Negotiate A Disability Buyout Settlement
Disability Insurance companies sell long term disability policies with the hope that they will never need to pay monthly benefits to an insured. Once an insurance company becomes obligated to pay an insured monthly disability benefits, the insurance company is losing money. In an effort to cut their losses, most disability insurance companies are always interested in the opportunity to buy-out an insured’s disability policy for a one-time lump sum amount.
Our disability lawyers have established relationships with the people at each disability company that make the decisions on disability buyouts. Since 1979 we have helped our clients to recover hundreds of millions of dollars in disability benefits. We always offer a free immediate phone consultation to discuss how we could help you. We work closely with actuaries, financial consultants and treating physicians in order to maximize a buy-out offer.
How Are Lump-Sum Buyouts Calculated?
Every disability company has their own methodology and formulas for determining the value of an insured’s disability income policy. As a result of handling buy-outs with almost every disability insurance company, we are well aware of each company’s valuation methods. There are multiple factors involved in determining the value of an insured’s disability income policy. Some of the factors that insurance companies will consider are:
- the life expectancy and mortality of the insured;
- the current corporate bond rate;
- the likelihood that the insured will remain totally or residually disabled;
- the amount of insurance company reserves for the specific policy;
- the present value of future monthly disability benefits;
- the age of the claimant and years remaining on the policy
In every lump-sum policy buyout, the insurance companies will make an offer that is discounted to present value dollars. This means that if the future value of an insured’s disability payments in 10 years would be $960,000 ($8,000 a month multiplied by 120 months), then the present value is the amount of money an insured needs today at a stated interest rate in order to equal $960,000. Assuming an $8,000 monthly benefit, 120 months of remaining payments, and an interest rate of 4%, then the present value of $960,000 would be approximately $790,000. This means that if you deposited $790,000 in the bank today and received an interest rate of 4%, then you would have $960,000 ten years from today if you never touched the money.
The present value amount is always less than future value. Insurance companies only offer settlements based upon the present value and they will never pay 100% of the present value as there is no financial benefit for them to do so. They will however, use the previously stated factors in arriving at a buy back amount.
Companies Offering Disability Buyouts
Disability insurance companies are not required to offer a lump-sum buyout of a disability, yet of the 40 different companies there are some that do so more than others. The ten most common disability companies that will consider a disability buyout are:
- Cigna (Life Insurance Company of North America)
- Unum
- Prudential
- Lincoln Financial (Acquired Liberty Mutual in 2018)
- Hartford (Acquired Aetna Disability in 2017)
- Sun Life Financial
- Disability Management Services (“DMS”)
- The Standard
- Met Life
- Trustmark
When Does a Disability Buyout Make Sense?
Lump sum buy backs are not advisable for everyone. However, they often make sense for an insured for the following reasons:
- cash received is often tax free to be invested as you desire;
- no risk of future denials or uncertainty of upcoming benefits;
- monthly benefits end at the death of the insured;
- cash received now can be used for estate planning or new venture;
- no longer subject to insurance company solvency;
- option to try a return to work without insurance company scrutiny.
If you are interested in pursuing a lump-sum disability buyout contact Attorneys Dell & Schaefer to make sure you are receiving the maximum buy-out possible.
Resources to Help You Win Disability Benefits
Disability Benefit Denial Options
Submit a Strong Appeal Package
We work with you, your doctors, and other experts to submit a very strong appeal.
Sue Your Disability Insurance Company
We have filed thousands of disability denial lawsuits in federal Courts nationwide.
Protect Your Benefits
Get Your Disability Application Approved
We help claimants throughout the entire application process.
Prevent a Disability Benefit Denial
We manage every aspect of your disability claim following claim approval.
Negotiate a Lump-Sum Settlement
Our goal is to negotiate the highest possible buyout of your long-term disability policy.
Disability Company Reviews
(656)
Showing 8 of 656 Reviews
Sedgwick
Don't trust them, they like to play games
They suck the life out of people that need help. They falsely advertise for helping people that they care. Sorry to tell you it's all about money, they do not care for any... read more >
New York Life
Lyme Disease Disability Claim Denial
I have had repeat claims for genuine medical leave and they have repeatedly been denied by NY Life. I have even been diagnosed with Lyme and going through treatments and t... read more >
New York Life
Disappointed with NY Life Disability Excuses
I am beyond disappointed with NY Life Disability Insurance’s handling of my father’s claim. My father, a 66-year-old man who has suffered two strokes and continues to ... read more >
New York Life
New York Life is a joke!
