a majority of their clients are satisfied."
We wonder how can one verify this claim. Are these STD or LTD claims or both? What percentage of them is ERISA and what percentage private?
"Cigna wouldn't talk to us about Kristoff's case, but the insurance trade group, America's Health Insurance Plans, said cases like hers were the exception, not the rule."
If so, then why is the insurance industry not willing to come forward and disclose the statistics of their rate of denial (particularly for group insurance policies ) on paper to their potential customers. Surely, that is a very important way that a customer can evaluate if spending her money on disability insurance is worth it.
"They did agree to a non-recorded phone call with their chief medical officer and gave us a written statement which said Cigna pays 90 percent of their claims and that a majority of their clients are satisfied."
We wonder how can one verify this claim. Are these STD or LTD claims or both? What percentage of them is ERISA and what percentage private?
"Cigna wouldn't talk to us about Kristoff's case, but the insurance trade group, America's Health Insurance Plans, said cases like hers were the exception, not the rule."
If so, then why is the insurance industry not willing to come forward and disclose the statistics of their rate of denial (particularly for group insurance policies ) on paper to their potential customers. Surely, that is a very important way that a customer can evaluate if spending her money on disability insurance is worth it.
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