If you receive regular long-term disability benefits and the insurance company offers you a lump-sum settlement, you may wonder why, and that is completely reasonable.
You are likely familiar with the way in which insurance companies operate, and that is to turn a profit. It may seem strange that an insurance company wants to offer you a large amount of money all at once, but keep in mind they have advantages of doing so. Read on to learn more about accepting a lump-sum settlement offer from a long-term disability insurance company.
Reasons Why Insurance Companies Offer Lump-Sum Settlements
The main reason why an insurance company would choose to offer a lump-sum settlement to a policyholder is to save money. Insurance companies operate as all other businesses do in the sense that they are only in business to make money.
With that in mind, it becomes clear why an insurance company would offer you a lump-sum settlement: they believe it will save them money over time. You see, the amount of money the insurance company offers you for a lump-sum settlement will likely be much lower than the total value of your long-term disability policy.
Depending on your situation, a lump-sum settlement may be a great option for you. On the other hand, it’s important to consider the amount of compensation you stand to lose as a result of accepting a lump-sum settlement.
We’re Here to Answer Your Questions
If you have any questions about the lump-sum settlement process or long-term disability benefits in general, our team can help answer them. Don’t hesitate to reach out to our skilled team right away to learn more about what we can do to help with your case.
Call Dabdoub Law Firm today at (800) 969-0488 to speak with an experienced attorney about your case.