This article is about AIG Disability Insurance, which provides financial protection to policyholders who are unable to work due to a disabling injury or illness.
AIG offers both short-term and long-term disability insurance coverage, with flexibility in terms of coverage and premiums.
The article discusses the benefits and restrictions of both types of policies and offers guidance on how to submit a claim, as well as what to do if a claim is delayed or denied.
It also provides background information on AIG as a company, including its history and the types of products it offers.
AIG Disability Insurance
AIG disability insurance provides financial protection to policyholders who are unable to work due to a disabling injury or illness.
This type of insurance ensures that policyholders receive a percentage of their income, allowing them to pay bills and maintain their standard of living while they recover.
AIG disability insurance policies vary in terms of coverage and premiums, allowing policyholders to select a plan that fits their needs and budget.
The policies may include features such as partial disability benefits, rehabilitation benefits, and residual disability benefits.
One of the benefits of AIG disability insurance is the flexibility it provides.
Policyholders can choose between short-term or long-term disability coverage, and they can select from a variety of waiting periods before benefits begin.
This flexibility allows policyholders to tailor their coverage to their specific needs.
Overall, AIG disability insurance provides peace of mind to policyholders, knowing that they have a financial safety net in place in the event of a disabling injury or illness.
Background of AIG
AIG, a multinational insurance company, boasts 88 million customers in 130 countries worldwide.
Cornelius Vander Starr founded the company in Shanghai, China, in 1919, and its first U.S. office opened in 1926.
Today, AIG has its headquarters in New York, New York, and employs 116,000 people, making it the 42nd largest company globally.
The company operates three main branches and offers a full range of product options for both individuals and businesses.
What does AIG disability insurance offer?
AIG provides two disability insurance options to workers.
The first is short-term disability insurance, which covers injuries or conditions that last for brief periods after an elimination period.
Employers offer this coverage through payroll deductions.
During this period, the policy replaces a portion of the individual’s income.
The second option is long-term disability insurance.
It is a voluntary coverage that commences following the elimination period.
The duration of the policy’s payment varies, depending on the individual’s preferences at the time of purchase.
Some individuals choose to purchase both types of insurance.
They can use short-term disability insurance to cover the elimination period for their long-term disability coverage, after which their long-term benefits take effect.
1. AIG short-term disability insurance
AIG provides short-term disability insurance that is employer-funded.
This insurance helps employees pay for their daily expenses if they fall ill or become disabled due to an injury.
If an employer offers AIG’s short-term disability insurance, employees should carefully review their policy to ensure they understand all the terms and conditions.
Before your short-term disability insurance can be active;
- You must go through a waiting period. Your employer determines this waiting period and it typically ranges from 30-90 days. Confirm with your employer to know the exact duration.
- You must pass elimination period before receiving benefits. This is the number of consecutive days that you must remain disabled before benefits can be paid out. The exact duration is specified in your policy and is usually between 7-14 days.
- To qualify for benefits, your disability must meet AIG’s definition of an eligible disability. You need to read your policy to understand how the insurance company defines disability or illness.
AIG’s short-term disability policy aims to aid people in covering daily expenses while they’re unable to work.
However, the policy contains several restrictions that may require individuals to navigate numerous obstacles before receiving financial aid.
2. AIG long-term disability insurance
AIG offers long-term disability insurance that is employer-funded.
This insurance is designed to help employees pay bills and cover expenses for a longer duration than short-term disability insurance.
AIG pays out long-term disability insurance on a monthly basis, while short-term disability insurance is paid weekly.
Each AIG long-term disability plan is customized based on the number of full-time employees a company has.
Although the benefit percentage used to calculate the amount of compensation is typically the same for both short-term and long-term disability, there is a difference in how the amount is determined.
The short-term plan calculates the percentage of weekly earnings, while the long-term plan calculates the percentage of monthly earnings.
AIG’s long-term disability insurance has the same restrictions as their short-term disability insurance.
What you need to know about AIG claims
AIG claims to protect income when one is unable to work. However, policies have many restrictions, making it unlikely that income will be protected promptly, if at all.
While AIG doesn’t reject all claims, they often prolong the process, requiring policyholders to complete endless paperwork.
This delay can even occur after approving a claim. Additionally, some claims are flat-out denied for unreasonable reasons.
How to submit a claim to AIG
When you become eligible for benefits, an online portal should be available for you to register, which stores information about your plan and forms for filing a disability claim.
To avoid any delays in receiving your benefits, it is recommended that you double-check the forms to ensure that they have the correct year on them, as AIG may not keep their literature up-to-date.
The forms required to submit a claim usually include your statement, your employer’s statement, and your attending physician’s statement.
Although emailing the forms to AIG may be an option, they have historically preferred that the forms be either faxed or mailed to them.
What to do if AIG delays your claim
If AIG continuously asks for various paperwork and delays your claim by not giving you a response, it may be necessary to involve a lawyer.
This is because handling delays with other insurance companies is usually easier, and you only need to contact your case manager.
However, AIG is not the same, and involving an experienced disability lawyer may be your best option to get the benefits you need and deserve.
What to do if AIG denies your claim
If AIG denies your short- or long-term disability benefits, they will notify you by mail.
The notice will explain why your claim was denied and provide instructions for filing an appeal.
You can request a copy of your claim file from AIG, which contains all the evidence used to deny your claim.
Make sure to meet the deadline for filing your appeal, or you risk losing out on potential benefits for your disability.
How to appeal a denial from AIG
To prepare for an appeal, seek the assistance of experienced lawyers who will review your file and letter.
The lawyer will ask you to undergo additional exams and tests to gather favorable evidence for your claim.
AIG requires completion of an internal appeals process before filing a lawsuit. Your attorney will gather sufficient evidence to increase your chances of success on your appeal.
Summary
The article provides an overview of AIG Disability Insurance, which offers financial protection to policyholders who are unable to work due to a disabling injury or illness.
The company offers both short-term and long-term disability insurance coverage with flexibility in terms of coverage and premiums. T
he article also provides background information on AIG as a company and the types of products it offers.
It discusses the benefits and restrictions of both types of policies and offers guidance on how to submit a claim, as well as what to do if a claim is delayed or denied.
Nick Greenlight is an experienced individual in the financial sector, with knowledge spanning from investment management to income tax preparation.
He has been writing informative essays on personal finance for over a decade and holds several credentials.