What Are Disability Insurance Settlements?
There are two types of disability insurance settlements. A lump-sum payment may be negotiated on your behalf when you are presently receiving a monthly disability benefit payment from the insurance company. Another possible way to settle your disability claim is after a lawsuit is filed against the insurance company. These settlements are usually one-time payment by the insurance company.
If you are already receiving long-term disability benefits, you may be contacted by your disability insurance company and offered a lump-sum buyout. Or you may be interested in contacting the disability insurance company and exploring this option. A lump-sum buyout is a one-time payment to settle the disability claim.
Unlike a lump-sum buyout, where the insurance company agrees that you are disabled, this settlement option only arises because you have filed a lawsuit. This means your long-term disability benefits have been denied and you have exhausted your appeal rights. While not always the best option for every disability case, settling your disability lawsuit is one option to consider.
Settling your disability case may be a safer option because payment of monthly disability benefits are not guaranteed. One reason to consider a settlement is the certainty of a one-time payment. Another reason is to completely cut off your relationship with the disability insurance company.
Although disability insurance companies are not required to offer settlements, Dabdoub Law Firm has successfully negotiated these on behalf of its disabled clients. We have obtained millions of dollars on behalf of our clients through settlements.