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Why consider a lump-sum buyout of your disability insurance policy?

  • Long Term Disability Lump Sum Buyout or Settlement Information

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 you, these benefits will continue to be paid.

Many people who consider a lump sum buyout do it because they want to guarantee for their family that they are going to get a stream of payment for the next 10 or 15 years in the event that something were to happen to them. The other reason that people consider buyouts is that they are sick and tired of dealing with the disability insurance companies and they know that if they sever the relationship, they are free to do whatever they want, they don’t have to be accountable to the disability company, they don’t have to worry that any moment the disability company could decide to deny their benefits.

There are 373 opinions so far. Add your comment below.


My LTD plan is an ERISA plan. There is a 2 year clause “own occupation” then that states “any gainful occupation”. What does this mean?


Do you have to wait for the insurance co to offer a buy out or can a buy out be requested prior to the two year clause in the LTD policy?

Attorney Greg Dell:

Jim, you need to see if your disability policy defines “any gainful occupation”. Most disability insurance policies will define “any gainful occupation” in the policy.

Attorney Greg Dell:

Jim, most insurance companies will not offer a buyout if you have a policy that will change from “own occupation” to “any occupation”. You do not have to wait two years to request a buyout, but you should be aware that disability insurance companies are not required to offer a lump-sum buyout.


Yes I am on disability and an insurance company offered by my former employer approved me for long term disability insurance. Now that my two years are up, the social security approved my lump sum and my payments. The problem is that I was so much in debt for not working for almost three years, I owed alot of money and I spent all of the lump sum that I was to pay back the insurance company. What will happen now, will they garnish my social security check and my kids too?

Attorney Greg Dell:


The disability insurance company cannot garnish your social security disability check. They can stop paying you any further benefits and attempt to sue you to recover the overpayment.


I was receiving LTD payments for 22 months when the company (MetLife) sent me a letter denying my claim because I “failed to participate or cooperate with vocational rehab”. I was in an online program to advance my degree so I could find work as an RN that didn’t require 12 hour shifts and lifting, since I herniated a disc at my last job. I WAS participating and had completed 2 terms when they denied me because I hadn’t completed the program (40 units/18-24 month program) in 12 months. When I signed a contract for 12 months to be re evaluated as needed, I thought I needed 20 units… not 40!
I have filed an appeal. Do I stand a chance? I cannot work as a nurse with my disability… they know this. I am hopeful they will re-open my case and I can get a lump sum and be done with them. Is this even possible? I am 55, my policy says they will pay until I am 65 if I cannot find employment paying 60% of my pre-injury wage.

Attorney Greg Dell:


The rehabilitation clause in the MetLife disability policy is often a trap. You should contact us for a free consultation to discuss your appeal. If you lose your appeal, then you may be able to obtain a lump-sum buyout through the filing of a lawsuit against MetLife.

Clarence Jones:

Unum offered me a buy-out. My benefits will stop in 2018. If i take buy-out will it affect my SSI disability payments? Should I take taxes out now, or wait until next year’s taxes?

Attorney Greg Dell:


Most buyouts have no affect on SSDI payments. You mentioned SSI payment and I don’t know if a buyout will jeopardize your SSI payments. You should ask the SSI administration for an opinion so that you don’t have any problems. You are required by law to pay taxes during the year in which you receive the money. Contact us if you would like any assistance with your Unum buyout offer.


If a person were to take a buyout, I’m assuming it would all come at once, thus “lump-sum”. If 2, 3, or 5 years from now a person’s condition improved to the point that they could go back to work, would they have to pay any money back?

Attorney Greg Dell:


Great question. Once a claimant accepts a lump-sum buyout they sign a release and surrender the disability coverage. The claimant could technically start working the next day without any penalty or obligation to repay any funds. The claimant no longer has any disability coverage under the policy that has been bought out for a lump-sum.


My doctor’s office made a mistake on an APS. MetLife terminated my LTD saying I could go back to work. The doctor’s office called them to report the error and wrote an appeal letter for me. Is that good enough or what do I do now?

Attorney Greg Dell:


With the limited information you have provided, it is very hard to answer your question. I can tell you that the ERISA appeals we submit are far more extensive than the actions you have taken. If you call us, then we can discuss your options.

Regina Moore:

I was just approved for disability through my hearing with ALJ. I know I will be getting retroactive pay. I am with Reliance Standard/Advocator Group and I was wondering if you have any advice as to applying for hardship or do I call them to see if they will want a lump-sum buyout? I also was wondering if the check would be sent directly to me or them for the retroactive pay? I am not for sure if I understand the difference in backpay vs. retroactive pay.

Attorney Greg Dell:


Any payment from SSDI for approved benefits will be sent to you. If you have an overpayment from Reliance, then you are required to send the SSDI funds you receive back to Reliance for the amount of the overpayment, if any.


Can you request a LTD (Erisa Covered) buy out from your LTD carrier? I have been on LTD for two years and was recently awarded SSDI but the games that the LTD carrier plays is exhausting and stressfull to my condition.

Attorney Stephen Jessup:


First and foremost, it depends on the insurance carrier. Some carriers do not offer buyouts at all. For the ones that do, each case is reviewed individually using various criteria, and in some cases the carrier may determine that you are not a candidate for a buyout. Please do not hesitate to contact our office if you would like a free consultation with one of the disability attorneys as to how we may be able to assist you.


I was wondering if I don’t take the lump-sum offer from my LTD carrier, can they turn around one day and still cancel my claim? I have been on claim for 10 years and the policy is own occupation.

I’m unsure about taking the offer… with interest rates as low as they are I could easily run out of funds before I die. My benefits are payable for life.

Edward Soucek:

My LTD carrier MetLife did an account audit last January 2012 finally this August 2013 they tell me that I owe them 20 months of back offset at $327.00 due to me collecting my company pension. The amount due is a sum of $6,500. in which I can`t pay, because I’m in the middle of a chapter 7 case. Can this situation be corrected by letting MetLife take double of the offset from the 1318.00 being paid to me instead of the lump sum? I would pay $654.00 and then receive $664.00 for 20 months.

Attorney Stephen Jessup:


I think there is a strong chance that they will agree to this arrangement. I would recommend that you put the request in writing.


Mr. Greg,

My wife suffers from Multiple Sclerosis (MS); her LTD benefits were granted a couple of months ago. She will get monthly payments of $5000.00 for the next 157 months. Is it too soon to contact our insurance company (The Standard) to ask for a Lump Sum buyout on the policy?

I have been watching your very informative videos. Thank you so much.


Attorney Stephen Jessup:


Most insurance companies will require at a minimum two years of being on claim before they will entertain a lump sum buyout of a policy. This is due in part to waiting to see if the disability continues into any “Any Occupation” period, the receipt of SSDI benefits and other factors.


What benefits do you lose when you take a settlement from LTD & you’re on SSD?

Attorney Stephen Jessup:


You lose any future rights under the LTD policy, and possibly any other ancillary benefits you received on account of being on LTD (health insurance, life insurance, etc).


Thank you, does taking a lump sum from LTD affect your SSD in any way? Do you have to report a settlement from LTD to SSD?

Attorney Stephen Jessup:


If your LTD benefit is taxable income, chances are the SSA will become aware of it and seek clarification. For additional inquiries as to how the SSA will review the information please consult with a Social Security Attorney.


I just switched doctors and informed my LTD company about it, they in turn sent me new forms for the doctor to fill out and paper work for me to fill out. But the last page in my papers is a form for me to sign similar to agreeing to LTD that they may pull my medical file, credit report/history, financial institution papers and so forth. Are they really allowed if I sign to pull my credit report/history and all my financial institution papers?

It just feels wrong for some reason.

Attorney Stephen Jessup:


We often limit the scope of the authorizations, with specific attention to the provisions regarding financial information. If you do black it out on the authorization make it clear to the carrier that you will provide any needed information as it relates to financial information necessary for the review of your ongoing claim for benefits.


My husband has been on LTD (The Hartford) since December of 2007. In January of 2010, he was approved for SSD. In September the LTD company sent requests for more updated medical. Long story short, they said that my husbands primary care doctor’s paperwork made it look like he could work part time. He is sicker and more disabled now than he was when he first went out on LTD. 2 weeks ago, his PCP did his annual, new blood work and not only filled out the paperwork again clarify the severity of my husband’s disabilities and the permanence of them but also sent a letter cementing those facts as well as his extensive list of medications he is on. I spoke to the LTD company last week and the analyst handling his claim said she has sent his Medical info to (Clinical) and she has no clue what the end result is going to be.

