What is a Lump-Sum Settlement for Long-Term Disability Benefits?

At some point during the claim process, the insurance company may offer a lump-sum payment. This is a one-time payment made to buyout the entire policy.

When can I expect an offer for a lump-sum settlement?

Lump-sum payments may be offered in the following scenarios:

First, insurance companies may offer a lump-sum buyout while a person continues to receive monthly long-term disability benefits.

People who are receiving monthly benefits may be approached by the insurance company with a potential buyout of the policy. In this situation, there is no dispute as to whether the individual is disabled. Still, the insurance company may determine it is in its best interest to buyout the policy.

There are certainly advantages and disadvantages to agreeing to a lump-sum in this situation. Please give us a call to speak with one of our experienced disability lawyers to discuss whether the offer made by the insurance is company is fair.

Second, insurance companies may offer a lump-settlement after a lawsuit has been filed against them.

Following the denial of long-term disability benefits and all appeals, people can file a lawsuit against the insurance company. Once a lawsuit is filed, the insurance company may offer a lump-sum settlement in order to get rid of the case. Indeed, a majority of cases result in a lump-sum payment to resolve the matter.

Third, insurance companies may offer a lump-sum settlement after a denial of long-term disability benefits, but before a lawsuit is filed.

Some insurance companies are willing to offer lump-sum payments after denying benefits but before the claimant files a lawsuit. This is not common. Give our experienced attorneys a call to see if this option would be available to you.

Importance of Hiring an Attorney

It is important to hire an attorney to represent you in negotiations for a lump-sum. Whenever you agree to a one-time payment, you are forever releasing the insurance company from all liability. You will never again receive payment from the insurance company. You can no longer sue them. You can no longer have coverage from that insurance company.

This law firm has always focused only on disability insurance law. As a result, this firm has helped many people across the nation negotiate a lump-sum settlement. Call Dabdoub Law Firm to get experienced disability lawyers on your side.

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.

Categories:

Let Dabdoub Law Firm Fight for the Disability Benefits
You Rightfully Deserve.

    • Please enter your name.
    • This isn't a valid phone number.
      Please enter your phone number.
    • This isn't a valid email address.
      Please enter your email address.
    • Please enter your age.
    • Please enter your occupation.
    • Please enter your disability insurance Company.
    • Please make a selection.
    • Please make a selection.
    • Please enter a message.
Request a Free Case Evaluation