Many employees rely on long-term disability (LTD) insurance if they are unable to work due to an illness or injury. Short-term disability insurance coverage lasts only several weeks or months, but long-term disability benefits can continue for years. It’s common for those who have filed a long-term disability claim to be offered a lump-sum settlement or buyout from the insurance company. It’s understandably tempting to accept it; however, there are several points to consider before making your decision.
A long-term disability settlement offer is an offer by the insurance company to pay a lump sum amount all at once in exchange for receiving ongoing benefits under a policy. These offers are sometimes referred to as long-term disability buyouts. Insurance companies often offer claimants lump-sum disability settlements to cut their costs. Claimants shouldn’t be quick in deciding to accept a long-term disability settlement. Once they agree to the settlement, they don’t have a way of changing their mind and going back to regular payments under the policy.
There’s no blanket answer when it comes to accepting a lump sum settlement from your long-term disability claim. There are many factors you need to consider, including:
It’s best to have a knowledgeable Chicago long-term disability attorney review these factors with you. They can help you consider other points you may not have thought about while providing an educated view of your options.
Whether you just recently learned that you will need to file a long-term disability claim or have already been offered a lump sum settlement, reach out to an experienced Chicago long-term disability attorney. Contact Bartolic Law today to schedule your confidential, free case review. If you were offered a long-term disability buyout offer or your employer denies your disability claim, we are here to help.