If they cut my husbands LTD, we could very well end up homeless. All this stress of waiting and worrying is really messing with my husbands INR and health.

There is more than ample proof of my husbands permanent disability. If they stop his payments, do we have any recourse?

Attorney Stephen Jessup:


Long term disability benefits are unfortunately never guaranteed, so there is nothing that would constitute “ample proof of permanent disability.” If Hartford were to cut the benefit your husband would have to undergo an administrative appeal process. Please feel free to contact our office to discuss how we may be able to assist you.


Hello, I have been on LTDP with Metlife since 2002, does MetLife offer buyouts to its poliy holders? Thanks.

Attorney Stephen Jessup:


MetLife does not currently negotiate buyouts of uncontested claims.



I am on LTD with the Hartford, and have gotten married since receiving LTD. Does that affect my LTD payments from the Hartford?


Attorney Stephen Jessup:


It shouldn’t. Typically your benefit is based on a certain percentage of your pre-disability earnings; as such a change in marital status will not affect that.

Melissa Elkins:

I was hurt at work and diagnosed with RSD, I have Long Term Disabilty I carried through the Company and I have been on SS Disability since 2008, I have RSD in my whole body now and I am getting ready to undergo surgery #16. My insurance is thru Liberty Mutural, do they do buyouts? I now recieve monthly payments, but would consider a buyout from Long Term.

Attorney Stephen Jessup:


Liberty Mutual is not known for offering lump sum buyouts on uncontested claims. However, that is not to say they would not consider the possibility. Please feel free to contact our office to discuss how we may be able to assist you.


Hello I have been on LTD from Aetna since July 2013 for Mental Disorders. I only have 24 months, can I do a buyout?

Attorney Stephen Jessup:


Aetna will more than likely not offer any buyout due to the fact your claim is limited by a 24 month benefit limitation provision.


I am on LTD. I get $5,000 a month. I have been on it for 2.5 years and have 5 years left until the claims end. I will be 65 years old. They offered me a settlement of 1 year ($60,000). Is this a fair settlement?

Attorney Stephen Jessup:


One year of benefits when you have a possible five years’ worth of benefits does not seem like a fair settlement amount. Please feel free to contact our office to review and discuss the buyout offer and how we may be able to assist in securing more.


I have been on a Hartford ERISA policy since May 2009. Also receiving SSDI since same time. Hartford pays me a bout $5200/month. There are 123months left on the policy equal to about $680,000 total. I am totally disabled from any occ per SSD. I will never return to work but I could live well into my 70’s who knows.

Anyway, prior adjuster was very nice and verbally said they might consider a lump sum. She claimed they had a dept for this and they need more info which I supplied together with my doc. They wrote back they I continued to meet def of disability under policy. I hadn’t heard anything so wrote a letter to see if I could get it started. Suggested IRS discount rate of 2.2% to get ball rolling. New adjuster called and lm for me to return his call to discuss. When I called back he just said Hartford doesn’t offer lump sum. Should I do anything further? Would like lump sum but don’t want to give benefits away.

Attorney Stephen Jessup:


Hartford does consider lump sum buyouts, but only on a case by case basis. Please give our office a call so we can discuss your situation further and see how we may be able to assist you in securing a fair buyout.


Does Guardian offer buyouts? Also, is there any risk in asking for a buyout (UNUM) as far as increasing surveillance or other techniques of theirs?

Attorney Stephen Jessup:


Each company evaluates claims for buy outs on a case by case basis. Please feel free to contact our office to discuss how we may be able to assist you in securing a buyout.



In a previous reply above you stated that MetLife does not offer a Lump Sum on a LTD policy.

I heard from another attorney today that MetLife does offer Lump Sum payouts. I explained to the attorney that I saw on your website that MetLife does not.

Mine is an ERISA policy that I have been on for over 4 years now. He insisted that they do offer Lump Sum. I am confused.

Attorney Stephen Jessup:


In our experience, MetLife does not negotiate lump sum buyouts of ERISA LTD policies when the claim is not being contested (denied/litigated). By all means inquire of the other attorney as to his experience in negotiating them.


My husband has been on long term disability for over 2 years (Unum) and now considering asking them for a lump sum buyout. Will this affect his pension and health benefits, since he is still considered employed? He still receives his health coverage through his group plan which is important and necessary. Thanks.

Attorney Stephen Jessup:


Unum would not be responsible for, nor would they most likely be able to advise you at all regarding the status of pension, health benefits or any other ancillary benefit provided by the employer. You will need to consult with HR as to what would happen with same. Furthermore, Unum will not typically negotiate any lump sum buyout until there has been a SSDI determination (with any applicable overpayment satisfied) and a transition from the “Own Occupation” to “Any Occupation” standard of disability.


Thanks Attorney Jessup,

Just a few more comments, he is receiving his SSDI. Unum started this process about 2-3 months after he was approved for the long term disability. At which time, once he receieved his lump sum from SS, we had to reimburse Unum. So I guess I need to contact his HR about health benefits and pension.

Attorney Stephen Jessup:


Definitely contact HR. If there will be no issue as it relates to the aforementioned benefits please feel free to contact our office to discuss how we could assist in securing a buyout of your husband’s claim.


I was injured at work in August of 2008. WC covered for a while, but when I failed to improve any they dropped me (quite a mess of screw ups). LTD then picked up until now (May 2014). I have had failed attempts to get on SSD and at this point LTD is once again requesting another try at SSD, or the option of taking a lump sum. I had been receiving 1606.00 per month from LTD. I had 2 dependents under 18 at the time I was injured (19 and 23 now), and the LTD lump sum I am told will be 75,000. I will be 49 this year. Another family member received a similar offer from their LTD while they already had SSD and I have heard that they received close to 5 years worth of funds from LTD (at the same pay rate, but they are 8 years my senior, with no dependents). Is 75,000 a fair amount (3.89 years)? Am I able to continue on with applying for SSD after I take the lump sum?


I have looked all through these comments and now I am confused as to whether or not MetLife offers lump sum buyouts? I have another 20 years of benefits which will take me until I am 65. I have been on LTD for 3 1/2 years already and I’m also on SSDI and I’m in the special handling unit due to the fact that it has been deemed unlikely that I can ever work again. I’m interested in a buyout and I’m curious to see if you think that MetLife would work with me to do a lump sum buyout. Thank you, Sherry.

Attorney Stephen Jessup:


Please feel free to contact our office to discuss the buyout offer further. With respect to you last question, yes, if you do accept a lump sum buyout with your LTD carrier you are still able to pursue for SSDI benefits.

Attorney Stephen Jessup:


In our experience, MetLife does not negotiate lump sum buyouts of policies on uncontested claims.


I became disabled June 2013. I qualified for short term disability which turned into long term disability, took Lincoln life 3 months to approve that. Now they have called me and have offered me a lump sum payment that would take it up to December 2015 when my ltd would end. I’m now waiting for a answer for Ssd for approval or denial. My question is will I have to pay anything back to the ltd if I take this lump sum? If so why if it was supposedly based off 60% of my income and now being told that I may have to pay back overpayment? How could any of this be if ltd that was given to me was based off the income I was earning when becoming disabled? Is it worth taking the lump sum? Or just taking the monthly payments, because I’m afraid If I say no that they will find a reason to cancel my LTD. I’m just confused on how any of this works or how it will affect me in the long run knowing that I will have to live on a fixed income for the rest of my life.

Attorney Stephen Jessup:


If they waive their right to overpayment for SSDI as part of the settlement then you would not be obligated to repay them any money received from the SSA. Please feel free to contact our office to discuss the offer before you potentially waive legal rights you have under the policy.



I have been on LTD (ERISA) since 1992 and was receiving about $1000/month. Small amount. Ins. Co. cancelled my payments in 2012 and 2nd appeal has just been denied. I am considering filing a lawsuit as I am unable to work, but am SO poor and now cannot afford medical treatment that I need.

Have been told by a lawyer that it can take THREE(!) years! Can this be so? I am currently 57 years old. I am incapable of working, but hate their tactics and their constant harassment of me, my doctors, etc. The stress of all of this is causing of course lack of sleep, anxiety, headaches, in addition to painful physical challenges (I use a wheelchair etc.).

