How to Negotiate a Disability Insurance Settlement

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How to Negotiate a Disability Insurance Settlement

How to Negotiate a Disability Insurance Settlement

Some disability insurance companies will offer a settlement in the form of one lump sum payment. This can be a life-changing decision because once you agree to the lump sum, it might be difficult to obtain monthly benefits. Knowing what to expect and how to negotiate a better offer may help with this process. You can also work with a Pennsylvania insurance lump sum buyout attorney to strengthen your case.

Pros and Cons of a Lump Sum Disability Settlement

Some disability benefits insurance companies will offer you the choice between a lump sum payment and monthly payments. A lump sum can be tempting, especially when you find yourself struggling financially. Exploring the pros and cons of a lump sum How to Negotiate a Disability Insurance Settlementsettlement may help you decide whether to choose a lump sum or continue with monthly benefits.

The main benefit of a lump sum buyout is having the money upfront. In other words, you will be paid a large amount of money sooner rather than spread out monthly payments. This can be helpful when you have specific financial goals. Instead of waiting months to build up to your financial goals, you can check off those goals right away.

The cons of accepting a lump sum buyout revolve around how you use the lump sum and what you will be losing. In most cases, accepting a lump sum means you will be forfeiting monthly payments. This opens the door to running out of money, depending on how quickly the lump sum is spent.

You will not have the security of continued monthly disability benefits if you accept a lump sum. Not only that, but many lump sums are less overall money compared to the total money provided with monthly payments over time. If you added up a year of monthly benefits and compared this to the lump sum, the monthly benefits are likely greater.

How to Negotiate Your Disability Settlement

You do not have to settle for less when it comes to a disability settlement or agreement. When it comes to negotiating disability insurance, knowing what you can negotiate is important. The following policies and terms can be negotiated with the disability insurance company:

  • Choosing the own occupation or any occupation disability definition
  • Limits for disability benefits duration
  • Whether benefits are protected from inflation
  • Whether pre-existing exclusions apply to your disability
  • Whether other earnings are offset
  • The waiting period

Some of these disability insurance policies can be complicated and confusing to navigate. Consider contacting a Pennsylvania disability lawyer if you have any questions or concerns about this process. An experienced disability lawyer can help you negotiate the most ideal disability insurance terms for your unique situation. This may improve your finances in the long run.

Call Edelstein & Nelson Today

Deciding whether to go with monthly disability benefits or a lump sum buyout can be a difficult decision. Talk to a Pennsylvania individual disability insurance lawyer to explore your legal options for disability insurance. Start by contacting Edelstein & Nelson today by dialing (800) 300-0909 for a consultation about your unique situation. Our legal team is prepared to help you figure out what steps to take for disability insurance.