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HomeNewsShould I Accept a Lump-Sum Long-Term Disability Settlement?

Should I Accept a Lump-Sum Long-Term Disability Settlement?

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.

Long-Term Disability Settlement Offers

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.

Factors to Consider Before Accepting a Lump Sum Deal

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:

  • Age and life expectancy: How long will you need to depend on the settlement? What will your expenses be over this time period?
  • Financial security and sources of income: Will you have other income streams during that time period?
  • The likelihood that you will return to work: Even if you have other income streams, evaluate if you will be able to return to work at some point. Suppose you do anticipate being able to return to work. Will your disability impact your job opportunities, hours, or wages in the future?
  • Future medical expenses: Do you require long-term medical care? Have you accounted for unexpected complications of re-injury or other increased medical expenses in the future?
  • The strength of your claim: Talking to an experienced Chicago disability claims attorney can help you determine how strong your claim is. If your case is strong, you may not want to accept a settlement.
  • How much of the settlement will you receive? Remember that you will need to pay attorney fees and other expenses. You may possibly need to pay taxes as well, depending on the facts in your case and who is responsible for paying the insurance premium. After all of these extraneous expenses are paid, make sure the settlement amount you will receive is enough to meet your needs.
  • Is the settlement offer reasonable? Evaluate your settlement offer as a whole. Consider the severity of your illness or injury and the terms of your benefits policy.

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.

Contact an Experienced Chicago Long-Term Disability Lawyer Today

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.

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