Even if you win your appeal after your long-term disability benefits claim is initially denied, the battle may not be over. Your insurance company may attempt to reduce what is owed to you by offering a settlement or buyout.
It may sound tempting to accept a lump-sum payment, but it may not be in your best interest. Our ERISA case lawyers can help with that evaluation.
For example, if you are scheduled to receive $100,000 over your lifetime, the insurance company may offer a buyout of $30,000 to be paid immediately. You may be tempted to accept the payout because you need the cash (maybe to do some remodeling on your home or to buy a handicapped-modified van) rather than wait for a lifetime of relatively small payments. But you may not have to.
You may also want to accept a buyout because of the “bird in the hand” principle. You may worry that the insurance company will find some excuse in the future to stop making payments, and you may believe that accepting the $30,000 upfront can eliminate worries about that possibility. But there may be other things to consider.
Our attorneys advise clients on the factors and fairness of insurance company buyout settlement offers. Our attorneys use analytical tools that offer clients an objective analysis of the projected lifetime payments versus a buyout settlement offer.
In addition to mathematical calculations, we also review other factors — such as evidence and other issues that the adjuster may consider.
Each case is unique. You should not draw your own conclusions or make a decision without legal advice. Should you accept lump sum benefits or hold out for a lifetime of smaller payments? Our experienced ERISA disability attorneys and long-term disability lawyers can evaluate long-term disability buyouts.
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