I was working with a client today who purchase a new disability policy at a unisex rate. She was replacing a much more expensive policy from another company that didn’t have any discounts or unisex rates. In fact, she doubled her monthly benefit and her monthly cost was less than half of what she was paying previously.

When my client called her agent with the other company to let them know she had replaced her coverage, this agent told her that her company was the only company that paid claims. Really? It was obviously a scare tactic she was using since her allegation was completely baseless. When my client asked her to put that in writing, she was reluctant and hesitant to do so.

It is important to note where you are receiving your information and what their motivation is to provide you with some baseless facts. This agent with the other company told my client that her company was superior to all of the rest and it was the only place in the industry that claims.

The reality is that there are only a handful of carriers who provide individual disability insurance. The reason is primarily because of the requirements the reinsurers have on these companies to have a strong financial foundation to pay claims. As a result, several less strong companies pulled out of the marketplace in the late 1980’s.

Some companies will pay claims more or less favorably than others. Most often it depends on the circumstances surrounding the claim. If you are concerned by the company’s claims track record, ask for the published data about claims that have been paid. Based on my experience, most companies pay their claims and I have had positive experience with all of the main companies.