Attorney Fees In A Long-Term Disability Claim

If you’re unable to work because of an illness or injury, long-term disability insurance should be your safety net. But what happens if your claim is denied? This is where an experienced long-term disability attorney comes in.

How Much Do Long-Term Disability Attorneys Charge?

One of our office’s most commonly heard questions is: “How much does it cost to hire a long-term disability attorney?” I can certainly understand the reasoning behind the questions. If a disability insurance company has cut off your benefits (or never paid your disability insurance claims in the first place), you may not have any money to pay for an attorney.

The good news is that many disability lawyers work on a contingency fee basis, meaning you don’t pay unless they win your case. This system of justice allows you to hire the disability insurance attorney of your choice without an up-front retainer. Instead, the fee is a percentage of your past-due benefits. Thus, you can get help with your claim without taking financial risks.

Types of Attorney Fee Agreements

If you’re considering hiring a long-term disability attorney, understanding the types of fees involved can ease your concerns and help you make an informed decision. Here’s a breakdown of the most common fee structures you’ll encounter.

RELATED VIDEO: How Do Attorney’s Fees Work In A Long-Term Disability Case?

Contingency Fee Arrangements

A contingency fee arrangement can be a lifesaver for many clients. But what exactly is it? In a nutshell, a contingency fee means that your lawyer only gets paid if you win your case. No win, no fee.

• No Upfront Costs: You don’t have to pay any money out of pocket to get started. This is critical if your disability has already strained your finances.
• Motivated Attorneys: Because your lawyer doesn’t get paid unless you win, they’re highly motivated to get you the best possible outcome.
• No Risk: If your case doesn’t succeed, you owe nothing. This removes some of the financial stress and allows you to focus on your health.

At the Ortiz Law Firm, we work on a contingency fee basis. The amount of the contingency fee percentage varies based on the amount of the claimant’s monthly benefit and the specific facts of each case.

We’ve seen others publish that a typical contingency fee is 35% to 45% of your total recovery. The good news is that our standard fee agreement is below that entire range.

Moreover, we do not charge a fee on all future benefits if an appeal is approved for benefits. Please feel free to contact us for additional information on what we believe to be one of the most fair and competitive fee structures around.

Hourly Rates

Although less common in disability claims, some attorneys charge by the hour. Understanding how hourly billing works can help you decide if it’s the right option for you.

• Billing Hours: Attorneys track the time they spend working on your case and bill you accordingly. This may include time spent on phone calls, meetings, emails, and document preparation.
• Costs Can Add Up: Unlike contingency fees, where costs are tied to the settlement, hourly rates can add up quickly, especially if your case is complex or drawn out.
• When It Might Be Used: Hourly rates may be more common in straightforward cases or when a client prefers a detailed accounting of every hour spent on their case.

Flat Fees

In some scenarios, lawyers may charge a flat fee. This fee structure involves a set amount that you pay for specific legal services. It’s a one-time charge no matter how long the case takes.

• Predictability: You know exactly how much you’ll pay from the start, which can make budgeting easier.
• Simple Cases: Flat fees are often used for relatively straightforward cases where the amount of work required is predictable.
• Specific Services: If you need help with a single aspect of your case, such as drafting a specific document or reviewing your insurance policy, a flat fee may make sense.

Compare the Options

Each fee structure has its own benefits and potential drawbacks. Here’s a quick comparison to help you decide:

Type of Fee	Pros	Cons
Contingency Fee	No upfront costs, motivated attorneys	Not all cases qualify, percentage of settlement
Hourly Rates	Pay for actual time spent, detailed billing	Can be expensive, costs can add up quickly
Flat Fees	Predictable costs, good for simple cases	Not suitable for complex or lengthy cases

Additional Costs and Considerations

When hiring a long-term disability attorney, it’s important to consider potential additional costs beyond attorney fees. While many attorneys work on a contingency basis, there are other expenses you may incur during the claims process. Understanding these costs and how they’re typically handled can save you from unexpected surprises.

• Documentation Fees: Gathering the proper documentation for your claim is essential. These documents may include medical records, employer statements, and pharmacy records. Typically, these costs are covered upfront by the attorney if you have a contingency fee arrangement. This means you don’t have to pay out of pocket upfront, and the costs are deducted from your settlement if you win.
• Court Costs and Filing Fees: If your case progresses to a lawsuit, you may be subject to additional court costs and filing fees. These may include filing fees, expert witness fees, and mediator costs. In a contingency fee arrangement, your attorney will typically pay these costs initially and be reimbursed out of your settlement if your case is successful.

We Don’t Get Paid Any Attorney Fees In a Long-Term Disability Claim Until We Win

The Ortiz Law Firm is dedicated to helping people recover the disability benefits they deserve. We handle group long-term disability (LTD) claims, individual disability insurance policy claims, and ERISA disability claims. We handle most long-term disability claims on a contingency fee basis, meaning we charge a percentage of the amount recovered. This fee is contingent, meaning you owe us nothing unless we win.

How Much Do You Charge For Long-Term Disability Claims?

The amount we charge varies based on the amount of the claimant’s monthly benefit, the specific facts of each case, and how the case is resolved:

• If your internal administrative appeal is successful and your claim is reinstated during the appeal process, our fee is a percentage of the back pay owed and a percentage of future monthly long-term disability benefits for 12 months.
• If your case goes to court and you are put on claim, meaning that the insurance company starts to pay you benefits, then our fee will still be a percentage of the past due LTD benefits owed and a percentage of future monthly long-term disability benefits for 12 months.
• Often the insurance company doesn’t want to put you on claim, but they want to settle your case for a lump sum amount. In that case, our fee is a percentage of the lump sum amount.

Schedule a Free Case Evaluation Today

Understanding the financial aspects of hiring an attorney can help, but taking the first step to speak with a professional is crucial. A free case evaluation can provide the clarity and direction you need without adding to your financial stress. At the Ortiz Law Firm, we offer a free case evaluation to those who have been denied long-term disability benefits.

What to Expect In a Free Case Evaluation

During the evaluation, Nick Ortiz will gather details about your medical condition, work history, and the specifics of your insurance policy. This information will help him understand the nuances of your case and determine the best course of action. He will review your documentation, assess the strength of your claim, and identify any gaps or issues that could affect your chances of approval.

Making the Decision

A free case evaluation is an excellent opportunity to learn about the documentation needed to support your claim, possible timelines, and what to expect from the process. It will also help you choose the right disability insurance attorney to help you appeal a long-term disability denial.

Scheduling a free case evaluation is the first step toward securing the benefits you deserve. Call us at (888) 321-8131 or contact us online to schedule your free case evaluation today.