Policyholders of Unum Group and its subsidiaries may soon face heightened challenges as reports emerge of long-term disability (LTD) claims being denied or terminated. Industry analysts have connected these actions to Unum’s financial performance, raising concerns for individuals holding older LTD policies with higher monthly benefits.
Unum’s second-quarter earnings report fell short of analyst expectations, reflecting a significant decline in profitability due to rising disability and life insurance claim costs. The company also lowered its full-year profitability guidance. Barron’s, a leading financial publication, described Unum’s outlook as having “poor growth and fundamentals just average.” Similar underperformance was reported in the first quarter.
Historically, downturns in stock prices have been linked with layoffs. At Unum, employee compensation has long been tied to performance metrics that reportedly include the number of claims denied or terminated. For claims adjusters and managers, performance reviews are influenced by the handling of claims, leading critics to argue that cost containment often takes priority over policyholder support.
Recent litigation has underscored these concerns. Newfield Law Group successfully appealed a wrongful termination of benefits for a McKinsey consultant, whose policy contained generous monthly benefits and “any occupation” provisions. According to the firm, claimants with benefits of $10,000 or more per month appear especially vulnerable to heightened scrutiny.
Unum has previously faced legal action over its claims practices, including a class-action lawsuit and a widely publicized investigative report by 60 Minutes. While those actions forced reforms, attorneys assert that many of the same practices persist today.
Jason Newfield, managing attorney at Newfield Law Group, stated:
“Unum remains under the microscope because of the volume of denied or terminated claims we continue to see. Policyholders should be aware of surveillance practices, requests for additional testing, and aggressive reviews of medical records. Our recent cases demonstrate that vigilance and proactive legal representation can make a decisive difference.”
The firm also noted common areas of risk:
- Surveillance: Routine monitoring of claimants’ daily activities.
- Social Media: Posts and tags by family or friends that may be used as evidence of ability to work.
- Medical Appointments: Gaps in treatment history cited as justification for claim termination.
While Unum is not alone in linking corporate profits to LTD claim outcomes, the growing number of disputes indicates ongoing turbulence for policyholders.
Newfield Law Group continues to represent claimants nationwide in disputes with Unum and other disability insurers. The firm reports that policyholders with high-value LTD benefits are contacting their offices at increasing rates, concerned about protecting their claims in the current environment.
UNUM Policyholders, Be Prepared for Long-Term Disability Claims to be Terminated
If you have a long-term disability insurance policy with Unum or any of its many subsidiaries, don’t be surprised if your claim is terminated unexpectedly or if your application for benefits is denied. The next few months are going to be rocky for Unum policyholders, especially those with older LTD policies with high monthly payments.
What’s behind the scenes? Stock prices and poor performance on earnings reports.
Unum’s second-quarter earnings report was disappointing, as the company missed analyst expectations for adjusted earnings per share and reported a significant decline in profitability due to higher disability and life insurance claim costs. The lowered full-year profitability guidance didn’t help. Barron’s, a leading financial publication, went so far as to say “growth is poor and fundamentals just average.” The company also missed its first-quarter earnings expectations.
When stocks decline, layoffs often follow, and at Unum, where employee compensation is tied to performance, the pressure is on. For claims adjusters, people who review medical records, and people on the management level, performance is measured in how many initial claims are denied and how many people on claims have their disability claims terminated. For employees who want to keep their jobs, the mission is straightforward: deny, delay, terminate.
Unum seems to be targeting McKinsey policyholders, based on the number of headlines in the media. Newfield Law Group recently shared the news of our successful appeal for a McKinsey consultant because of wrongful termination by Unum. The McKinsey policies were purchased years ago and featured generous monthly benefits, as per the salaries of the McKinsey professionals, as well as “any occupation” provisions.
People who are currently on claim with monthly benefits of $10,000 or higher need to be particularly mindful right now. Unum is looking for reasons to terminate these expensive claims. This is the same company that was the subject of a massive class action lawsuit and investigative report by 60 Minutes for a corporate culture hell-bent on denying claims. Despite the class action lawsuit, which was followed by years of lawsuits by individual policyowners, little has changed for this company’s operations.
What can you do if you or a loved one is on claim with Unum?
Be aware that your claim may be wrongfully terminated. If you receive any communications from Unum about undergoing additional medical tests or a request for additional materials, you should contact Jason Newfield to discuss your claim.
Be careful about activities outside of your home. Surveillance has never been easier to conduct, and it’s become a standard practice for Unum and other LTD companies. If you go out regularly to doctor’s appointments, therapy sessions, etc., start tracking your activities to prepare for a challenge.
Steer clear of social media posts. Something as innocuous as attending a neighbor’s backyard barbecue can be used as proof of the ability to leave your home for an extended period of time, which will be equated with your ability to work. If your family and friends post on social media, make sure you’re not in their photos or tagged. The LTD insurance community started monitoring social media years ago, and the ability to search for activity using AI has only become easier.
Keep up with your medical appointments. Missing an appointment because you aren’t well enough to go is one thing, but if there are significant gaps in your treatments, they will be used as reasons to delve deeper into your claim. We have successfully obtained disability benefits for people whose care has lapsed because there wasn’t any medical need for them to attend their appointments, but it’s not always a winning battle. Your best defense of your LTD claim, particularly with an insurance company that’s more than motivated to deny claims, is to go to your appointments and schedule enough appointments to support your claim. If you have questions about this, call Jason Newfield to talk about how strategic appointments matter to your health and your claim.
Unum is far from the only long-term disability insurance company tying corporate profits to costs of LTD claims, but the number of cases making their way to court and the calls to Newfield Law Group tell us there are rough waters ahead for Unum policyowners.
If you have an Unum policy and fall into the high benefit category, we invite you to call Jason Newfield and discuss your situation. Forewarned is forearmed, and he’ll be able to speak with you about what you can expect and how to protect your claim.