I understand that everything had to be submitted in the appeals process. If I file suit will the harassment continue?

My main question:
Can they continue to surveil me, or is the harassment hopefully done? I rarely leave my home, but when I do I am paranoid.

Thank you so very much.

Attorney Stephen Jessup:


Unfortunately, litigation of ERISA disability cases can take several years before there is a resolution in the courts. However, the case could be resolved in advance of an actual trial date by way of lump sum settlement at mediation. For purposes of litigation under an ERISA governed disability policy, after a final denial of benefits is rendered by an insurance company the administrative record (which a judge will limit review to for purposes of trial) closes and no new information can be added to the record by you or the insurance company. As such, I would not expect your insurance company to conduct any additional surveillance.

Please feel free to contact our office to discuss how we may be able to assist you in filing a lawsuit on your behalf.


My wife and I currently have a long term group policy through her former employer. The employer has decided to stop paying premiums on the policy now and everyone retired has the option of converting the policy to an individual policy and paying much higher premiums or doing a buyout on the 14 year old policy. The policy is only paid up if it has been in force 30 years and the person is over age 65. We do not wish to pay monthly premiums as they will rise about 450% per month over current premiums and continue until death or until the policy is used. The buyout amount will be up to $50,000. I’ve looked at the premium limits on Schedule A if we itemize and include the premiums as a medical expense subject to the 7.5% exclusion amount. But is there any provision for an amount higher than the yearly limit for a buyout?

Attorney Stephen Jessup:


We would need to see a copy of the documentation in order to determine what your rights may be with respect to a buyout. Please feel free to contact our office to discuss.

Priscilla B.:

I have been receiving LTD (ERISA) with Liberty Mutual since 2012. Would I qualify for a lump-sum buyout? Thank you.


On MetLife LTD since 2011, falling under can’t be gainfully employed. Vocationally rehab said nothing she can do for me. If I ever want to try give her call… Also on SSDI, have 20 more years. Could a buyout be possible?

Attorney Stephen Jessup:


Unfortunately, MetLife has not shown interest in lump sum settlements under ERISA governed policies.

Attorney Stephen Jessup:


Possibly. Liberty mutual reviews claims for buy outs on a very limited basis. Please feel free to contact our office to discuss how we may be able to assist you.

Disabled in FL:

I have a blood clotting disorder that prevents me from working. I am currently receiving partial pmts from UNUM, due to my SSD payments. I paid the difference back in 2012, when I started rec. my soc. sec. disability. It will be three years since I have had SSD and a little over 3 years of LTD. Unum rep told me I would be paid until age 62. I am now about to turn 56 in Sept. Can I ask them for a lump sum payment? Thanks so much.

Attorney Stephen Jessup:


Unum will discuss lump sum settlements of policies on a case by case basis. Also, a typical Unum disability policy provides benefits to the age of 65, so you may have potentially been misinformed by the Unum representative. Please feel free to contact our office to discuss how we may be able to assist you in securing a lump sum buyout of your policy.


So, CIGNA called and offered a lump sum settlement. First, I think it was low. According to what I have read and my calculations, it appears to be at about 9% vs what I have read is typical at 3-4.5%. They said they would send the offer letter out right away. I was told this three times, three different phone calls over the course of a month. but received nothing. They also wanted me to try to apply to SS again, but then told me because my appeal was denied (a year ago) I was done with that process. Another rep from CIGNA started calling requesting medical records. I had to make an appointment in order to get those released. In the meantime, they apparently parked a PI outside who in the four days he was here only saw me drive to a restaurant a mile away and sit with my wife for under 30 minutes, then return home. CIGNA was sent the medical records. By now at least 3 months had passed since the lump sum offer. The paperwork sent from the Dr states: sitting less than 30 minutes, standing less than 30 minutes, walking less than 30 minutes… basically I need to transition very frequently to control pain and stiffness. It is also noted no lifting over 5 pounds. The main issue is my knees, but also chronic pain syndrome and a lot of other related things. Because the recent MRIs “only” indicated thinning and inflammation (defects are present but I guess didn’t indicate without dye? Some real mechanical issues), because I was seen at a restaurant where they claim I sat for 50 minutes when we have proof it was less than 30 (I was told 50 minutes on the phone), and because they say my Dr. says I can sit for 30 minutes (which the Dr. actually says less than), and apparently in my small little VERY remote town where the nearest stop light is over 60 miles way, there is some great job that they claim exists but won’t tell me where, that is sedentary (nothing says I can sit for 40 hours a week!), they denied my continued coverage or the lump sum settlement. It gets even more messed up… CIGNA wrote the termination of benefits letter on the 19th, and called me to tell me first thing in the morning on the 20th. But on the 19th my Dr. received a letter from CIGNA requesting clarification on my restrictions and why I could’t perform a sedentary job. My Dr was unable to reply to this request until the 22nd. So it appears that CIGNA jumped the gun in terminating my coverage? I think it would be different if I had been the one who decided I needed to try to get clarification to CIGNA on the 19th or 20th, but it was CIGNA who requested it but on the same day terminated my coverage. This whole thing seems like very shady practice. Now I must appeal I guess, but also wonder what right I may have to simply call them and demand they make the policy whole again seeing how they requested information and didn’t even allow time to receive it.

Attorney Stephen Jessup:


Please feel free to contact our office to discuss your case. Cigna is not known for retaliatory actions following lump sum settlement discussions, so I would have to agree that there is something going on beyond not receiving a response from your doctor.


I am currently receiving SSDI and my former employer is offering a lump sum payout. Will this effect my SSDI payments?

Attorney Stephen Jessup:


Based on the nature of the payout it could. I would recommend you contact a Social Security attorney to determine your rights and/or liabilities.

Joao Victor:

I’m receiving benefits from LTD (Reliance Standard). It will end this month due to be a mental disability according to Reliance. I have lower back pain, lots of pain in both legs, feet and toes, shoulder, arm, hand and fingers. Now my Dr is referring me to see a rheumatologist, I’m having physical therapy and had epidermal injections and my Drs are considering doing more injections to relieve the pain. I also have a worker’s comp going and off course applying for SSD. I have an advocator group person helping me with the SSD claim.

My question is, if I continue to get LTD benefits, can I ask to negotiate a lump sum before I get worker’s comp and SSD claims resolved? I’m 52 years old, my wife doesn’t work, she has been home for the last 21 years, she is dealing with neurophathy on her both legs and feet for the last 6 years.

Attorney Stephen Jessup:


Your biggest problem is that Reliance Standard is denying your benefit next month based on the mental health condition. You will certainly need to fight them on the closure of the claim for failure to consider the physical conditions resulting in disability. If your claim ends, you really have no bargaining power to discuss any potential lump sume settlement. Please feel free to contact our office to discuss your claim further.


My husband has been receiving LTD since November of 2012. He was finally awarded SSD starting in October of this year. The LTD insurer has advised us we owe all of the back pay. Do you know if Aetna makes lump sum payoff offers or payment arrangements for overpayment? Also, now that he is collecting SSD can the LTD drop him at a later date and if so what options does he have to appeal it? We also have life insurance through Aetna and they have denied him a waiver or premium stating that he is not permanently disabled (which he is according to his doctors and SSD) and said they found 3 jobs he could do. Can we fight this? I’m thinking that after we pay the over payment amount that the LTD is planning on saying the same. What do you recommend we do to fight this? Thank you in advance for taking the time to read this.

Attorney Stephen Jessup:


Aetna will typically make repayment arrangements. In light of the Waiver of Premium denial, you could be right that the LTD portion may follow suit. The denial of the Waiver of Premium can and should be appealed. If that department is not aware of the SSDI award I think it is crucial that they are made aware of the SSDI award. Please feel free to contact our office to discuss your husband’s claim further.


I have a disability with Mass Mutual that is paying 3500 per month over the last 24 months. I have 72 months remaining, does Mass Mutual negotiate lump sum buyouts?

Attorney Stephen Jessup:


From my experience Mass Mutual does not typically offer lump sum buyouts of policies. You can certainly inquire, but the chances are based on history that they will say no.


I am being forced by LTD to file for benefits for my 28 year old who was in a car accident when he was 16 and has never worked. He has been denied when he filed in his own. LTD seems to believe without a doubt will be approved and has already applied the offset. Is there some reason they can be so sure even before I apply for him? Totally confused!