This company sucks when it comes to disability claims. They are slow at processing stuff, then they always say they didn't recieve the doctors information. You spend your ... read more >
MetLife
They FULL OF ****
MetLife is what everyone on this review are saying. They don't contact you to let you know what's going on with your claim or to let know you need additional info. I had a... read more >
Sedgwick
Worst Company Ever
If something happens to you at work you better hope you die, my son is going through HELL because this company is handling his work comp. NO RETURN PHONE CALLS, TEXTS, EMA... read more >
MetLife
MetLife for disability? Avoid the surgery unless it's life-threatening
The worst company I ever dealt with, never received a call from my claim manager.
Reliance Standard
Short Term Disability Claim/Inconsistent to NO Communication
When I did call & reach a live person they were kind & helpful. The person assigned to my claim left one phone message & I have not spoken to her since. Information she re... read more >
Answered Questions by Our Lawyers
(35)
Showing 8 of 35 Answered Questions
Q: Ameritas Disability Claim Buyout?
A: Yes, we have negotiated buyouts for claimants covered under disability insurance policy with Ameritas in the p... Read More >
Q: Can receiving a Unum group LTD benefit settlement lower my SSDI benefit?
A: Jeff,The acceptance of a Unum Lump Sum Buyout offer should not reduce your ssdi benefit. You should contact ... Read More >
Q: Should I accept the buyout from Lincoln Financial? I have 7 days to decide.
A: Kendra, it was a pleasure speaking with you today. Thank you for reaching out for the free consultation. We ar... Read More >
Q: I accepted and deposited a lump sum long term disability payment installment for underpayment from Guardian. Can they ask for money back if I try to work again?
A: In most lump sum settlements, once you receive a buyout then you can attempt to do anything you want once the ... Read More >
Q: Do you help with negotiating lump sum settlements of policies?
A: Marcella, yes, we do assist in negotiating lump sum settlements of policies. Northwestern Mutual is very selec... Read More >
Q: Will Principal harass me if I don't accept their buyout? And, is it standard for a buyout to be lower than the full benefit paid over time?
A: Jan, I have not experienced retaliatory actions form Principal for refusing a buyout offer. As to your second ... Read More >
Q: Would it be better to continue to receive benefits from Lincoln Financial or should I seek a buyout?
A: AJ, I am sorry to hear of all the medical issues though I am happy to hear that Liberty Mutual has approved be... Read More >
Q: Does Lincoln Financial offer lump sum settlements?
A: Jenn, yes, Lincoln offers buyout. Please contact our office and ask to speak with a disability insurance attor... Read More >
Helpful Videos
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Disability Benefit Tips
(331)
Showing 8 of 331 Benefit Tips
Prudential Lump Sum Disability Policy Buyout Options
If you're a Prudential long term disability insurance claimant who has been on claim for a month or two, you may be interested in getting a lump sum buyout of your insurance policy. But although Prudential does offer this as an option for many claimants, it's never obligated to buy out disability claimants - and when it comes to your lump-sum disability buyout o... Read More >
MetLife Disability Buyout and Lump Sum Settlements are Back
MetLife is one of the top five largest group and private disability insurance companies nationwide. As of January 2016 it appears that Met Life is now interested in considering the buyout of a claimant's group long term disability policy. MetLife has always done buyouts of individual disability insurance policies.For the past ten years Met Life was not interested in buying out the disability policy of a cl... Read More >
Is my disability insurance company required to offer me a lump sum buyout of my disability policy?
Whether you have an individual disability insurance policy or an ERISA governed group disability policy, the disability insurance company's only obligation is to pay you disability benefits on a monthly basis if you continue to satisfy the definition of disability. Some of the disability insurance companies have a business strategy of reducing their long term risk on a disability claim and will offer a lump su... Read More >
Why consider a lump-sum buyout of your disability insurance policy?
If you already are on long term disability, and you're looking for a lump sum buyout, there are multiple reasons to consider a lump sum buyout. No.1 and probably the most important reason is security, and that means security for your family. With long term disability policies, there are no rights to survivorship, meaning, it's not like a life insurance policy where God forbid, if something were to happen to yo... Read More >
How do disability insurance companies calculate lump-sum buyouts?
There are multiple factors that a long term disability insurance company will consider when doing a buyout.The No.1 factor is whether or not the carrier thinks they are going to have to pay you for the maximum period of your disability policy.No.2 is whether or not the carrier thinks whether or not you are going to live till the end of the maximum benefit period.And No.3 is the value of your policy... Read More >
What is a lump sum buyout?
If you are already collecting benefits, we often negotiate lump sum buyouts on behalf of our clients. And a lump sum buyout is essentially a lump sum amount of money which a disability carrier will agree to give you in exchange for you surrendering your policy. Now there is no requirement whatsoever for the disability carriers to buyout your policy and not every single long term disability carrier engages in l... Read More >
Why Must Your Disability Insurance Lawyer Understand Your Disabling Condition?
