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 options, proper timing is everything. Learn more about when, why, and how Prudential makes buyout offers to long term disability claimants.
Prudential is not required to offer a lump sum disability buyout.
Even after you’ve been approved for long term disability benefits, you’re not home free. Prudential and other disability insurance carriers evaluate claims on a month-to-month basis, which means that just because you’re eligible for claims in October doesn’t mean you’ll remain eligible in November or December if your situation changes.
Because insurance carriers reserve the right to re-evaluate a disability claim each month, it can take a while for Prudential to want to engage in buyout negotiations. This is especially true if the claimant’s disability is one that is either terminal or temporary, as either option reduces the insurance carrier’s odds of having to pay benefits for years on end.
It is important to understand that lump sum buyouts are always based on the present value of all your future benefits.
When Prudential offers a lump sum buyout, it will calculate its settlement offer by considering the benefits that have already been paid, the benefits that are likely to be paid in the future (discounted to their present value), and the likelihood that Prudential can terminate these future benefits.
For example, group or ERISA policies generally change the definition of “disability” at the 24-month mark, making it difficult for claimants to continue to qualify for benefits after receiving them for two years. Therefore, if an ERISA claimant is at month 20 of their claim, it’s unlikely that the insurance company is going to offer more than the value of a few months of benefits. On the other hand, a claimant who is likely to continue to qualify for disability benefits for the foreseeable future is likely to receive a much more generous buyout offer.
A buyout is not always best for everyone and we are happy to provide a free consultation to discuss all of your options.
Buyouts come with some distinct benefits and drawbacks. For claimants who have been struggling to pay the bills while receiving disability benefits, getting a large lump sum can seem like winning the lottery. Having immediate access to these funds can remove a lot of economic turbulence; and because continued benefits are never guaranteed when the claim is re-evaluated on a monthly basis, taking a lump sum settlement can remove a claimant’s uncertainty that a claim will be abruptly denied.
But those who accept a buyout offer are also giving up some important rights. Once you accept a buyout, you’re no longer able to pursue additional disability benefits from your insurance carrier – in fact, your policy will usually be canceled. This can mean giving up potentially thousands of dollars in benefits over the long term.
Because of these competing interests, it’s important for long term disability claimants to consult with an attorney before accepting or rejecting a buyout offer. At Dell & Schaefer, our legal team has extensive experience in handling Prudential long term disability buyouts, and we can evaluate the specifics of your claim to see whether a buyout is your best option. Just give us a call today to speak with one of our experienced disability insurance attorneys.
Resources to Help You Win Disability Benefits
Get Your Prudential Disability Application Approved
Prevent a Prudential Disability Benefit Denial
Negotiate a Prudential Lump-Sum Settlement
Our goal is to negotiate the highest possible buyout of your long-term disability policy.
Policy Holder Rating
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I’m extremely satisfied with the experience I have had with this firm from day one. The lawyer who has handled my case, Alex, is very efficient and attentive to all my questions and concerns. They are always aware of how my case has gone and they care about my health. I feel optimistic with them because they are very attentive during the process of my claim. I would not hesitate to recommend families and friends if in any situation they need their services. Kathleen as well has been very well and assisted me with this case. I highly appreciate everything they have done for me.
It’s unfortunate when disability insurance companies come after older disabled policyholders just to help their bottom line. It can be a living nightmare the damage they can do to a family. Dell Disability Lawyers are polite, understanding and knowledgeable. They call you back and answer any question you have no matter how unimportant it can be. The amount of stress they took off of myself and family was incalculable. I recommend them highly to take care of any disability case whether it be filing for benefits or reversing a claim decision. They are outstanding.
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Without them my LTD company was dropping my plan with me still suffering from my accident, even with doctor’s statements I’m still disabled. The LTD company didn’t want to advance my policy to the next stage of years of pay. Dell Disability Lawyers saved my policy, and helped to enforce the LTD company’s own policy (for its policy holder, me) that I would be covered still under the LTD policy I had paid for at my previous job, when my accident occurred. These lawyers know what they are doing and can help you too. LTD companies will try to drop you when you still need coverage just because they don’t want to pay on your policy anymore. Don’t let them break contract with ya because they are trying to get out of it. Hit em with legal action to ensure the continuation of your policy you paid for. Dell Disability worked very well for me and continue to do so.
I was denied long term disability benefits from The Hartford after being on it for years. I found Dell Disability Lawyers after doing research online. In a matter of days they responded and explained to me everything that would be done. Dell Disability Lawyers were able to settle my suit against The Hartford very quickly and responded to me quickly. I would definitely recommend this team of lawyers for anyone that is fighting for their disability insurance.
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This law firm is the best so far. MetLife denied me two times, they appealed two times for me and they won of course. So if you are on disability and want a chance at winning your case use this firm Dell disability lawyers, kind courteous understanding and they get the job done. You won’t be disappointed.