Hi. I'm Nick Ortiz. I'm a board certified disability insurance attorney.
Today I'm here to talk to you about Cigna buyout settlement offers.
You're probably wondering what to do if Cigna sends you a letter offering to buyout your long term disability claim.
The very first thing that you should do is contact an attorney. In fact, oftentimes in a buyout letter, and the buyout letters that I've reviewed, Cigna offers to pay up to $250 for you to consult with a financial advisor or an attorney to discuss their offer. So you may as well take them up on that offer and see an attorney, and have Cigna pay the consultation fee for that.
You really have three options when you receive such a letter. Again, I want to reiterate that the best option for you is on a case by case basis. So you really should consult with someone to discuss the best option for your individual case.
Option number one is to accept the offer. The benefit of that is that you will receive a set amount of money, whatever was set forth in their letter, and your case is closed. So the finality of that and knowing the outcome is good for a lot of people with that option.
Option number two is to just decline the letter and continue to receive your monthly benefits. That's a really good option for a lot of people, because, at the end of the day, you're going to receive your maximum amount of benefits over the lifetime of your benefit claim. Otherwise, a settlement buyout is for a smaller percentage of the total value of the claim.
Option number three is to reject the offer, and go back with your own counter offer. Now, again, under the law, if you counter offer them, then their offer goes away, and they can either accept or reject your offer or stand their own ground. So with that third option, you now see that your options are not just to accept or reject their offer. It is potentially negotiable. I have found in my experience that we've been able to negotiate with Cigna a higher settlement amount for our clients.
Some claimants like to negotiate with the insurance company on their own. However, there are lots of people who want to make sure that they don't want to make any mistakes or say something that might seriously damage their claim, so they would prefer to have an experienced attorney handle the negotiations for them. We do offer that service to our clients, negotiating with the insurance company a higher buyout settlement amount.
The way our fees work in that situation is really unique. We don't assess a fee on the total amount that you're going to receive from the insurance company. Instead, our starting point is the last offer from Cigna. So we do typically handle these cases on a 30% contingency fee, but only on that amount over what's already been offered to you. If you'd like to explore that option with our office, then I encourage you to give us a call at 850-308-7833.
If you'd like more information about the long term disability process, I encourage you to download a free copy of a book that I wrote called The Top 10 Mistakes That Will Destroy Your Long Term Disability Claim. You can go to www.freeltdbook.com today to download a free copy. Thanks for listening.