Many people work very hard for many years and wisely put money away for retirement in a 401(k) provided by their employer. However, when medical problems arise and they cannot continue working, they often deplete their 401(k) unnecessarily.
A construction superintendent was highly valued, long-time employee. His knees and lower back started causing him problems. Fortunately, his job provided good benefits, including long term disability benefits, life insurance, and a 401(k). When his doctor told him he had to stop working, he filed a claim for long term disability benefits.
The long-term disability insurance company denied his claim. He hired our firm to pursue his case. In the meantime, he lived off his 401(k) account. The account dwindled in just a few months, as a large part of his withdrawals were withheld for taxes and penalties. Meanwhile, we aggressively pursued his claim through an appeal with the company and when it was effectively denied, with a lawsuit.
Shortly after we filed the lawsuit (and before the 401(k) plan was exhausted), the insurer reversed its prior decision and our construction superintendent was awarded his long-overdue long-term disability benefits.
If a long-term disability claim is denied, don't sit on it. A “safety net” such as a 401(k) may not last as long as you think. The sooner we get going, the quicker the resolution. Let us help.