Understanding Long-Term Disability Settlements
How Do Disability Settlement Negotiations Work?
In a negotiated settlement, you give up rights to future payment of benefits in exchange for a certain sum of money.
What Is A Lump Sum Settlement For A Long-Term Disability Claim?
A lump sum settlement is a fixed payment of benefits to resolve your claim in its entirety.
What Factors Do Insurance Companies Consider When Calculating Lump Sum Offers?
There are a number of factors that insurance companies consider when calculating lump sum offers, including:
- The nature of your disability,
- The amount of benefits owed,
- The likelihood of your recovery,
- The length of payment due,
- Medical conditions that might affect your life expectancy,
- And more…
How Do I Know If The Insurance Company Is Giving Me A Fair Disability Settlement Offer?
It can be tricky to be sure whether an insurance company is giving you a fair disability settlement offer. This is a particularly difficult question to answer because so many factors play into it.
Not only should you consider the amount of benefits that would be owed if you continue to be disabled through the maximum benefit period, but you are also looking at other medical conditions you might have that may lessen your life expectancy. There are also other factors such as the treatment you are receiving, the lack of treatment you are receiving, and the risk that you run of losing your claim.
Overall, you will not know if an insurance company is giving a fair offer without having an ERISA disability claims lawyer on your side who knows all the details of your unique situation.
If you consult with us, we will evaluate every factor of your case. Then, we can inform you as to whether or not you have a fair or reasonable settlement before you.
What Is The Goal Of A Settlement Negotiation?
The goal of settlement negotiations is to maximize your potential recovery and eliminate your potential risk of losing.
Settlement involves an inevitable trade-off. By accepting an offer, you give up the possibility of future benefits but you also avoid the risk of losing or getting nothing in exchange for the certainty of a lesser settlement.
How Long Do I Have To Respond To The Insurance Company’s Disability Settlement Offer?
Most carriers will give you a reasonable time to consult with an attorney or a tax advisor as needed before the offer is withdrawn. The timeline will usually be within their offer letter.
What Factors Need To Be Considered By A Disability Insurance Claimant Before Entering Into Negotiations With A Long Term Disability Insurance Company?
As a professional settlement attorney, I advise my clients to consider all the advantages and disadvantages of both settling and going to trial.
If you don’t settle a case, but win at trial, you will receive back benefits and reinstatement of benefits in the future until the insurance company decides that you are no longer entitled to those benefits.
However, you cannot recover the future value of the benefits — you can only win the right to future benefits if you continue to qualify as disabled.
If there are other reasons to remain on long term benefits, then remaining on benefits may be your best choice. However, if all you get from being on long term benefits is the long term benefit itself, you should weigh the pros and cons of trial with an experienced attorney.
For more information on Long Term Disability Settlement Negotiations, a free consultation is your next best step. Get the information and legal answers you are seeking by calling (352) 577-7746 today.