When long-term disability insurance companies choose to offer claimants lump-sum settlements, they typically do so because they have something to gain as a result.
It’s important to keep in mind that long-term disability insurance companies will usually offer a lump-sum settlement when they believe it can save them money in the long run by paying you less compensation than you would receive if you were to continue getting monthly payments.
Read on to learn more about how lump-sum settlements are calculated by long-term disability insurance companies.
How Lump-Sum Settlements are Calculated
Typically, long-term disability insurance companies will determine what they believe is the present value of your future benefits. They usually try to keep inflation in mind so that as the dollar shrinks in value, you will still have enough money to pay for the expenses related to your disability.
However, it is critical to consider that the insurance company may determine a present value of your future benefits that is different than the amount you calculate. This is why it is crucial that you diligently go over your claim and ensure the present value of your future benefits is enough to cover the costs of your disability for the full length of your claim.
Before accepting a lump-sum settlement from the insurance company, it’s in your best interest to go over the insurance company’s calculations with a skilled long-term disability attorney to make sure you will receive the full value of your claim.
Help from a Lawyer with Expertise in Disability Insurance
Disability insurance law is complex. Hiring an experienced disability attorney is important. Because all disability lawyers at this law firm focus on disability insurance claims, we have expertise in disability insurance law.
That means have:
- Experience with every major disability insurance company;
- A proven track record of success by winning major disability lawsuits;
- Recovered millions of dollars in disability benefits for clients;
And, we never charge fees or costs unless our clients get paid.
The firm can help at any stage of your disability insurance claim, including:
- 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.
Because federal law applies to most disability insurance claims, our lawyers are able to represent clients across the country.
Call to speak with an experienced disability attorney. Consultations are free.
Call Dabdoub Law Firm today at (800) 969-0488 to speak with an experienced attorney about your case.