Disability Insurance Lawyer Blog

LUMP SUM BUYOUT OF A DISABILITY CLAIM

If you are worn out financially and emotionally from battling a long term disability insurance company, the offer of a lump sum buyout probably sounds like the light at the end of the tunnel. No more forms, examinations by insurance company doctors, fears of video surveillance and waiting for checks.

Frankel & Newfield has successfully represented hundreds of clients in negotiating lump sum settlement negotiations with their insurance companies. This is an area where our Firm's experience and knowledge gives our clients an advantage. All too often we hear from individuals who accepted a first offer from a disability insurance company and realize that they accepted a financial buyout that has made their situation worse, not better.

The insurance company has a very clear agenda on a lump sum buyout - minimizing its cost.

The disabled person has another agenda - maximizing the amount of money they receive and eliminating the challenges of dealing with an insurer.

The insurance company considers this type of information when making a decision:

Terms as stated in the policy
Age, income, mortality
Expected duration of the claim - to age 60? 65? Death?
COLA (cost of living) increases in the policy
Current market rates - interest rates, bond rates

But there's more to consider. What if inflation takes off for a wild ride? What is the value of the entire policy in terms of today's dollars? Will that truly be enough for you to care for yourself and your family?

Be especially cautious when discussing this matter with the agents and claims personnel from your insurance company. Misleading representation is not unusual - whether it is from a deliberate attempt to frighten claimants into accepting a poor offer or from an untrained representative does not matter. They are counting on your lack of knowledge and willingness to accept whatever they offer.

Their bottom line is at odds with yours - they want to minimize their cost and exposure. You want to maximize your buyout. Be prepared.

If you are receiving disability insurance benefits and have questions about a lump sum or one time buyout of your policy, call our office. If your insurance company has contacted you about a lump sum buyout, our attorneys will discuss your claim and explore whether your insurance company is making you an offer that is fair and reasonable, or if you need to consider another approach.

Frankel & Newfield is dedicated to ensuring that our clients receive the highest possible amount from their lump sum buyout. Call our office today and learn how we can help.

EMPLOYEE BENEFITS SEASON - SOME TIMELY WORDS ON DISABILITY INSURANCE FOR EMPLOYEES

Fall is the season when many employees have a window of time to reevaluate their benefits package. While most working Americans think of this as a time to adjust their retirement plans, this is also the time to examine other benefits - particularly, disability insurance.

When you are offered disability insurance by your employer, it's a good option to consider. Statistically speaking, you are more likely to become disabled than you are to die during your working life. Disability insurance is in place to protect your income if illness or injury should cause you to be unable to work. You will pay less for a plan that is offered through your employer than one which you would purchase on your own. Chances are also good that you will not need to undergo the same rigorous underwriting process when you buy a policy through your employer than you would if you were buying a policy on your own.

However... if you have read any part of this website you know that disability insurance policies that are purchased through your employer are governed by ERISA, a law that was originally designed to protect the benefits of hardworking Americans that was mutated by the insurance industry into a labyrinth that makes fighting delays and denials challenging.

Despite the complexity and challenges, we believe that disability insurance is part of a healthy employee benefit package. It's something that no one actually ever wants to have to use - but not having it, even in the face of challenges and difficulties, can lead to nightmare scenarios.