Attorney Stephen Jessup:


Many disability insurance policies will allow for the carrier to offset for SSDI if one fails to file for benefits in a timely fashion. However, since your son has never worked, I am not sure how he would even be covered under a disability insurance policy. Please feel free to contact our office discuss.


I am 61 and have been on LTD for 20 years. My LTD company offered me a lump sum settlement but I can’t take my pension until I am 62 or else I can take it now with a 3% reduction. If I take the lump sum settlement and end my LTD claim, I lose my health benefits and have to pay for them on my own. With four years left to age 65 and then my LTD claim automatically closes, would they come back at age 62 and offer another settlement? I would at least be able to take my full pension at age 62 with or I can stay on my LTD until age 65 and keep my health insurance with my company at no cost to me. I am thinking that the settlement will pay for the insurance I have to buy for my wife for 3 years until she is 65… just to get them off my back or wait 4 more years with no lump sum settlement, and keep full health coverage at no charge to me from my employer.

The big question: with four more years on LTD until I reach the end of my claim, will they still be bothering me and why, with four more years left would they want me gone? Aetna is the insurance company.


Hello Stephen,

I have been on LTD with Sunlife since Nov. 2012 and SSDI since Nov. 2012 as well.

I just received a call from Claims adjuster, stating she received the Medical Review analysis and that they state that I can perform a Sedentary Capacity Job. She also had a vocational rehabilitation job analysis, but they can not find me a job that will be a substantial gainful activity. So I will be transitioned from my own occupation to any gainful occupation and continue to receive benefits.

Can I be offered or can I request a lump sum settlement?

Attorney Stephen Jessup:


The ultimate decision to take any lump sum settlement offer is yours and yours alone. As you can see there are many factors and considerations in your decision. There does stand the chance that Aetna will offer a buyout at age 62, but there is of course no guarantee just as there is no guarantee they will not look to rock the boat between now and the age of 65 if you do not take the buyout. Please feel free to contact our office to discuss the settlement offer in greater detail.

Attorney Stephen Jessup:


You might very well be able to negotiate a settlement. With that being said, Sun Life is known for historically giving very low settlement offers. Please feel free to contact our office to discuss how we can assist you in securing a reasonable lump sum settlement.

John Victor:

Hi Stephen,

Reliance stopped paying me for the mental disorder, but since I asked them to check on the physical illness, they are asking for me to provide them more medical records from my Drs, they are asking more mental records from 1/1/14 and more physical records from 6/1/14. I asked them, since you already stopped paying the mental, what is the reason to ask for more records, and why only from 6/1/14 for the physical records. Their answer was, we already have physical records until may 2014, now we want records from 6/1/14. I”m trying to be nice with them, but I’m very confused as why they want more mental records, and since they already have physical records from past why they want more. I don’t have a problem, I’m just trying to find out if this is a tactic they are using to deny the claim.

They also paid me only half of my benefits (offset the SSDI estimate) even after I was asked to sign a reimbursement agreement to pay back if I was awarded from SSDI, which I have not. I’m still waiting for the hearing, I spoke with my claim administrator and told him that he has a copy of the letter signed by me (which he confirmed) but since I did not asked them back than Reliance can not pay until the hearing from SSDI. I think I can sue them for my money, either I get or not awarded from SSDI, thats allot of money they owe me. I have the document signed even before they start paying my LTD benefits. Any advice will be appreciated.

Attorney Stephen Jessup:


Please contact our office to discuss your case in detail as there are many moving parts to your claim with Reliance.


Hi Stephen,

I have been on LTD, along with SSD and OPM disability pension since 2007. My LTD is with Aetna (underwritten by Hartford). I receive $580 monthly until I turn 65. They just offered me a buyout of $40000. I was wondering what the tax implications would be on that. They said it would be tax free… I don’t know. Also, how would that affect my disability with OPM and Social Security. While I don’t want t take the settlement, I’ just concerned they will try and boot me off, I have many health issues including Lupus, RA, Sjogrens Syndrome, Interstitial Lung Disease, chronic back pain, Fibromyalgia, IBS, etc. Thanks.

Attorney Stephen Jessup:


Typically, if your disability benefit is tax free income, then the proceeds of the settlement would also be tax free. However, since we are not tax professionals I would definitely consult with a tax professional as to same. We have negotiated lump sum buyouts for many insureds, and to date there has been no issue with respect to benefits from SSDI. Without seeing the disability pension information I cannot be certain how it might be affected, though I suspect it would not. Please feel free to give our office a call to discuss in greater detail. There does stand a chance we could negotiate a higher buyout figure for you as well.


I have a LTD policy with Aetna that pays until 05/16 for my own occupation and then switches to any occupation. In the last 10 years I have had surgery on my knee (meniscus) left carpal tunnel, right rotator cuff, and two surgeries to fuse c4,c5,c6,c7. I’m doing okay but physical labor in which I am accustomed aggravates my cervical spine and throws me into bad headaches with some numbness in my arms. The medicine I take, Lyrica makes me very depressed. Aetna is hinting at a lump sum buyout. I know they are only going to want to pay me an amount based on 05/16, but my policy can run until 01/17 or a total of 35 more months. I’m 59 and not getting any better. Should I just continue with the monthlies and prepare to do battle with them in 2016 or try to get the most now and let it go. How much should I settle for? William.

Attorney Stephen Jessup:


Aetna does not typically negotiate lump sum buy outs prior to the expiration of the own occupation period, so for all intents and purposes you will have to continue to “battle” them. Please feel free to contact our office to discuss how we can assist you in the monthly handling of your claim so as to avoid a potential denial into the any occupation benefit period.


So after CIGNA LTD made an over the phone lump sum settlement offer, they then requested more medical information, sent out a PI to watch (who really saw nothing except me driving one mile to eat lunch with my wife for 25 minute and return home… that is all they got in the 4 days they were watching me), and decided to drop my coverage (though nothing has changed… I am gradually becoming worse). I now have to appeal. But they say that due to ERISA Act of 1974, Public Law 93-406 I cannot involve an attorney to help me with the appeal? I have no idea what that is and would need an attorney to explain it! CIGNA did the same thing (only not with the lump sum offer on the table) several years ago, but then I was able to go straight to an attorney for help. Based on what I see online, this ERISA thing is something new? My injury was in 2008 and my policy taken out in 2007, so must I follow ERISA now? And does it really say that on my initial appeal I cannot use an attorney? Or is CIGNA trying to pull one over on me? They go on to state that under ERISA 502(a) I can use an attorney, following an adverse benefit determination on appeal. So I must try to do all this work they want with gathering records and writing an appeal and such on my own first and if I am no good at it I can get an attorney? How are people supposed to deal with this? Very frustrating.

Attorney Stephen Jessup:


That is completely incorrect! You are free to use an attorney at any stage of the disability process, from application, monthly claims handling, administrative appeal to litigation. Please feel free to contact our office immediately to discuss how we can assist you with your appeal.


Hello, I am 47 and been disabled for 9 years already. I called MetLife today and asked for buyout and they said they don’t offer that, I would have to speak to my employer. I feel like they are giving me the run around. Already they have deducted what I get for SSDI for my children. Which I believe is not right and my youngest turns 18 and they will need to increase payments. I don’t see why they deducted what my kids got. Can they deduct what I got for my kids and can they offer buyout?

Attorney Stephen Jessup:


MetLife does not offer buyouts on employer provided ERISA policies. Additionally, most MetLife policies allow for the offset of your monthly benefit on account of DSSDI benefits received by your dependent on account of your disability. If your policy contains such language, then MetLife is allowed to reduce your benefit by same.

James Eldreth:


I am receiving both SSD and LTD. I have been out on disability since Oct 2011. My LTD insurance policy is through CIGNA. My employer paid for the STD policy, and it was optional for the employees to take the LTD, which policy payment was the responsibility of the employees. Once I went out of disability, my STD payment taxes were withheld and I had to claim this as income on my taxes. Since switching over to LTD payments, no taxes are withheld and these funds are not claimed as taxable income. CIGNA has recently offered me a Lump sum settlement in lue of the remainder of the payment for the LTD policy. I’m assuming this lump sum payment would also carry no tax liabilities since the monthly LTD payments carried no tax liability.

