Easy Peasy - Insurance is Easy!
The May 2017 Insurance and Investment Journal tells of one Financial Advisor from Regina who, although very well insured has had trouble and is having trouble collecting benefits from his disability insurance.
With three (3) disability policies under his belt (one group and two private) purchased before his diagnosis of MS (multiple scleroses) 15 years ago you would think approval would be a no brainer! Not so says Kim Shaheen, as one of the claims has been approved, one has been outstanding for two years (all different insurers) and one has been denied. Shaheen has taken the denied claim to the Ombudservice - I wish him luck with that since I have found that service to be somewhat less than desirable.
Shaheen has fought for his own clients over the years and one key recommendation from this is to make sure you have an active advisor. It sounds simple but it is important.
On the surface of this matter my first question is - Why would an insurance company refuse a claim such as this, that seems so obvious? Without knowing all the details, I can only guess, but suffice to say that it does not look for insurance companies. I have been there, done that and absolutely refuse (the time period is in excess of 20 years) to deal with one specific insurance company for reasons that have parallels to Shaheen's situation. Now insurance companies are not in the business of giving money away but they are in the business of paying claims. Having said that, they are not in the business of treating people poorly who are already in a vulnerable state. Ask me, I will tell you which specific insurance company treats people like crap when they are most vulnerable.
One of the take aways for Shaheen was to form a group to assist in helping clients get claims approved. I call it running interference, however you term it, you need someone in your corner that has your best interest at heart. An active agent can make sure the proper paper work is done and submitted in a timely manner. And an active agent can follow up with the claims adjudicator to help the process go as smoothly as possible. I have handled numerous claims (including my own) and can tell you from experience that all insurance companies are not created equal. Knowing which company to deal with is also very important! And fighting for your client is a huge part of the process since it never cease's to amaze me how bureaucratic insurance companies can be. Frankly speaking they have nothing on CRA.
And everybody's situation is unique so do not let anyone tell you that "your situation is different or not usual". Personal service is becoming hard to get on any level for many different things. Count on your insurance agent for personal service. Make lemonade out of lemons.
James Kew is a Personal Financial Planner out of Sherwood Park, Ab.