If you’re receiving long-term disability (LTD) benefits from Unum, you may eventually receive a buyout offer — a lump sum payment in exchange for giving up future monthly benefits. It may seem like a good deal on the surface, but there’s a lot to consider before you say yes.
What Is a Long-Term Disability Buyout?
A buyout, also known as a lump sum settlement, is when Unum offers to pay you a lump sum in exchange for releasing them from any future payments on your claim. Once accepted, your monthly benefits stop — permanently.
Buyouts are often offered if:
- You’ve been on claim for several years.
- Your condition appears to be stable or permanent.
- Unum sees a financial benefit in closing out your claim.
- There’s potential for future disputes over eligibility.
Why Would Unum Offer a Buyout?
From Unum’s point of view, it’s a financial strategy. They’re looking to reduce long-term liabilities and settle claims that could otherwise remain active for years. They may also offer a buyout if they’re considering terminating benefits in the future.
In other words, Unum may be not offering you a lump sum as a favor — they may be offering it because they believe it will save them money in the long run.
Use Our LTD Buyout Calculator to Evaluate Your Offer
To make an informed decision, it’s crucial to know how your buyout compares to the actual value of your benefits. That’s why we created a free Long-Term Disability Buyout Calculator, available right on our website.
Try the calculator now to estimate the present value of your claim and compare it to Unum’s offer.
This tool can help you assess whether the lump sum is reasonable or falls short of what your benefits are really worth.
What If You Decline the Offer?
Declining a buyout doesn’t automatically affect your ongoing benefits — but it could be a sign that Unum is reevaluating your claim. In some cases, a buyout is followed months later by increased scrutiny, medical reviews, or even termination of benefits.
If this happens, you’re not out of options — but you need to act quickly. We help claimants appeal denied claims and fight back when insurers wrongly cut off payments. LTD appeals have strict deadlines, so contact us today if Unum has denied your benefits.
Should You Accept the Offer?
Accepting a lump sum may make sense if:
- You have other financial resources.
- You’re concerned about future claim denials.
- You’d prefer to manage your own funds.
- The offer is close to the present value of your benefits.
But it’s not always a good offer. Some offers are “lowball” offers that don’t reflect the full value of your claim. Others come with pressure tactics or tight deadlines. Don’t rush into a decision that could affect your long-term financial stability.
Get Help Reviewing Your Unum Buyout Offer
Before accepting a buyout, it’s wise to consult with someone who understands how these offers work — and what your claim is really worth. We’ve helped many claimants review Unum buyout offers over the years. If you’ve received a buyout offer, reach out to learn more about how we can help. In most cases, Unum will pay for you to discuss the buyout offer with an attorney. Call the Ortiz Law Firm today at (888) 321-8131 to get help evaluating your Unum buyout offer.
