Long-Term Disability Buyouts

If you’re receiving Long-Term Disability (LTD) benefits, your insurance company may approach you with a buyout offer – also called a lump sum settlement. At first glance, a buyout may seem appealing: one large payment instead of monthly checks. 

But before you accept, it’s important to understand what you’re giving up and whether the offer is fair. At Cavey Law, we help you evaluate disability buyouts so you can make the best decision for your future.

What Is a Long-Term Disability Buyout?

A buyout happens when the insurance company offers to pay you a single lump sum in exchange for ending your policy. Once you accept, your monthly disability benefits stop, and you usually can’t go back later if your condition worsens.

Insurance companies offer buyouts because it saves them money in the long run. They want to pay less than what they would owe you if they continued making monthly payments for years – or even decades.

Factors to Consider Before Accepting a Buyout

Deciding whether to take a buyout isn’t simple. You need to weigh factors like:

• Life Expectancy – How long are your benefits expected to last?
• Policy Terms – Does your policy pay until retirement age, or does it cut off sooner?
• Present Value vs. Future Value – Is the lump sum enough to fairly reflect the total you would receive over time?
• Taxes – Depending on how your policy was paid, benefits may or may not be taxable.
• Medical Outlook – Will your condition likely improve, remain stable, or worsen?
• Financial Security – Will a lump sum protect your financial future, or does it risk being spent too quickly?

Why You Should Hire an Attorney for a Disability Buyout

Insurance companies calculate buyouts in ways that favor them – not you. Without an attorney, you may accept far less than your claim is worth. Here’s why having legal representation matters:

1. Valuation Expertise – We calculate the true present value of your claim, factoring in interest rates, inflation, and your specific policy terms.
2. Negotiation Power – We know how insurance companies undervalue claims, and we negotiate to maximize your payout.
3. Protecting Your Rights – Once you sign a buyout, it’s final. We make sure you understand exactly what you’re agreeing to.
4. Peace of Mind – With legal guidance, you can make an informed choice instead of feeling pressured into a quick decision.

How Cavey Law Can Help with Your Disability  Lump Sum Buyout

At Cavey Law, we have extensive experience handling LTD buyouts and negotiating with insurance companies. Our team will:

• Review your buyout offer in detail.
• Calculate whether the lump sum is fair compared to your policy’s value.
• Advise you on the pros and cons for your unique situation.
• Negotiate for a higher settlement when appropriate.

We approach every buyout with one goal in mind: securing your financial future while protecting your rights.

Don’t Accept a Buyout Without Legal Advice

A buyout may sound like a quick solution, but it’s a decision with lifelong consequences. Before signing anything, talk to an experienced ERISA and disability attorney who can ensure the offer is fair and in your best interest.

At Cavey Law, we fight to turn tough times into triumphs – whether that means continuing your monthly benefits or negotiating the strongest possible buyout.