How Should I Decide Whether to Take a Disability Lump-Sum Buyout?

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How Should I Decide Whether to Take a Disability Lump Sum Buyout?

Deciding on whether to accept a lump-sum buyout over monthly payments is an important process that could significantly change your future. One decision could be advantageous and another damaging depending on your current and future financial situation. For the most part, insurance companies offer lump-sum buyouts to save their company money. To see if a lump-sum buyout is right for you, you can talk to a Pennsylvania insurance lump sum buyout lawyer to figure out your safest option for disability benefits

Risks and Advantages of Lump Sum Buyouts

There are pros and cons to almost any major financial decision. Leaning on the side of caution is usually the best way to approach the decision-making process when it comes to insurance deals 

The first advantage to taking a lump-sum buyout for disability insurance is no longer dealing with progress reports or physician statements. Many disability insurance companies will not let you off the hook after giving How Should I Decide Whether to Take a Disability Lump Sum Buyout?you benefits. They will continuously check your qualifications for a disability. Physician statements require you to visit a doctor chosen by the insurance company to be assessed for a disability. Many people worry about whether they will lose benefits after this. 

The risks of taking a buyout involve financial losses. At least with a monthly sum, you are guaranteed to receive future payments as long as you remain qualified for a disability. Monthly payments serve a function of financial management, but buyouts can be spent within a short period if finances are not kept in order.  

Not accepting lump-sum buyouts means you are at risk for losing benefits, but will not run out of money as long as you still qualify for disability insurance. Accepting a buyout means you run the risk of running out of money at a faster rate. Whether you qualify for a disability or not, you will not be able to receive future payments once you run out of your lump-sum. 

How Do I Decide Whether to Accept the Lump Sum?

Before making this decision, look for answers to any questions you may have from an experienced attorney. An attorney can help you calculate how much disability insurance you will have depending on which deal you decide to take. This can help you compare prices, in the long run, to see if accepting a lump-sum buyout would be risky. 

It is also important to check whether taxes are involved with lump-sums, whether you can undo the deal with the insurance company, and if you will lose public benefits. All of these factors can add up to you losing money if you accept the lump-sum without first assessing everything else that comes with the deal. 

Disability Lawyer in Pennsylvania

Try talking with a Pennsylvania individual disability insurance lawyer if you have been offered a lump-sum buyout from your insurance company. Call Edelstein & Nelson today at 1-800-300-0909 for a consultation. We will examine your financial situation to determine the best option for you and will help you weigh the different risks and benefits