A private long-term disability insurance policy should give you a certain level of peace of mind. And when something goes tragically wrong and you need to rely on that disability insurance policy, your insurance provider should step in to protect you. Yet, all too often insurance companies do everything they can to duck and dodge paying out claims. And even if they can’t find a way to wiggle out of paying one, they’ll seek a way to resolve the claim that allows them to pay less.
Insurance companies try to accomplish this by offering settlements that fall well short of what claimants are otherwise owed. In some instances, though, taking a lump sum settlement may be in your best interests. But how do you know when it’s the right time to settle your long-term disability claim?
There’s a lot to take into account when considering whether you should accept a settlement for your long-term disability claim. The factors you should pay particularly close attention to include:
- Your condition at the time of the settlement offer: The insurance company might try to offer you a lower settlement amount based on your current condition, given that it may not be immediately apparent that your disability will last as long as you think or that it will be permanent in nature. As you assess a settlement offer, then, you should carefully review the medical evidence that speaks to your prognosis. By doing that and speaking to your medical providers, you should have a better idea of your ongoing care needs and the cost of them, that way you can negotiate for a fairer settlement.
- How much money you need to be financially stable today: The biggest advantage of a lump sum settlement is that it provides you with a quick infusion of cash now rather than having to wait for your claim to otherwise be sorted out. Therefore, if you’re struggling financially right now, then a lump sum can look appealing, whereas if you’re able to wait out your claim, you may be able to recover more compensation. You could try to strike a balance where you settle your case to secure stability while still negotiating for a fair sum.
- How much ongoing stress can you handle: Pursuing a long-term disability claim isn’t a walk in the park. You might be placed under surveillance to see if your behavior aligns with your claimed condition, and even if benefits are granted you’ll likely be subjected to periodic re-evaluations to determine whether you’re still disabled and therefore qualify to continue receiving benefits. If you accept a settlement, on the other hand, you won’t have to deal with the insurance company and their shenanigans ever again.
- How you want to put your benefits to use: There are many advantages to how you can use a lump sum settlement. For example, if you pass away and took a lump sum payment, then those funds can be inherited by your loved ones. If you were receiving periodic payments, though, then your benefits will simply cease, leaving your loved ones with nothing related to your condition. Also, with a lump sum settlement you’re free to use that money to help you reenter the workforce. If you secure periodic payments, then your attempts to gain employment could affect your eligibility for ongoing disability support.
As you can see, there are multiple options for how to handle your disability claim. You have to pick the one that’s right for your recovery and what you hope to get out of future. If you want to learn more about how to effectively build your case and secure the outcome that you need, then please continue reading our blog and the rest of our website.
