If you are currently receiving long-term disability benefits you may be contacted by the disability insurance company and offered a buyout, or you may want to reach out to them and explore this option. A lump-sum buyout is a one-time payment to settle the disability claim.
While disability insurance companies are not required to offer one, it is possible to get a lump sum buyout of your claim depending on the circumstances.
There are general factors that insurance companies consider when deciding whether to offer a lump sum buyout. These include:
- Your age;
- Your disabling condition;
- Whether you have been approved for any occupation (if applicable);
- Whether you are approved for Social Security disability benefits (if applicable);
- Your morbidity rating (how chronic your conditions are); and
- Your mortality rating (the likelihood of death).
Lumpsum buyouts result in the disability insurance company paying out a percentage Settling your long-term disability case through a lumpsum buyout can be a safer option for you because your monthly disability payments are not guaranteed. Disability insurance carriers find ways to terminate benefits, cutting off disabled claimants from much-needed income. Reasons to consider exploring a lumpsum buyout include the certainty of a one-time payment as well as forever cutting ties with your disability insurance company.
Our long-term disability attorneys have successfully negotiated lump-sum buyouts on behalf of clients with most major disability insurance companies including:
Call for a free consultation with a disability attorney. We can explain your options so you can make a decision that is right for you.