Long-term disability claims are commonly denied due to insufficient medical evidence, policy exclusions or limitations, non-compliance with treatment plans, issues with the claim form, surveillance evidence, and pre-existing condition clauses.
The taxability of long-term disability benefits largely depends on who and when the premiums for the disability insurance are paid. The benefits are typically not taxed if the premiums were paid with after-tax dollars. However, the benefits are likely taxable if your employer paid the premiums or they were paid with pre-tax dollars.
To appeal a denied long-term disability claim, gather all relevant medical documents, understand the policy’s specific grounds for denial, consult a legal expert, and submit a comprehensive appeal by the deadline.