Second part of my question, my LTD payments from CIGNA will continue till Jun 2028. I was contacted by an agent of CIGNA by letter, which said my policy was worth by CIGNA’s calculations, $317,000 at a 3.65% interest rate, with that said they offered me $185,000. If paid out for the life of the policy, till Jul 2028 CIGNA would have paid a total just over $495,000. If a more realistic interest rate is used to determine the current value of the claim, the current value would be much more significant then what CIGNA has reported. I composted a letter to the one making me the offer and told him I would consider a $325,000 settlement. I received an e-mail reply back which stated he was only authorized to go as high as $200,000. I again e-mailed him back, dropping my counter off to $275,000 once again reminding him that regardless of what interest rate is used, 0%, 1%, 2%, or 3.65%, CIGNA would be saving a very sustainable amount and this counter offer would be fair for all sides. Reminding him if he isn’t authorized to go above $200,000 then I am sure he has a boss who could authorize the amount I am requesting. After 2 days I received a reply from him explaining he had gone outside his office for authorization and that he was approve to offer $210,000 but this is the maximum they can offer. So here I sit pondering is this a true statement or not. I am assuming that his statement isn’t factual and he could authorize above what he has offered. I’m considering writing him one more time and lower my counter offer to $225,000 and see if the maximum he spoke of would raise to get this done. My question to you if I got you guys involved would you all be able to get this amount higher than the purposed maximum he just quoted me.


Attorney Stephen Jessup:


As we are not tax professionals we are not authorized to provide any advice as to the taxable nature of the buyout and would have to defer to a tax professional. That being said, typically if the benefit is not subject to taxation, the buyout would not be either- but again, consult with your accountant. With respect to the buyout amount, there does stand the chance that we may be able to negotiate a higher amount. Please feel free to contact our office to discuss in greater detail.


Hi. I was a owner operator tractor trailer driver and I was injured in Oct 2012 and had my own occ. insurance. I went on STD and Oct 2014 it ran out and applied for LTD through the same insurance carrier, Great American Insurance Group Trucking Division. One of the requirements for LTD is that I needed to apply and get SSD and still be disabled. I did apply and am now getting SSD and they in turn sent me a reservation of rights letter. I haven’t seen any benefits since Oct. and when I called the claims adjuster and asked the status of my claim and mentioned I needed to know the status since I was thinking of getting an attorney. She seemed surprised and told me they would have more on the status of my claim in the upcoming week. I was getting 670 per week. Is it normal for insurance companies not answer you in hopes you go away? And do you know if GAIC LTD offers buyouts?

Attorney Stephen Jessup:


It is all too common for an insurance company to be slow or drag their feet. Additionally, it is typical for a company to issue benefits under Reservation of Rights although you have indicated they have not. Correct? I have never had experience with a GAIC buyout, so I would unfortunately not be able to speak as to that.

Jeff Wilson:

I started out on short term and was moved to LTD a couple years ago it thru SunLife. Could you tell me if they offer lump sum? They set me up with a advocator group to get SSI and I got turned down twice and have to start over. The judge took things into considerson he shouldn’t have, but I couldn’t find a lawyer to take it to civil court because they didn’t handle cases. I was thinking about trying to get a lump sum, then find a good SSI lawyer. Thank you!

Attorney Stephen Jessup:


Sun Life does negotiate lump sum buyouts of policies, but usually not until SSDI benefits have been awarded and any applicable overpayments are repaid.


Does American Fidelity Assurance offer lump sum settlements?


Hello and thank you so much for all the great advice you provide. I have been approved for SSDI due to disability in 2014. Last year, SSDI gave me a permanent disability approval due to my many chronic health issues. I have my LTD insurance which requires medical paperwork to be filled out yearly by my Drs.. Even though the LTD company (Sedgwick) told me I was approved until retirement age of 67 years, they still make my drs fill out paperwork stating my conditions, etc. I have to fill out long paperwork yearly too. This year, Sedgwick sent me a very big envelope requiring extensive information from me, my Drs. and now want access to all my medical records. My condition is a terminal one and is not going to change unless a Miracle from God heals me. How can Sedgwick keep putting me through this stress year after year, and making my Drs. fill out the same forms over and over? If they told me I was approved for LTD benefits until retirement age of 67, why are they acting as if they know nothing about my case? Do they Sedgwick CMS or VPA offer a buyout? I get so depressed knowing that yearly package from them will arrive each year the week of Christmas, and then I have a few weeks to get appointments to my Drs. for them to fill out the forms. The Drs. are usually closed for several weeks at Christmas and New Years, and it is so stressful trying to meet the deadlines to fill out the Sedgwick required paperwork. Thank you for any advice you can provide. I live in Texas too.

Attorney Stephen Jessup:


They are not typically know for negotiating lump sum settlements.

Attorney Stephen Jessup:


Thank you for the kind words. Disability benefits under an employer provided policy are determined on a month by month basis, as such they can request information to determine continued eligibility of benefits. Despite the severity of a health condition there really is no such thing as a guaranteed benefit under an employer provided disability policy. Sedgwick is a third party administrator, not the insurer, and therefore not liable for payment of benefits. Any potential buyout would be offered via the employer.

Sami Qasha:

I’m on long term disability for 8 years now I received $1567.25 a month. I was offered a lump sum and still waiting for them to send it out. I have about 300 months to go. What percentage should I accept or settle for? Thank you!

Attorney Stephen Jessup:


There are definitely more factors that go into the sufficiency of a buyout besides the percentage of benefits offered by the carrier as there are considerations for present value and mortality. Please feel free to contact our office when you receive the buyout offer letter so we can discuss the sufficiency of same.

Sandra Parish:

I worked for a cardiology practice for 12 years and then we were purchased by a large company in June 2013. I was diagnosed with multiple sclerosis in 2005. I recently had an episode that disabled me long enough to file LTD claim. The preexisting clause states you have to work there for 24 months and not had any treatment for 12 months prior the effective date or they won’t pay. Now the employer says the effective date is the first of every year at open enrollment. And my hire date is when they bought the company which was June 2013. So someone with a disease like mine won’t really ever be. Covered for a claim. Is that discrimination?

Attorney Stephen Jessup:


Unfortunately, it does not rise to a level of discrimination. With that being said many disability policies indicate that if you were covered under a prior plan from your employer that you would be deemed covered under the new policy as if there was no break in coverage. The problem in your case may be that they won’t recognize the provision as the employer is not technically the same.

Joseph Pono:

I requested a lump sum after being disabled since Jan 2011 and was denied. In my opinion after multiple surgeries for lower back, legs, arms and wrists along with rheumatoid arthritis and other ailments I should of been a good candidate. I’m 60 years old and can’t see how I could ever go back to work. One of my coworkers has less physical problems than me and was approved for a lump sum of $100,000. Can you tell me what it takes to get a lump sum?

Attorney Stephen Jessup:


It is completely at the discretion of the insurance company and often there is no rhyme or reason as to why the decide to buy out some policies and not others.


Mr. Jessup,

I have a policy from my last employer Xerox for 60% of my actual wage if I became disabled. The policy is through Prudential and I have been collecting of 5 years $656.25. They have offered a lump sum this past month. $138,906 = maximum amount, present future benefit $77,654 at 5.60% interest, and mortalily rate of 345%. 71% = 55,000 lump sum payment and is taxable. No disabilty attorney will take my case, I have been referred to employer benefit attorneys for an hourly rate. I live in WI and just want a fair amount.

Thank you,

Attorney Stephen Jessup:


Please contact our office with a copy of the offer letter from Prudential. We can set a time to discuss the offer and what can possibly be done to increase it.



I am curious, is a case generally stronger for a lump sum payment if you not only have approved more than 2 years LTD with Cigna but also have approved waiver of premium for Life Insurance as well? Is the potential lump sum attorney negotiation better with an LTD plus Life Insurance option?

Attorney Stephen Jessup:


The insurance company’s main goal is to make money, and if they can accomplish that by offering you a less than ideal buyout amount then they certainly will. An attorney can certainly be beneficial in negotiating and obtaining the best lump sum buyout amount. Please feel free to contact our office to discuss any questions you may have.

