Short-term disability helps many people in need. It acts as a temporary aid for people who need to take time off from their jobs due to an illness or injury. People who qualify for short-term disability benefits can receive financial help for short periods of time — i.e., between six and 12 months. But unfortunately, not everyone qualifies. In fact, there are many reasons short-term disability can be denied.
Common Reasons Why Short-Term Disability Can Be Denied
According to Simply Insured, approximately 40% of short-term disability applications are denied. But why?
When you apply for short-term disability insurance, the insurer must review your application for any discrepancies in what you provided. If an application has too many mistakes or insufficient information, it can be tossed.
Another common reason short-term disability can be denied is that your illness or injury doesn’t qualify for financial aid. Short-term disability insurance plans are designed to cover only certain conditions, such as back pain. But if you have a more severe and chronic condition, you may be asked to apply for long-term disability instead.
Other Reasons Short-Term Disability Can Be Denied
Short-term disability is a godsend to people in need of financial assistance. But unfortunately, not everyone is eligible to receive it. To learn why, here are 10 reasons why short-term disability can be denied:
1. Insufficient Medical Evidence
To receive short-term disability, you must prove that you can’t work due to a medical condition. Without the proper evidence, your request to receive short-term disability benefits could be denied.
2. Pre-existing Conditions
If you forget to disclose a pre-existing medical condition, the insurance company could close your claim due to misleading or inaccurate information.
3. Lack Of Medical Treatment
If you refuse medical care — i.e., not adhering to an existing treatment plan or avoiding medical attention — the insurance company could argue that your condition is not serious enough to warrant disability benefits. And as a result, they could close your claim.
4. Inadequate Documentation
When filing a claim, always fill out every required field to the best of your knowledge to avoid a claim denial based on a lack of or inaccurate information.
5. Short Waiting Period
Certain policies require you to wait before you can receive your benefits. If your disability is projected to be shorter than this waiting period, your claim may be denied.
6. Not Meeting The Definition of Disability
Many people pretend to have a disability to receive the benefits short-term disability comes with. To avoid this, insurance companies create policies that clearly define what constitutes a disability. And unfortunately, if your condition doesn’t meet this definition, they could deny your claim.
Pretending to be someone you’re not is the quickest way to guarantee your disability claim is denied. To avoid this, remember to provide accurate and up-to-date information to ensure your claim is processed.
8. Failure to Cooperate
During the application process, there may be times when the insurance company requests more information from you. This can include asking you to complete a medical exam or requesting proof of income. Refusing to comply with their requests can result in a claim denial.
9. Excluded Conditions
Not every medical condition qualifies for disability benefits. If your condition is one of the excluded conditions outlined in an insurance policy, your claim could be denied.
10. Inconsistent Information
Making mistakes on your application is expected. But if it happens too much, the insurance company could flag your claim for inconsistencies, leading to a denial.