Sometimes, a long-term disability insurance company will send you a letter offering to buy out your right to continued benefits for a lump-sum payment, better known as a lump-sum buyout offer. The insurance company makes buyout offers while you are receiving long-term disability benefits.
Lump-sum buyout offers are different from settlement offers. More often, a disability insurance company will deny your claim or stop your monthly benefits to force you to settle your disability claim. Lump sum settlement offers only occur after you’ve been completely denied benefits and are trying to negotiate a settlement with the insurance company. This may be a pre-suit negotiation or it may occur after a lawsuit has been filed.
How Do Disability Attorneys Help with Lump Sum Buyout Offers?
Before accepting a buyout offer, you should understand your legal rights, the value of your claim, and what it takes to fight back against a lowball offer from the disability insurance company.
Start your research with our free calculator. The insurance company will estimate the value of your disability claim from the insurance company’s perspective, so there is a chance they could undervalue your claim.
Then, an experienced long-term disability insurance attorney can help you evaluate other factors such as:
- The present value of your claim;
- Cost of living;
- Mortality rate, and
- Taxes.
Don’t Let an Insurance Company Deny You the Security and Success You Deserve
The insurance company may want you to make a quick decision, but take some time to consider all your options. A lump-sum buyout is a final agreement between you and the insurance company. You can’t go back to the insurance company and ask for more money after you sign the agreement.