Sometimes, disability carriers will offer to buy-out your right to continued benefit for a one time lump sum payment to you. More often, a disability insurance company will deny claims just to force a lump sum settlement of your disability benefits.
They just don’t want to continue to pay you benefits!
Disability attorney Nancy L. Cavey routinely helps policy holders negotiate the highest possible buyout or settlement possible.
How Do Disability Carriers Value A Disability Case?
There are many factors that come into play in determining the value of a disability claim and each case is unique. Some of the factors disability carriers consider are:
How much they have to pay you each month after all the reductions or offsets they can take;
How many years the policy obligates them to pay you benefits;
Whether there are any policy provisions that shorten the number of years they are obligated to pay your benefits;
How likely you are to remain disabled;
How long you are expected to live and how your disabling medical condition might reduce your life expectancy;
The value of any past due benefits you might be owed, and
The current bond interest rate;
The present value of future monthly benefits;
The likelihood of winning if they denied your claim.
A disability insurance company never pays 100% of the value of a case. They have no financial incentive to do so and can take the money that have reserved to pay on your claim and invest it. Insurance companies make money on the money they set aside to pay your claim so they need a financial incentive to buy back your policy or settlement your claim.
Does It Make Sense For You?
Lump sum buyouts aren’t right for everyone! It takes a comprehensive analysis to insure you are getting the best offer possible and to determine if a buyout is right for you.
The settlement of a litigated ERISA disability claim is a different matter. One of the most important factors, from the carrier’s perspective, is the likelihood of winning based on the applicable standard of review.
Contact disability attorney Nancy L. Cavey today for a comprehensive analysis of your disability carrier’s offer or to learn the true value of your disability benefits.