If you are receiving long-term disability payments, the insurance company may have approached you about accepting a lump sum payout of your benefits. You may have read about lump-sum settlements and thought this might be a good option in your case. Regardless of whether the insurance company has approached you or you want to make a settlement offer to the insurance company, you need a New York long term disability insurance claims lawyer to help you with the negotiations.
A lump sum long term disability settlement or buyout is one payment that settles all future claims against the insurance policy. For one payment, you release the insurance company from any future liability. In other words, when you accept the lump sum payment, the insurance policy is terminated, and the company will not pay any more money to you for any reason. Even if your condition becomes worse, you develop another disabling condition, or your disability extends longer than you anticipated, the company will not be liable for any future benefits or payments once you accept a lump sum buyout.
Of course, the insurance company benefits by settling for a lump sum payment because it no longer is liable for any benefits. However, some insurance companies do not offer lump sum settlements. For the companies who are willing to offer lump sumlong term disability payments, each company has its own criteria and steps for approving a lump sum settlement.
Deciding whether to accept a lump sum payment can be difficult. You want to consult with a New York long term disability insurance claims lawyer who can analyze your case to determine what is in your best interests. Some of the benefits of accepting a lump sum buyout of your disability policy include:
Settling your long term disability claim may not be in your best interest. The insurance company does not agree to a settlement because it is best for you. The company agrees to a lump sum buyout because it is best for the company. The insurance company discounts the settlement so that it can save money. In other words, you will receive less by accepting a buyout than you would if you continue to receive monthly disability payments.
A company may not be willing to settle your long-term disability claim if your condition is terminal. It may also not be willing to offer a buyout until after you begin receiving Social Security benefits so that it can offset the settlement. Until the company feels that it is in their best interest and they do not see any way of denying your benefits in the future, most insurance companies are not willing to settle long term disability claims for an amount that is fair for the claimants.
To determine if a buyout of your long term disability benefits is in your best interest, call our New York long term disability insurance claims lawyers to discuss your specific case. Because each case is unique, an attorney must consider all relevant factors before advising whether a lump sum buyout is in the client’s best interest. We can help you decide what is best for you and negotiate with the insurance company for a high payout if you want to pursue a lump sum settlement.