ERISA And Long Term Disability


Commonly known as ERISA, the Employee Retirement Income Security Act of 1974 was passed in order to safeguard the benefits of the employees who participate in the benefit plans of the insurance companies. Under ERISA, an employee is entitled to receive all the financial information and other information required as it will have a bearing on getting the claims and benefits. Disclosure and quick remedies as well as easy access to the Federal courts can also be initiated under ERISA. But, the problem lies in the insurance companies' refusal to such claims.

For long term disability policies, ERISA is applied to receive benefits under disability insurance law. Every sponsored long term disability insurance plan comes under the scanner of ERISA. But, the problem is that ERISA and long term disability claims can not be taken to the court together. It has been even alleged that ERISA provides an undue advantage to the insurance companies. For example, if you get insurance through your employer and suppose your claim is denied then you have to file for an appeal on your own. You can not take any legal action if you do not file any appeal, and even after that, strict rules are followed by the court to review your claim. As the courts are generally conservative, in most cases, it is the insurance company who has the upper hand.

In most of the cases, it is the back benefits which you are likely to receive and not the future damages. If you become disabled or handicapped and you claim benefits under ERISA and long term disability, you should remember every nuances of policy of your insurer company. The disabled or handicap person may suffer from different types of disabilities like physical disabilities, hearing disabilities, and alike. So, it is important that you file your claim with utmost care and at the same time take the help of an attorney.