Disability Litigation Settlements

Negotiating and Settling a Lump Sum for a Long-Term Disability Insurance Claim

While the process appears to favor disability insurance companies over claimants and the insurance companies will typically do everything they can to deny your disability insurance benefits, there are instances in which you are able to reach a settlement, with a one-time lump sum payment. Settling a claim may be an option that varies with companies.

When a possible settlement is discussed, the insurance company will attempt to lure you with a number that may sound big, but the first offer will be much lower than the value of your policy. We see this many times.

You need to go into settlement negotiations with hard facts:

  • What is the future dollar value of your policy, if benefits were to be paid out 100% under the terms of the policy?
  • What is the present dollar value of your policy?
  • What other things will impact upon the valuation of the claim for settlement? This could be mortality or morbidity.
  • What amount of money do you need to live on while you are unable to work?
  • If you were still able to work, what would your income be - including benefits, like retirement fund matching, health care insurance coverage, and all perks.

The insurance companies understand full well the attractiveness of the lump sum and the appeal of not having to worry about investigators, paperwork and requests for information that never end. They count on this to move the negotiations quickly and arrive at a settlement that results in the lowest possible payout.

Reaching a settlement can be beneficial in several ways.

Quicker resolution of your long-term disability insurance claim means you will receive your benefits sooner. This can alleviate the stress of meeting your financial obligations.

Reaching a settlement also means you will spend less time fighting about your benefits and more time focused on your recovery and not living for your claim.

A settlement also gives you some control over the outcome. It is always your decision on whether to accept a settlement or not. With the appeal process (following a denied or terminated claim under ERISA) and the court (if that is the last recourse available), the decision and outcome are uncertain.

A Settlement Means No More Surprise Interviews, Surveillance or IMEs

Once a settlement has been made on a long-term disability insurance case, the agony of wondering when the insurance company will stop paying or when you can stop going to see insurance company-paid doctors for evaluations is over.

Aggressive Reputation in Settlement Negotiations

At Frankel & Newfield, P.C., we aggressively represent our clients. Our adversaries and clients are aware of this reputation, and it serves our clients well. Insurance companies know we will fight back for our clients. As a result, they sometimes prefer to settle out of court to resolve the case.

We know the process and have worked with the money people at many of the disability insurance companies. Knowledge of the process can be powerful during this important time.

In some instances, long-term disability benefits claims can be settled or resolved without appeals or trials. We are skilled lawyers and negotiators, and our experience and knowledge in the economics of disability insurance benefits provides us with the ability to settle cases in the best interest of our clients, even when we are presented with difficult or complicated situations.

We often have success in getting substantial long-term disability benefits settlements on behalf of our clients.

Nationwide Practice | Results-Focused Representation

Call 877-583-2524 or contact us online to schedule a free initial consultation. We are based in New York and represent clients nationwide.