Randi Johnson:

My “battle” is with Social Security. It appears most of your testimonies are related to private insurance companies. My first request and my reconsideration were denied. My physcians strongly disagree with their decision and I have had another surgery and am awaiting a hearing with Social Security which I’m told may take 18 months. I have not received a check since Sept. 2014 and in the meantime, my only income is Interim Disability from DC {<$300/mo) who reviewed my records found me disabled. Is it worth it to get an attorney at this stage of the game and if so would fees be adjusted since it seems I've already completed all the paperwork?

Attorney Stephen Jessup:


You are correct, we handle disability insurance claims under private or employer provided disability plans. You will need to consult with a SSDI attorney as to any of your questions as to what your rights may be. Please feel free to contact our office and we can assist you in contacting one.


I have been on LTD through CIGNA since 2007. They have cancelled me twice and upon appeal reinstated me. I am covered under the cannot do any occupation. I am 44, so I have another 21 years of coverage.

My benefit is $4000 a month. I also received SSD.

CIGNA has never offered me a buyout. Can I ask for one? What would be a reasonable payoff? Would I lose my pension or would it just stop growing? Would I lose my medical coverage through my employer? Would SSD be affected? I am just getting so tired of the constant harassment from CIGNA. They had me followed and found nothing. I don’t think I can handle another 21 years of their bad treatment.

Attorney Stephen Jessup:


As you have multiple questions that would weigh in on making a decision to accept any potential buyout, please feel free to contact our office to discuss how we can assist you.


I have another question. After receiving several reservation of rights letters I called and asked my adjuster why cant I be paid under the reservation of rights? I asked to speak to her supervisor who tried to grill me about my claim. I told the supervisor accord to my benifits you guys have 60 days to investigate the claim for ltd its not open ended. I also said stop fishing for stuff and its my policy and I wanna get paid. They told they took it to upper management and they wanted to see my file. When I followed up on there meeting my claims adjuster said shes completing administration paperwork and then sending out a letter detailing everything but she wont tell me on the phone because so was told not to by upper management. Is this legit or should I be expecting I denial letter or settlement offer. I have had STD for 2 years and was supposed to switch to LTD in oct 2014. I’m kinda confused. Help, thanks.

This is my own occ/acc insurance with the same carrier GAIC and its non ERISA. And I have ben approved and receive SSDI and the insurance company had me go through a vocational assessment which the expert told me she agrees with SSDI vocational expert that I can no work. I also asked for this report from GAIC 4 times over several months and still haven’t gotten a copy… just excuses.

Thanks again.

Attorney Stephen Jessup:


I would not expect that any letter would be a buyout letter if your LTD was only to begin in October 2014. From their actions and your claims manager’s lack of communication I would mentally prepare for potentially bad news in the letter. If they were going to approve the claim they usually advise as to same over the phone. Please feel free to contact our office with any other questions.

Red Neck:

I’ve been on a LTD plan with ING for 15 months now @ $1978.00 a month until I’m 65 years old if they don’t give me the boot like I’m reading here on your pages. So I was wondering if I should ask for a payoff buy-out before my workers comp case settles, otherwise they want all that money dollar for dollar! And after they get the $100k what’s to keep them from dropping me? Do you think they would allow a payoff with a large claim fixin’ to settle in comp Court?

Attorney Stephen Jessup:

Red Neck,

If there are outstanding sources of Other Income (such as the work comp or SSDI) then the chances are they would not be willing to discuss a buyout of your policy. Additionally, if your policy does contain a change in definition from the inability to perform your own occupation versus any occupation, ING would also most likely wait until that review is completed. If you do have more questions, please feel free to contact our office.


I’m currently on disability because I was out of work having knee operations when my employer closed its doors, my doctor says I can’t go back to my former type of work. I need to go back to school which is paid for through the government. I have to see the dr every couple of months to be seen to qualify for my payments. My question is, if they offer me a settlement on my ins policy, what should I ask for for a settlement? I was making about 60,000 a year.


I’m a full time city firefighter. I got injured on the job badly in Fall of 2013 and I have Trustmark LTD. I guess it’s 2 years covered for my occ, then after that any occ. They offered me a buy-out in the 10k range. While I am not able to work in my current job, and I feel it’s permanent, I am not yet sure if I will get a disability pension from the city – that is ongoing and I’m collecting workman’s comp. for now. I would expect I could be deemed able to work in a less physically demanding job at some point. I am also a gulf war vet w 80% disability. Is taking the buyout wise? I could use the money and fear that between the paperwork and requiring me to go back to a lesser job I don’t want to lose out I get paid 200$ a month from Trustmark now. Thank you.

Attorney Stephen Jessup:


First and foremost, who is your insurance carrier? Some companies do not offer lump sum buyouts. Additionally, the ones that do will typically require you be on claim for at least two years and are receiving Social Security disability. Please feel free to contact our office if you would like to discuss further.

Attorney Stephen Jessup:


Unfortunately, only you can determine what is in your best financial interest. A $10k buyout offer based on a $200 a month benefit is 50 months- so by no means a necessarily bad offer amount. The downside is that accepting the buyout would waive all rights under the policy into the future and you do not necessarily know where you will be with respect to ability to work or receiving your pension, etc.

Joseph c:

Hello, my name is Joseph and I have a 4 year old son that has autism and as of November of 2014 he is receiving ssi payments every month because he is a special needs child. Is there a way to get a lump sum of money for my own housing and other important things for my son so I could provide stability for my son because right now me and my son are living with family members and since i get guaranteed money every month, is there a way to liquidate that money and I’m the custodian of the payments for my son. Please get back to me if you have any knowledge of this matter or if you could assist me, thank you.

Attorney Stephen Jessup:


You will need to discuss your situation with an attorney that handles social security claims to get a concrete answer. That being said, I have not heard of a lump sum payment being made on social security benefits of any sort.


I just got an e-mail from reliance saying that they approve my any occupation disability until 11/1 2016, is this too soon to ask them if they offer a buyout?

What about ssdi, if reliance offer a buyout will SSDI off set any of the amount from reliance.

Should I use your office to negotiate in case reliance wants to offer a buyout.


Hello my name is Paula and I have been collecting LTD from the standard and as of last Nov. it made 24 months total. There were problems getting medical papers back to them due to their lack of communication to one of the doctors. Since that happened they exercised their right to use a 90 day extension to make a decision if they were going to reinstate my benefits. and which time they ran over the 90 days I got a call that they would reinstate benefits until they make a decision. I Am getting SSD and was approved on the first try. Now there saying who ever looked over my doctors info agrees with my doc about not being able to work but not sure if they agree theres not some kind of work I can do. There saying my doctors documentation is not clear enough for them even though all the other times it was fine. So now they want me to go take a Functional Capacity Evaluation test. Do I have to do this test since my doctor says bending lifting over 10 lbs no sitting over 30 min and the list goes on. Or do I ask them to ask my doctor for better documentation? If I have to take it should I take doctors documentation with me to tell them all the things they can not test me on? My benefits with the Standard are lifetime but that’s only if you can get them to pay.

Thanks for time
Paula C

Attorney Stephen Jessup:


Please contact our office to discuss the viability of a buyout from Reliance.

Attorney Stephen Jessup:


The Standard policy will give them the right to have you submit to an independent evaluation. Failure to attend same could be grounds for a denial of benefits. Also, you indicate that your policy is for your lifetime – is this a policy you purchased through an agent on your own? Please feel free to contact our office to discuss your claim in greater detail.

Paul Goeltz:

That said every month they ask when I can go back to work, or question that I told them its the doctors not me that retired me due to failing back, disc, fusion etc. They even once declared me cured of back problems and had to get all my doctors to retell them no he does not have anxiety, but back problems.

What is your take on dearborn, I feel they are trying to trick me, they take doctors notes out of context, I spoke with the insurance commissioner of Montana, who said if they stop paying we can help, as worried, every year I have to spend 1000s e on doctors when calpers, my doctors all say I’m disabled? Why do they not talk to them? Yesterday they said when am I going back to work, I said I would like to but you need to ask the doctors, then asked about buy out? I said not sure but I paid for disability if I did take buy out it would have to be for my 55% of my last wage and how long does the disability go for until I’m 70? As that’s when I can get ss, I think they are mad I’m not on ss, but have not paid into it for 15 years have 30 in ss, they told me i will get ss at 70, so many things so really what is fair for settlement, or just keep monthly till it ends, or does it end. I guess at 70 they will minus out my ss right?

I also feel they want me to find a cure and spend money or they will shut me off but have been trying to fix my back for 15 years and still nothing so how long do I have to ask for new treatments?


