Settlements, lump-sum payments and buyouts of long term disability policies are the three terms used for the same general idea: the insurance company pays a single sum to the claimant, who no longer receives a monthly benefit and waives the right to any further payments from that long term disability insurance policy.
In certain circumstances, negotiating a lump sum payment for the remainder value of the long term disability policy is the best possible option. This removes concerns about living under surveillance from private investigators or surprise at-home interviews from a field investigator seeking a reason to terminate disability benefit payments. The claimant is no longer subjected to ongoing requests for Independent Medical Examinations (IMEs) and their own doctors are not being asked to provide updates and medical records.
Making the decision to pursue a settlement with a long-term disability insurance company is the first step of a process that can take some time to bring to resolution. This is also a decision that requires empirical and statistical analysis. Emotions must be set aside when analyzing and negotiating a settlement.
We work closely with clients to consider critical factors that ensure that this lump sum payment is a solution that makes financial sense for them in both the short and long term. Our years of experience in settlements on behalf of clients has given us the insight into what the settlement can - and sometimes, cannot – achieve for the client and their family.
We measure such elements as the overall value of the policy, the future exposure of the claim for the insurance company, and conduct a forward-looking analysis of future claim risks that may occur for our clients and the insurance company. There are instances when the settlement appears to be a great short term solution – but the long term effects could be financially disastrous.
At Frankel & Newfield, we have the experience of representing clients seeking a long term disability insurance settlement with the practical knowledge of what occurs after the settlement takes place. Our clients appreciate our knowledge and the care we take in making sure they understand the long range outcomes that can be expected.
In addition, when appropriate, we represent clients in alternative dispute resolution forums. When claims have been denied or terminated, we are able to bringing settlements to fruition without having to embark on a formal litigation path.