It may feel like a blessing to have the long-term disability insurance company offer you a lump-sum settlement for your benefits, but it’s important to keep in mind that this is a big decision to make and not one you should take lightly.
If the insurance company offers a buyout of your benefits, it is important to keep the following three factors in mind:
#1 - The present value of your future benefits.
If the long-term disability insurance company offers you a lump-sum settlement for the remainder of your benefits, it is critical that you carefully calculate what your benefits are worth.
You see, insurance companies typically only offer benefit buyouts if they believe it will save them money in the long run. This means they may try to offer you a settlement that is less than the full value of your benefits.
#2 - Whether you can make the money last throughout the entirety of your claim.
If you have poor money management skills, it may not be the best idea to accept a lump-sum settlement for your benefits. After all, medical expenses can be very costly, and the last thing you want to do is go without critical medical care because you’ve run out of money.
#3 - The tax implications of a lump-sum settlement.
Not all lump-sum settlements are taxable, but if yours is, then the value of your benefits may be significantly reduced by the taxes you must pay. It is critical that you discuss these implications with an attorney before accepting a lump-sum settlement.
Lawyers with Expertise in Disability Insurance Claims
This law firm has always focused only on disability insurance law.
Because we specialize in long term disability, our clients get the benefit of:
- Having an attorney who is an expert in long term disability claims;
- Having an attorney who has experience with every major disability insurance company;
- Being backed by a law firm that has a proven track record of winning tough disability lawsuits.
Call Dabdoub Law Firm to get experienced disability lawyers on your side.
We can help with:
- Submitting a disability insurance claim,
- Appealing a long-term disability denial,
- Negotiating a lump-sum settlement, and
- Filing a lawsuit against your disability insurance company.
The firm represents clients nationwide with disability claims governed by federal law, even if we are not located in your state.
Call to speak with an experienced disability attorney. Pay no fees or costs unless you get paid.
Call Dabdoub Law Firm today at (800) 969-0488 to speak with an experienced attorney about your case.
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