• Menu
  • Skip to right header navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to footer

Before Header

Has your disability claim been wrongfully denied or terminated? Call us today for help!  (888) 321-8131

  • Facebook
  • LinkedIn
  • YouTube

OLF Ortiz Law Firm National Disability Attorneys

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, ERISA disability claims, and Social Security Disability claims.

  • ABOUT US
    • Nick Ortiz
    • Our Team
    • Case Results
    • Testimonials
  • PRACTICE AREAS
    • Long Term Disability
      • Long Term Disability Appeals
      • Long Term Disability Lawsuits
      • Lump Sum Buyouts/Settlements
    • ERISA Disability Claims
    • Individual Disability Insurance
    • Social Security Disability Claims
      • Initial Applications for Social Security Disability
      • Request for Reconsideration
      • Hearing Before an Administrative Law Judge
    • Long Term Care Insurance Claims
    • Personal Injury Claims
  • DISABLING CONDITIONS
    • Long Term Disability
    • Social Security Disability
  • INSURANCE CARRIERS
    • View All
    • Insurance Company Tricks And Tactics
  • RESOURCES
    • Blog
    • eBooks, Guides, and More
    • Lump Sum Disability Buyout Calculator
    • Long Term Disability FAQs
    • Social Security Disability FAQs
    • Long Term Disability Glossary
    • Individual Disability Insurance Policy Analysis
    • Long Term Disability Federal Court Case Summaries
    • Abbreviations in Social Security Disability Claims
  • Search
  • CONTACT

Mobile Menu

Call us today for help!

(888) 321-8131
  • ABOUT US
    • Nick Ortiz
    • Our Team
    • Case Results
    • Testimonials
  • PRACTICE AREAS
    • Long Term Disability
      • Long Term Disability Appeals
      • Long Term Disability Lawsuits
      • Lump Sum Buyouts/Settlements
    • ERISA Disability Claims
    • Individual Disability Insurance
    • Social Security Disability Claims
      • Initial Applications for Social Security Disability
      • Request for Reconsideration
      • Hearing Before an Administrative Law Judge
    • Long Term Care Insurance Claims
    • Personal Injury Claims
  • DISABLING CONDITIONS
    • Long Term Disability
    • Social Security Disability
  • INSURANCE CARRIERS
    • View All
    • Insurance Company Tricks And Tactics
  • RESOURCES
    • Blog
    • eBooks, Guides, and More
    • Lump Sum Disability Buyout Calculator
    • Long Term Disability FAQs
    • Social Security Disability FAQs
    • Long Term Disability Glossary
    • Individual Disability Insurance Policy Analysis
    • Long Term Disability Federal Court Case Summaries
    • Abbreviations in Social Security Disability Claims
  • Search
  • CONTACT
You are here: Home / Long Term Disability / Additional Parts Of A Claim That Do Not Happen in Every Case / Long Term Disability Buyout Offers v. Settlement Offers

Long Term Disability Buyout Offers v. Settlement Offers

July 14, 2020 //  by Ortiz Law Firm//  Leave a Comment

In the context of this article, it’s important to distinguish between long-term disability buyout offers and settlement offers. A buyout offer is extended by the insurance company while you are actively receiving long-term disability benefits. On the other hand, a settlement offer arises when you have been fully denied these benefits and are in the process of negotiating a resolution with the insurance company, either immediately before or after initiating legal action.

This distinction is very important. Let’s go back to buyout offers for a moment.

Again, buyouts are only when the insurance carrier has acknowledged that it’s supposed to be paying you benefits and is paying you benefits, but they want to give you a one-time lump sum settlement to buy you out. In the long run, this will save the insurer money that it would have otherwise paid over the lifetime of the claim. Because they have acknowledged that they are supposed to be paying you benefits, they may pay a higher percentage of the total value of the claim.

A lot of people go online, and they read about how when you receive a buyout offer from an insurance company, you may be able to receive 50, 60, 70, even 80% of the total value as a settlement as part of the buyout. Those percentages are totally different in a situation where the insurance company has denied your claim, and you’re trying to do a settlement.