When it comes to securing your disability insurance benefits, it's vitally important that your disability insurance lawyer thoroughly understands the symptoms and impact of your disabling condition. Doctors can help you create strong medical records, but they're not accustomed to dealing with the rigorous documentation disability insurance companies require. Lea... Read More >
Disability Benefit Denial Reason #5 – Your Medical Evidence is Weak
If you're seeking long term disability benefits from an insurance company, you may be concerned that you're facing an uphill battle. Fortunately, the stronger your medical evidence, the greater the odds that your claim will be approved. On the other side of the coin, one of the most common reasons for denial of long term disability benefits involves too-weak med... Read More >
Dell Disability Cases
(375)
Showing 8 of 375 Dell Disability Cases
Prudential denies and settles long-term disability claim with CPA after CPA becomes totally disabled from chronic cervical neck pain and radiculopathy
Our client, Richard, was employed as a senior accountant with a communications company. While performing work at his home one day, he fell from a ladder and severely injured his neck. His fall resulted in herniated disks in his cervical spine. His pain became chronic and he began experiencing numbness and tingling through his arms and hands. His doctors diagnosed him with herniated discs at C4-C5 and C5-C6, ce... Read More >
Surveillance Video and Independent Medical Examination (IME) Leads to Disability Insurer Terminating Disability Claim After Paying Partially Disabled Insurance Agents Claim For 21 Years
Our client, Richard, was working as an insurance agent when he began experiencing pain in his lower back. After consulting a physician and undergoing a CT scan and MRI, a ruptured lumbosacral disk was discovered. As an insurance agent, Richard understood the importance of maintaining disability insurance and he had personally purchased an individual disability insurance policy, insuring him for both total and ... Read More >
Unum Settles Lawsuit with Florida Chiropractor After Initially Denying Long-term Disability Claim
Dr. G' s individual long-term disability insurance policy with National Life of Vermont (National Life), now owned and administered by Unum, were initially purchased shortly after his graduation from chiropractic college. Although after graduation, he initially worked and apprenticed under other chiropractors, his true desire was to one day open his own practice. With that aspiration in mind, he knew the impor... Read More >
Hartford Buys Out Disability Policy Following Appeal
When our client first contacted our Office he was unsure if he even had a case worth pursuing. After being on long term disability for a year, and still within his "Own Occupation" period Hartford denied his claim for continued benefits based on video surveillance conducted, an in-person interview, and the results of an Independent Medical Examination they had sent him to. By all accounts, prior to denying the... Read More >
Dell Disability Lawyers obtains settlement award for OB/GYN with Unum individual disability policy
Disability insurance attorney Cesar Gavidia shares details regarding a recent settlement award achieved for his client, an Ob/Gyn physician, who had an individual disability insurance policy with Unum. The client ran into difficulty while applying for benefits on her own for 2 main reasons:1) by the time she applied for disability benefits, her medical condi... Read More >
Chiropractor Obtains Lump-Sum Disability Insurance Settlement Despite Wrong Date of Disability
Caution, the timing of a disability claim can mean the difference between having your claim approved or denied. Far too many times I have seen disability insurance claims denied because the claimant either failed to promptly file their disability claim, mistakenly adopted the date which the insurance company claimed their disability began or state an inaccurate date of disability on the initial application for... Read More >
Federal Insurance Company and former postal worker reach confidential settlement regarding lump-sum disability policy
Our client was a former United States postal worker who became disabled due to a back injury he sustained in an automobile accident in 2003. Several years before the accident, he purchased a disability insurance policy offered by his credit card company, which provided a lump sum payment in the amount of one million dollars if he became permanently disabled. The disability insurance policy was administered and... Read More >
CIGNA lump sum settlement buyout offer obtained for former salesman
Disability Insurance Attorney Gregory Dell was retained to help an industrial salesman negotiate a lump-sum buyout offer with Life Insurance Company of North America (LINA), also knwon as CIGNA Group Insurance.Our client had been on claim for several years as a result of a cardiac condition. His claim had not been smooth as he had previosuly been denied by LINA and was forced to file an appeal in order to ... Read More >
Disability Lawsuit Stories
(765)
Reviews from Our Clients
5 Ways We Help Get Your Benefits Paid
Get Your Disability Application Approved
Our goal is to get your application for disability insurance benefits approved. Applying for disability insurance benefits can be a difficult process and the information you provide is critical. Most disability insurance companies look at your application in hopes of finding a reason to deny your claim. Your disability company will ask you to complete numerous forms, interview you, request lots of information, speak with your doctors and possibly request to have you examined by their hired gun doctor.
Through our experience of having helped thousands of disability insurance claimants, our disability insurance lawyers will guide you through the entire application process and give you the best chance to get your disability claim approved the first time.
Submit A Strong Appeal Package
If your disability insurance benefits have been wrongfully denied, then our disability insurance lawyers know exactly what it takes to get your disability claim approved. You only get once chance to submit an Appeal, therefore every piece of evidence that will support your disability claim must be included. The goal is to win your disability benefits at the Appeal level, but while preparing your Appeal you must consider how a federal judge will review your disability claim if your benefit denial is upheld.
