Lump Sum Buyout Of Disability Benefits
Thursday, April 26th, 2012
After years of worrying about having a claim terminated or living with the intrusions of field visits and required medical exams, some claimants prefer to obtain a lump sum buyout of their disability insurance benefits. This is the phrase used to describe the payout of the remaining disability insurance policy in one lump sum payment.
A lump sum payment is helpful for individuals and families who are able to manage the money in a planned manner. In a perfect world, the claimant invests the money so that it generates a steady income. The freedom from worry allows claimants to focus on getting better, if that is possible, or at least lessens the worries about the intrusive nature of on-going investigations from insurance companies.
Other times, an insurer will approach a claimant who has been on claim for years, and unilaterally offer a buy out of the remainder of the policy, at a steep discount
Still other times, insurers will create a situation whereby they suggest a claim is going to be terminated, but prior to termination, will be interested in pursuing a compromise of the claim.
Can you get a lump sum buyout of your disability benefit payments? It depends upon a host of factors.
These different scenarios all present different dynamics for a claimant, and cry out for assistance from an experienced disability insurance attorney. Given the value of the entire policy, and how dependent many claimants are upon receipt of their benefits, it is wise to consult with an experienced disability insurance attorney who has experience negotiating and obtaining lump sum buyouts.