Let’s give you an example: You’ve had to sue the insurance company to get your benefits, and you’re about to go to mediation. In that type of situation, we’ve oftentimes seen that the insurance company is only willing to settle that claim for less than 50%. A lot of people come to us and say, “But wait a minute, I did my own research online. I see that insurance companies will settle cases for 50 to 80%.”

We have to explain to them that that situation is totally different because the 50 to 80% range applies when they’re already paying benefits like they’re supposed to. In the latter situation, in litigation, they’ve already said that they don’t think they should be paying benefits. As a result, those have a lower value and typically settle than less than 50%.

Again, those are situations where the person is already receiving benefits. This is all very highly technical. You should not make a decision without consulting with an attorney about the individual circumstances of your case.

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 assess the value of your disability claim from their perspective, which carries the risk of potentially undervaluing your case.

How Will a Long-Term Disability Attorney Help With My Claim?

Before accepting a lump-sum buyout offer 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.

Utilize our lump-sum disability settlement calculator to gauge the fairness of the offer at hand. Alternatively, our experienced Long Term Disability Insurance attorney can assist you in assessing various critical elements, including:

  • The current monetary worth of your claim;
  • Living expenses and inflation;
  • Life expectancy and mortality rates; and
  • Tax implications.

If you think the offer is too low, you can contact the Ortiz Law Firm and request that our long-term disability attorney negotiate a higher amount on your behalf.

Conclusion

The insurance company might press you to make a hasty decision, but it’s important to carefully evaluate all your available options first. Opting for a lump sum settlement represents a conclusive arrangement between you and the insurance provider. The most important thing to remember when negotiating is to make sure that the lump sum settlement will meet your needs throughout your life.

We evaluate buyout offers 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 would like to discuss your options, I encourage you to give us a call at (888) 321-8131. If you’d like additional written materials, there’s a free book that I wrote called “The Top 10 Mistakes That Will Destroy Your Long Term Disability Claim” that is available for download.

FacebookTweetPinLinkedInPrintEmail

Category: Additional Parts Of A Claim That Do Not Happen in Every Case, Long Term Disability

Recent Posts

  • How to Win a Long Term Disability Appeal: Do’s and Don’ts
  • 3 Steps You Must Take Right Now If Your LTD Benefits Are Terminated!
  • Leveraging the Grid Rules to Secure SSDI Benefits After Age 50
  • What Is an On-The-Record Decision in a Social Security Disability Claim?
  • Understanding the Difference Between Diagnosis and Functional Impairment in Long Term Disability Claims
Previous Post: « Long-Term Disability for Multiple Disabilities
Next Post: Social Media Accounts Are Being Used To Deny LTD Claims »

Reader Interactions

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Primary Sidebar

Top Ten Mistakes That Will Destroy Your Long Term Disability Claim

View All Resources

"I highly recommend Ortiz Law Firm. Very friendly staff. They helped me win my appeal against Liberty Mutual. Thank you all for being the best!!"

Lavanda T.

View All Testimonials

Learn More About Long Term Disability

  • Areas We Serve
  • Frequently Asked Questions
  • Denials and Appeals
  • Your Chances of Getting Approved
  • Medical Eligibility
  • Additional Parts That Do Not Happen in Every Case
  • Medical Conditions That May Qualify
  • Long Term Disability Insurance Carriers
  • Occupations That May Qualify
  • LTD Federal Court Case Summaries

Footer

Contact Us

Our experienced disability law firm is ready to fight for you. Contact us today for a free case evaluation.

(888) 321-8131
316 S Baylen St., Ste 590
Pensacola, FL 32502

  • Email
  • Facebook
  • LinkedIn
  • YouTube

Claims We Handle

  • Group Long Term Disability
  • ERISA Disability Claims
  • Individual Disability Insurance
  • Social Security Disability Claims
  • Long Term Care Insurance
  • Florida Personal Injury

Quick Links

  • About Us
  • Free Resources
  • Client Testimonials
  • Case Results
  • Nationwide Representation
  • Refer a Case

Site Footer

© 2023 Ortiz Law Firm

Sitemap | Disclaimer | Privacy Policy

Share this ArticleLike this article? Email it to a friend!

Email sent!