Sometimes insurance companies will offer what is called a lump sum settlement. A lump-sum settlement means that instead of receiving monthly payments, you will be given a one-time payment equal to the number of months they planned to pay in one check. This might sound like a great idea- you get a large check, and the insurance company doesn’t have to worry about monthly payments. But a lump sum settlement comes with advantages and disadvantages.
If you have been offered a lump sum settlement payment, we understand that most claimants are tempted to accept a quick cash payment because they are suffering financially as a result of their disabilities, but you should decide whether or not to settle very carefully. The insurance company will be estimating what your disability is worth from the company’s point of view. There is a chance they could undervalue your claim.
What Will a Long-Term Disability Attorney Do for You?
Before accepting an offer you should understand your legal rights and what it will take to fight back against the disability insurance company. 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
Don’t Let an Insurance Company or Another Individual 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 settlement will be a final agreement between you and the insurance company. Making sure that the lump sum settlement will meet your needs throughout your life is the most important thing to remember when negotiating.
If you’d like to speak to a Long-Term Disability Insurance attorney about your lump-sum settlement offer, contact us at (888) 321-8131 to schedule a consultation. We can help you evaluate whether the offer is fair and how to move forward with the process.