Preparing a strong disability appeal package is an art that requires you to understand how the courts interpret your disability policy language, ERISA regulations / laws, and how to strategically present evidence in support of your definition of disability. We encourage you to contact any of our long-term disability attorneys for a free immediate review of your disability denial.
Sue Your Disability Company
98% of the disability insurance lawsuits filed by our law firm have resulted in either the payment of benefits or a lump-sum settlement agreement. Our disability insurance attorneys have filed ERISA governed and private policy long term disability insurance lawsuits against every major disability insurance company in state and federal courts nationwide and we love fighting for the little guy against the multi-billion dollar insurance company giants.
We have recovered hundreds of millions of dollars for our clients and we would like the opportunity to provide you with a free review of your disability benefit denial. There are many complex factors in a disability benefit lawsuit and the legal battle to win long term disability benefits can be fierce.
Prevent A Disability Benefit Denial
Approval of long-term disability is a continuous process as every disability insurance company will evaluate your eligibility for benefits on a monthly basis. You can never let your guard down and assume that your disability company will continue to pay your benefits for as long as you think you need them.
Our disability insurance law firm offers a reasonable flat fee monthly claim handling service in which we handle every aspect of your long-term disability claim and do whatever it takes to make sure you are paid every month.
Negotiate a Lump-Sum Settlement
Let's discuss if a lump-sum settlement or buyout of your disability insurance claim is both available and makes financial sense for you. Our disability insurance lawyers have negotiated more than five-hundred million dollars in disability insurance buyouts and we know how to get you a maximum settlement. A disability insurance company is not required to offer a buyout and not every disability company offers them.
Questions About Hiring Us
Who are Dell Disability Lawyers?
We are disability insurance attorneys that know how to get your short or long term disability benefits paid. As a nationwide law firm we have helped thousands of disability insurance claimants throughout the United States to collect hundreds of millions of dollars of disability insurance benefits from every major disability insurance company.
Our attorneys have been able to either get our clients paid monthly disability benefits or obtain a one-time lump-sum settlement in more than 98% of our cases. Our disability insurance lawyers have seen it all when it comes to disability insurance claims and we know exactly what it takes for your disability claim to be approved.
We offer disability insurance attorney representation nationwide and we welcome you to contact any of our LTD lawyers for a free immediate review of your disability claim. We also invite you to visit and subscribe to our YouTube channel where we have more than 900 videos and regularly provide tips to help protect your disability benefits.
Who do you help?
Our disability insurance attorneys help individuals that have either purchased a long term disability insurance policy from an insurance company or obtained short or long term disability insurance coverage as a benefit from their employer. We have helped individuals in almost every type of occupation with monthly disability benefit payments ranging from $1,500 to $50,000.
Our clients include all types of employees ranging from retail associates, sales representatives, government employees, police officers, teachers, janitors, nurses, pilots, truck drivers, financial advisors, doctors, dentists, veterinarians, lawyers, consultants, IT professionals, engineers, professional athletes, business owners, and high level executives.
A strong understanding and presentation of the duties of your occupation is essential for securing disability insurance benefits.
Do you work in my state?
Yes. We are a national disability insurance law firm that is available to represent you regardless of where you live in the United States. We have partner lawyers in every state and we have filed lawsuits in most federal courts nationwide. Our disability insurance lawyers represent disability claimants at all stages of a claim for disability insurance benefits. There is nothing that our lawyers have not seen in the disability insurance world.
What are your fees?
Since we represent disability insurance claimants at different stages of a disability insurance claim we offer a variety of different fee options. We understand that claimants living on disability insurance benefits have a limited source of income; therefore we always try to work with the claimant to make our attorney fees as affordable as possible.
The three available fee options are a contingency fee agreement (no attorney fee or cost unless we make a recovery), hourly fee or fixed flat rate.
In every case we provide each client with a written fee agreement detailing the terms and conditions. We always offer a free initial phone consultation and we appreciate the opportunity to work with you in obtaining payment of your disability insurance benefits.
Do I have to come to your office to work with your law firm?
No. For purposes of efficiency and to reduce expenses for our clients we have found that 99% of our clients prefer to communicate via phone, email, fax, or video conferencing sessions. If you prefer an initial in-person meeting please let us know. A disability company will never require you to come to their office and similarly we are set up so that we handle your entire claim without the need for you to come to our office.
How can I contact you?
When you call us during normal business hours you will immediately speak with a disability insurance attorney. We can be reached at 800-698-9159 or by email. Lawyers and staff must return all client calls same day. Client emails are usually replied to within the same business day and seem to be the preferred and most efficient method of communication for most clients.