What to Do When Your Long-Term Disability Benefits Are Suddenly Terminated

If you’ve been receiving long-term disability (LTD) benefits, having them suddenly terminated can be devastating—both financially and emotionally. Insurance companies are often quick to cut off benefits, citing medical improvement, failure to comply with policy requirements, or insufficient evidence of continued disability.

However, you have rights and don’t have to accept the termination without a fight. Here’s what our nationwide claims attorneys at Disability Insurance Law Group want you to know and the steps you can take if your LTD benefits unexpectedly stop.

Understand Why Your Benefits Were Terminated

The first step is to review the termination notice from your insurance company carefully. It should outline the specific reasons for the decision.

Common reasons for termination include:

• Alleged improvement in your condition.
• Lack of updated medical evidence.
• Surveillance or social media activity is interpreted as inconsistent with your disability.
• Failure to comply with policy requirements, such as missing medical evaluations or providing requested documentation.

Understanding the insurer’s reasoning will help determine how to proceed with your appeal.

Gather and Review Your Policy Documents

Locate your disability insurance policy and carefully review the terms and conditions, including:

• The definition of disability: “own occupation” vs. “any occupation.”
• Medical evidence requirements.
• Deadlines for submitting appeals.

Your policy is your guide to understanding the insurer’s obligations and your rights.

Request a Complete Copy of Your Claim File

Under the Employee Retirement Income Security Act (ERISA), you can request a copy of your claim file if your policy is employer-sponsored. This file contains the insurer’s internal notes, medical reviews, and any evidence they used to justify the termination. Reviewing this information is critical to building a strong appeal.

Gather Updated Medical Evidence

One of the most common reasons for benefit termination is the insurer’s claim that there is insufficient evidence of continued disability.

Work with your treating physicians to:

• Obtain detailed medical records and updated test results.
• Request written statements from your doctors addressing your limitations and why you cannot work.
• Provide documentation of ongoing treatment or therapy.

Ensure your medical records directly address the insurer’s stated reasons for termination.

Challenge Surveillance or Misinterpreted Evidence

Review it carefully if the insurer used surveillance footage, social media activity, or other evidence to justify the termination. Often, these materials are taken out of context or misinterpreted. For example, a brief activity caught on camera doesn’t necessarily prove you can work full-time.

Provide an explanation and supporting evidence, such as medical documentation, to refute the insurer’s claims.

Submit a Timely Appeal

If ERISA governs your policy, you must appeal the termination within a specific timeframe—usually 180 days. This step is crucial, as failing to appeal within the deadline may prevent you from taking further legal action.

Work with our experienced disability insurance attorneys to draft a comprehensive appeal that addresses all reasons for termination and includes supporting evidence.

Consider Legal Action If Necessary

If your appeal is denied, you may have the option to file a lawsuit against the insurance company. This is especially important if the insurer acted in bad faith by ignoring medical evidence or relying on biased reviews. Our attorneys can guide you through this process and advocate for your rights in court.

How Disability Insurance Law Group Can Help

Navigating an LTD benefits termination can be complex and overwhelming, especially when you’re already dealing with a disabling condition. At Disability Insurance Law Group, our nationwide attorneys specialize in disability insurance claims and appeals. We understand the tactics insurers use to terminate benefits and have the experience, skills, and resources to challenge their decisions effectively.

If your long-term disability benefits have been suddenly terminated, don’t wait. Call us today at 954-989-9000 or contact us online for a consultation. We’ll fight to restore your benefits and protect your financial future.