Sometimes, a long-term disability insurance company will send you a letter offering to buy out your right to continued benefits for a lump-sum payment, better known as a lump-sum buyout offer. The insurance company makes buyout offers while you are receiving long-term disability benefits.
Lump-sum buyout offers are different from settlement offers. More often, a disability insurance company will deny your claim or stop your monthly benefits to force you to settle your disability claim.
A lump sum settlement offer only occurs after you’ve been completely denied benefits and are trying to negotiate a settlement with the insurance company. This may be a pre-suit negotiation or it may occur after a lawsuit has been filed.
How Do Disability Attorneys Help with Lump Sum Buyout Offers?
Before accepting a buyout offer, you should understand your legal rights, the value of your claim, and what it takes to fight back against a lowball offer from the disability insurance company.
Start your research with our free Long-Term Disability Lump-Sum Buyout Calculator. The insurance company will estimate the value of your disability claim from the insurance company’s perspective, so there is a chance they could undervalue your claim.
Then, an experienced long-term disability insurance attorney can help you evaluate other factors such as:
- The present value of your claim;
- Cost of living;
- Mortality rate, and
- Taxes.
Don’t Let an Insurance Company Deny You the Security and Success You Deserve
The insurance company may want you to make a quick decision, but take some time to consider all your options. A lump-sum buyout is a final agreement between you and the insurance company. You can’t go back to the insurance company and ask for more money after you sign the agreement.
