Sometimes, a long-term disability insurance company will send you a letter offering to buy-out your right to continued benefits for a one-time payment, better known as a lump-sum buyout offer. Buyout offers are made by the insurance company while you are receiving long-term disability benefits.
Lump sum buyout offers are different from settlement offers. More often, a disability insurance carrier will deny your claim or terminate your monthly benefits in an effort to force a lump-sum settlement of your disability claim. Lump sum settlement offers only occur when you’ve been completely denied benefits and you’re trying to negotiate a settlement with the insurance company either right before or after filing a lawsuit.
Disability attorney Nick Ortiz helps disability insurance policyholders negotiate the best possible buyout or settlement of their disability claim.
How Do Disability Attorneys Help with Lump-Sum Buyout or Settlement Offers?
Before accepting a lump-sum payment you should understand your legal rights, the value of your claim, and what it will take to fight back against a low-ball offer from the disability insurance company.
Buyouts and settlement always call for experienced legal analysis and guidance. The insurance company will be estimating what your disability is worth from the insurance company’s point of view. There is a chance they could undervalue your claim.
Start your research by using our free calculator, and then contact our office for a consultation. An experienced Long Term Disability Insurance attorney can help you evaluate 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 review all your options first. A lump-sum buyout or settlement will be a final agreement between you and the insurance company. We handle buyout settlements and settlements in litigation, and we’ve even been able to settle cases right before going to court in what we call pre-litigation mediation.
If you’d like to speak to a Long-Term Disability Insurance attorney about your options, contact Ortiz Law Firm at (888) 321-8131. We can help you evaluate whether the offer is fair and how to move forward with the process.