In most cases, disability insurance benefits are paid on a monthly basis. Each month you will receive a check. However, in some instances, an insurance company may offer to pay you one lump sum settlement instead of monthly benefits. Or, you may reach out to the insurance company if this is something you are interested in.
What are the Advantages?
The biggest advantage is that instead of receiving a smaller check every month, you will receive one larger check. This is often an attractive idea.
Another advantage is that once you receive the settlement check, you will not hear from your disability insurance company again. No more sending updated doctor notes, no more completing forms, no more proving your disability.
The last advantage is that because you are being paid benefits when discussing the lump sum settlement, the insurance company has accepted liability and your disability is not in dispute. Therefore, the settlement offer will likely be higher than a settlement offer you may get if your disability were in dispute and your case in litigation.
What are the Disadvantages?
While a larger check and no more letters from the insurance company sound great, there are some disadvantages. The biggest disadvantage is that the large check will still be less than if you were to be paid out every month for the full term of your policy, usually until age 65 or retirement age. After all, the lump sum is still a settlement that is open to negotiation.
Should I accept the lump sum settlement?
Assuming the settlement offer is right and you are content with it, then the advantages clearly outweigh the disadvantages. It will be a clean break between you and the insurance company, and there is no more fear that it will try to terminate your benefits.
Disability Insurance Companies Have Lawyers. Shouldn’t You?
Because this law firm was created to focus on disability insurance, we have developed an expertise in this complex area of the law.
Our expertise in long-term disability claims means our clients have the backing of a law firm that has:
1. Attorneys who are experts in disability claims;
2. Fought all major disability insurance companies and know their tactics;
3. A track record of success;
4. Won major disability lawsuits that created good law; and
5. Recovered millions of dollars in disability benefits.
All our lawyers commit every day of their legal career to helping people get disability benefits from UNUM, MetLife, Prudential, Northwestern Mutual, Hartford, CIGNA, and others.
Because federal law applies to most disability insurance claims, we do not have to be located in your state to help. We help clients nationwide.
Call to get experienced disability lawyers on your side with:
- Submitting a disability insurance claim;
- Appealing a short-term or long-term disability denial;
- Negotiating a lump-sum settlement; or
- Filing a lawsuit against your disability insurance company.
Call Dabdoub Law Firm today at (800) 969-0488 for a free consultation with an experienced disability attorney. Pay no fees or costs unless you get paid.
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