People buy homeowners’ insurance mainly for peace of mind. They buy it because they want to know that if their home is destroyed by a fire or a natural disaster, they will have the financial resources needed to rebound from that event.
Unfortunately, many homeowners’ insurance companies seem to be far better at collecting premiums than they are at providing benefits to people with valid claims.
We know how disruptive to a person’s life a physical injury can be. The medical bills, lost wages, pain and suffering, as well as the difficulty performing your simple daily tasks, can put a huge strain on an injured person’s life.
The Employee Retirement Income Security Act (ERISA) of 1974 governs most employer-sponsored or employer-purchased life insurance policies. Under this federal law, insurance companies that issue these policies have very little incentive to pay benefits, because the law is tilted heavily in their favor and they face no real penalties for denying claims.