Attorney Stephen Jessup:


Did you obtain your policy through your employer? If so, your policy would likely be governed by ERISA (with rare exceptions). Typically these policies only pay to age 65 or your SSNRA. Unfortunately, as your benefit is paid on a monthly basis, Dearborn is within in their rights to obtain monthly updates. Please feel free to contact our office to discuss your claim further.


I was recently offered a buyout option from Aetna. My question is, can buyout offers be negotiated or are they considered final offer take it or leave it? Also, if I were to hire your company to try and negotiate A) could Aetna take the entire offer off the table and B) would I have to pay a % to your company for the total amount I get from my buyout or only a % of any extra money I was awarded as a direct result of your company helping me achieve a higher amount? Aetna has offered me $400 towards an attorney to review my paperwork. I do want to take the lump sum buyout, so if it is unusual to negotiate I will go forward with their offer. I just want to make sure I am not leaving any money on the table- as it directly affects the future of my family. Thank you for your time.

Attorney Stephen Jessup:


Depending on the valuation of the claim by Aetna and the amount offered it can be negotiated to some extent. Please feel free to contact our office to discuss the offer and review the letter.

John Smith:

I am currently approved from LTD from prudential which is about to hit the 2 year redefinition of disability mark. I just found out that my old employer is no longer contracted with prudential but switched to liberty mutual. How does this usually impact claims under the old contract? I do not have a copy of any policy as I no longer work for my old employer and prudential will not give me a copy. Just looking for most common treatment answer.

Attorney Stephen Jessup:


Although you will never find record of it, I am of the opinion that if Prudential is no longer contracted to insure your employer’s benefit plans that it does way in their decision making. Ultimately, however, the strength of any claim is heavily based on the medical information contained in your file. If you have concerns transitioning into this review please feel free to contact our office to discuss same.

Angela W:

Can you tell me a estimate of time it takes to negotiate a lump sum buyout with UNUM ? We received an offer about a year ago and would like to get the most we can however the offer today was less. About 33 percent of the total amount owed in the lifetime .

Attorney Stephen Jessup:


Typically a buyout offer will be less after a significant amount of time passes – in this case a year – as the company would have paid the benefit out over that course of time. A buyout can normally be negotiated in less than 30 days. Please feel free to contact our office to discuss the offer Unum has made and how we can assist you in potentially obtaining more.

De Bora:

I retired 100% disabled and have learned Met life was not suppose to keep deducting money out of my check for life insurance but they’ve continued to keep taking it out for 15 years.

Are they required to return my money or must
I sue to get it back?

De Bora:

I learned my employer has been underpaying my monthly disability pension by $300.

They coded my monthly paycheck witth a
2 which is a regular retirement, instead of with a 3 which is a disability pension.

I recently learned they did 2 other employees the same way.

Now they’re offering a lump sum buyout.

Isn’t the employer obligated to pay me the amount they underpaid.

Do I have a legal recourse to sue?

Attorney Stephen Jessup:

De Bora,

Have you notified MetLife of this fact? Also, have you verified with your employer that the policy was not to have continued as part of the formal disability retirement?

Attorney Stephen Jessup:

De Bora,

You will need to consult with an employment attorney to discuss your legal rights.


Was wondering!
How far back can an employee go back if they were harassed by SunLife insurance and signed off with settlement?

Attorney Stephen Jessup:


If you have willingly agreed to and accepted a settlement with Sun Life that included waiver of any rights under your policy there is nothing that could realistically be done to undo the settlement.


Hi, I am 45 yrs old. I have been on LTD since 2002 with MetLife. Every year I have to get a doctor to fill out a form regarding my condition. Will I have to do this every year untill I reach 65? Also can I still collect buy LTD if I move from the U.S. to another country?

Attorney Stephen Jessup:


Yes, MetLife can request annual reports until the maximum benefit period has been reached. You will need to review a copy of your policy with respect to residency in the U.S. as some policies do require an insured to live in the U.S. or Canada a certain number of months each year.


Hi, if I have been on LTD with MetLife since 2002. I am 45 yrs old. What are my chances of getting MetLife to buy me out?

Attorney Stephen Jessup:


MetLife does not negotiate lump sum buyouts on employer provided policies and very rarely on individual policies. What type of policy do you have?

Robert G.:

I have a Metlife LTD policy thru my former employer (I am now on disability from this employer). I have been on sssi disability and also drawing 600 a month on the metlife LTD policy. Metlife has offered me a lump sum payout for the three years I have left on my policy before I turn 65 and the payout policy ends.

Metlife is sending me the paperwork. As far as I see, the only downside is I will have to pay taxes on it at once instead of over three years (keeping in mind I have not seen the offer as yet. I was wondering if you would be willing to give me an opinion. My biggest concern is if my SSSI would be reduced due to this lump sum payoff.

Attorney Stephen Jessup:


It is very surprising to hear MetLife has offered you a buyout of your policy as MetLife is known to not offer same. Typically SSDI would not be affected by the settlement proceeds but I suggest you consult with a SSDI attorney to discuss further. Please feel free to contact our office to review and discuss the MetLife buyout offer.


I have been receiving an LTD payment from Unum for 10 years now. My policy does have a “own occupation” to “any occupation” clause, but I am in no danger of that because I have been bedridden for the past 7 years with a spinal cord injury (Chiropractor broke my neck). I was an executive with a national non-profit org who purchase my insurance package which ALSO includes a $240,000 life policy. Unum has checked me out thoroughly, and the first years were tough with PI’s and the like bugging me etc., but now I think they have finally resigned themselves that I am not a fraud.

All this being said, do I stand a chance at getting a lump sum, and if so, can you ballpark were that might fall? Their total risk at this point is 462K in LTD payouts (til 67) and $240 in life, for a total risk, if I died one day before my 67th bday (wouldn’t that be grand for my family) of $702,000.

Attorney Stephen Jessup:


Please feel free to contact our office to discuss your claim in greater detail. Please note that there is no right of survivorship by your family to your LTD benefits, and most policies only provide a 3 month survivor benefit. The greatest obstacle in securing a lump sum buyout would most likely be the mortality ratings associated with your condition.


I was diagnosed with Chronic Lymphocyctic leukemia in Nov 2014 and was on std for 6 months threw Hartford and approved 1,500.00 a month for tld till the year 2034. I was on ltd for a month and a half then they cut me off. Also during my leave I had an xray and MRI done… they found cancer in my lower back and constantly pain all day and night. I have high blood pressure and anemia… with four back injections and back meds for pain. Hartford sent my cancer doc a form. My cancer doc said for me to return to work with no restrictions even tho I had another back injection after he signed those forms. Hartford stopped my money july 2015 and told me to file an appeal (180 days). Hartford also said that they talked to my back doc over the phone and they said he said that I have no restrictions. I been on my job 17 years making long term payment. I still have terminal cancer, anemia, fatique, high blood pressure, back problems… I been off of work a year. I’m waiting on ssd. I have a ssd lawyer working on that now. I didn’t go back to work in July cause of pain… my question is do I stand a good chance of getting reinstated for my long term money. Due to still feeling sickly and in pain and if approved can I get a lump sum?

Attorney Stephen Jessup:


If your denial was in July you do not have a lot of time to file the appeal (if you have not already done so). If you are approved there stands a chance the carrier would not offer a lump sum buyout do to your health history, which would presumably be considered too high risk for a buyout. Please feel free to contact our office to discuss the status of your claim.

Jim M.:

I am licensed to sell insurance and am planning to write my own LTD policy through a large carrier. If I eventually needed to receive benefits, could the company fight the claim due to the fact that Im the active agent on the policy? Very much appreciated.

Attorney Stephen Jessup:


You would be best to discuss with your colleagues or the underwriter. That is a very unique question and one we wouldn’t have a frame of reference on. Ideally, as long as you are honest in your application for the policy one would think there wouldn’t be an issue, but when it comes to an insurance company one never knows.


I was offered a a settlement for less than 6 months of my annual income from my employer due my injuries. I am recieving state disability but my LTD is still pending with Aetna isurance. I am unable to perform my regular duties in a wearhouse anymore. If i accept the settlement, can i still be approved for long disability.

Attorney Stephen Jessup:


Without seeing what type of agreement you are signing we would not be able to give you any indication. If there is a general release that indicates you are relinquishing coverage under policies, then you could be jeopardizing your LTD claim.

