Considering a Lump-Sum Buyout on Your Long-Term Disability

If you are already receiving long-term disability but are thinking about a lump sum buyout for any reason, it is important to consider all aspects and to consult with your ERISA lawyer first. Where lump-sum buyouts may be beneficial to some, others find them lacking. Reasons to consider a lump-sum buyout include:

  • Not having to be accountable to the insurance company. Being monitored and tracked by the insurance company in order to receive payment is not enjoyable for anybody. A buyout of benefits allows you to live your life without the constant shadow of having to prove, again and again, that you do actually suffer from a disability. Constant documentation and medical corroboration become things of the past.
  • Not having to worry about your disability claim being denied or terminated. Having payments end at the discretion of the insurance company and under their specific clauses is a constant fear of those who depend on those disability benefits. A lump sum agreement can prevent the insurance company from terminating a claim once the claimant falls under the category of being unable to work "at any occupation".
  • Peace of mind. There always exists the possibility that the insurance company offering the benefits may go bankrupt, insolvent or shut its doors, unable to pay outstanding or due benefits. A lump-sum buyout ensures that the claimant is not suffering financial hardship should this happen.
  • Doing what you need with your benefit payments. While receiving monthly payments, that money is to be budgeted for paying monthly living expenses. If you should get a lump sum buyout, you can use those funds where needed and where you see fit; investing the money when and where desired.

Remember, that every situation is different and you should get advice as to whether a buyout is the right step for you and your circumstance. Discuss the options with your disability attorney before making the determination.

No Comments

Leave a comment
Comment Information

Learn More About How We Can Help You

Call us today at 866-360-0983 to schedule your free initial consultation with our team. You can also contact us online to make your appointment.

Bold labels are required.

Contact Information
disclaimer.

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

close

Privacy Policy

Contact Our Firm Today

Erisa Law Center

ERISA Law Center
6485 North Palm Avenue
Suite 105
Fresno, CA 93704

Toll Free: 866-360-0983
Map & Directions