Many people receive long term disability benefits under an ERISA policy that was provided by their employer. While some people find recovery from their disability and are eventually able to work again, many others can never rejoin the workforce and may depend on disability benefits until they reach retirement age. At some point, long term disability insurers may offer one lump sum payout in lieu of continuing monthly benefits. The decision whether or not to accept such a payout can have many implications and should be carefully considered. It is critical to have a highly experienced long term disability attorney review any payout offers to provide valuable advice on whether or not to accept the payout.
A payout can have many benefits, including the following:
Overall, accepting a lump sum payout can provide a peace of mind that does not come with receiving continuous benefits.
Perhaps the largest drawback of accepting a payout is the uncertainty that the payout offer matches the true value of your policy. Long term disability insurance companies have different ways of calculating offers based on many factors, including expected longevity, whether you may return to work, and the present value of your claim. It can be very difficult for you to know whether the amount is adequate to cover your needs.
Once you accept an offer, there is no going back and filing a claim for more benefits based on your disability. Therefore, you always want to have an attorney evaluate your offer to ensure you do not accept a payout lower than you deserve.
If you have been offered a lump sum payout from your long term disability insurer, you should not delay in reviewing the offer with a highly experienced long term disability attorney in Chicago as soon as possible. At the Michael Bartolic, LLC, we will go over all of the possible benefits and drawbacks of accepting a lump sum payout and will help you weigh your options so that you have the maximum financial support that you need due to your disability. Please feel free to call our office to discuss any ERISA or long term disability matter at 312-635-1600 today.