Dental Hygienist:

I have been on LTD for 19 years from a Policy I had purchased through Lincoln Life that is now administered through Metlife. I was a Dental Hygienist and it was an “own occupational policy.” I was disabled following a car accident, and have been diagnosed with Fibromyalgia, balance disorders, a double-vision disorder, and degenerative disc disorder and arthritis, and other things. Lincoln Life was dishonest from the beginning, and would not pay, until I filed a complaint with the Attorney General and Insurance commissioner. They started paying after a year.

Metlife eventually took over as the plan administrator, and every so often, they want me to meet with a field agent to access my disability. I have not up to this point, as I have requested to do so only with an Attorney present, and they drop it.

I recently redacted the lines on their Medical Authorization form, that had to do with personal information, nothing Medical related was redacted, I am just not allowing them to get my Driving records, flight itineraries, etc. I limited their use of the authorization to obtain Medical records only.

They sent me a letter that says, in part, “please note that payment benefits and waiver of premiums are no longer made under a complete reservation of MetLife’s rights under the policy and applicable laws.”

I hate that MetLife is so dishonest, I never purchased the policy from them, but now they administer it, and have total control?

I loved doing Dental Hygiene, and would work again in a heartbeat if there was any way I could possibly do so. The money would be way more than the $2700 a month I have been receiving.

I have been treated by the best Doctors, and all are in strong agreement that there is no way I can perform Dental Hygiene, much-less, any other job.

Does this mean they won’t be paying me? What exactly does it mean?
MetLife Sucks!

Attorney Stephen Jessup:

Dental Hygienist,

I am not sure from your fact pattern as to the nature of the letter. Please feel free to contact our office to discuss in greater detail to determine your rights and claim status.

Sandi K.:

I won my appeal for LTD from Assurant, however because of the original denial (after 2 yrs of paying me) I lost my COBRA because they were paying $400 of the premiums-which is part of my benefit package. They have reinstated ALL of my benefits, but the COBRA is gone due to lack of payment. Assurant told me today that there is nothing they can do about that, AND to top it off, they are not responsible for all the medical bills I have incurred during the last 10 months since the denial and loss of insurance. Do I have any recourse?

Attorney Stephen Jessup:


Unfortunately, you may have no recourse against Assurant under ERISA, as the only monetary legal remedy available under ERISA is payment of past due, unpaid benefits.


My LTD company, The Standard, automatically deducts amount received from social security from their payout each month. Can they do that?

Also, if I am disabled, can no longer can work, and subsequently no longer have the benefit to file a new claim, can the diagnosis for the active claim change completely to something else? Medical to mental health?

Attorney Stephen Jessup:


Yes, Standard can. Quite often a diagnosis can change or be added upon throughout the course of the claim so it is wise to keep them updated as to changes in your medical status.


In your experience, will AIG offer a buyout on a non-ERISA policy?

Attorney Stephen Jessup:

George, they are not a company known for it, but it does not mean that the opportunity doesn’t exist to explore the option. Please feel free to contact our office to discuss your claim history and policy in further detail.


I took a Lump Sum settlement and I wanted to know if I receive a W-2 from the lump sum settlement? I received a W-2 from my employer and I received a W-2 from the insurance company. I’m just not sure if this W-2 from the insurance company represents the lump sum settlement, or if I need to add that as other income.

Attorney Stephen Jessup:

Jeff, the insurance carrier will normally send a W-2 reflecting any benefits paid, to include settlement proceeds. If you have not received a W-2 from the carrier I suggest you call them to inquire.


My husband went on disability prior to policy cancellation. Does this mean that the insurance company is no longer liable for paying the mtg payments?

Attorney Stephen Jessup:

Rhona, I am sorry, but I do not follow your question. Please feel free to contact our office to discuss your husband’s situation.


I’ve been offered a settlement for long term disability. It appears as tho the calculation they have come up with as present value for the claim, looks like it’s based on my monthly benefit minus the amount I have taken out for taxes monthly. If I do the present value calculation, I come up with 200000 over the life of the policy. They have calculated the present value to be about 70,000 less than that. The only thing I can think of is that the monthly amount they are using is the amount of the check, after taxes are taken out. That’s about a $300 difference. Are there other factors besides the present value formula that I should be considering?

Attorney Stephen Jessup:

James, there are always considerations for mortality/morbidity, but typically not that big of a difference. Please feel free to contact our office to discuss the letter your carrier sent you.

Concerned in fl:

I am currently receiving LTD benefits through Unum. I was notified a few months ago my file was transfered to the catastrophe dept. I’m 47 and will recd benefits until age 65. Would Unum offer buyout or should I request. I also receive SSD benefits. Will this be effected if Unum offers buyout settlement.

Attorney Stephen Jessup:

Concerned, it would sound like your claim would be a prime candidate for a potential buyout with Unum. Please feel free to contact our office to discuss how we can assist you in maximizing the value of your policy in any settlement negotiations.


Hello, I was a Union employer for 12 yrs. I Was vested after 6 yrs then I was retired disabled after 12 years. I have been receiving disability pension for five years and receiving ssi, they discontinued my ssi payments. My pension disability benefits say I will receive them commence. How do I find out about if I’m eligible for a buy out and will this effect my health insurance through my plan?

Attorney Stephen Jessup:

Chris, many carriers do not negotiate lump sum settlements of disability pension benefits. With respect to any effect on your health insurance- only your employer would know what ancillary rights you would retain if a lump sum was negotiated and accepted.

Kyle W:

I am receiving ltd payments from Metife. Can they stop my payments if I move to Canada? Even the SSA will still continue payments under those circumstances.


Hi, I have been out of work for more than 15 years. Started as short term disability then transferred to LTD. I collect Social Security Disability, as well. Once SSD was approved I had to pay back a portion to UNUM. Originally the HR person at my company told me LTD was for the rest of my life as long as I could prove disability. My company was sold very early on in my disability. Unsure if any company pays the policy. If the company is no longer in business, is UNUM responsible to still pay me LTD? Also, if I asked UNUM for a copy of my policy would they provide it to me?

Thank You!

Attorney Stephen Jessup:

Kyle, some policies require an insured to reside in the United States- though the overwhelming do not. Your policy would clearly state if it had such a restriction. The only issue that may come into play is information requests relating to your medical treatment.

Attorney Stephen Jessup:

Jeanette, yes, Unum would still be obligated to pay you in accordance with the terms and conditions of the policy. You can certainly ask them for a copy, but since the onus is on the employer to provide a policy I am not quite sure how they will handle the situation. Has Unum ever approached you for a buyout of the policy?


Thank you very much for your response. No, UNUM has never approached me for a buyout.

Attorney Stephen Jessup:

Jeanette, a buyout may be something they would be interested in discussing. If you do have interest in exploring same, please feel free to contact our office.


I see in previous comments that MetLife does not offer buyouts on uncontested claims, what does that mean exactly . I have been on LTD since 2006, my claim is in their Special Handling Unit.
Before I even get to my doctors appointments they have already been submitting request for medical documentation . As though they are checking on me. my cardiologist deemed me permanently disabled in 2007, I have filed for ssdi only to be denied bc of my age . Is MetLife doing this to end my claim ?



I have been receiving benefits from the STD since 2003. Also, I received SSDI. I requested a buy out but was told this is not feasible at this time. I have 13 more years to receive benefits.
I don’t even want the entire balance, but basically 1/2 so I can move forward with my life.
Can I negotiate although I was turned down?


Attorney Stephen Jessup:

Jaclyn, until recently MetLife would not consider any type of settlement of a claim unless it was in litigation. MetLife has changed their stance very recently, but there is no clear criteria by which they use to determine if a claim is eligible for a buy out. I am not quite sure what you mean in your question- please clarify.

Attorney Stephen Jessup:

Lisa, you can certainly try to negotiate, but if the carrier has already determined you are not a candidate per their criteria then there may be little that can be done, as the carrier is under no obligation to offer a buy out.

Michael P.:

I was an employee of Raytheon and had Met Life disability. I was declared permanently and totally disabled in 2001. After a lot of hassle, they stopped paying my benefits altogether because I could not keep up with their constant demands. Is it too late to sue for a lump sum payout?

Attorney Stephen Jessup:

Michael, how long ago was your claim denied? Most ERISA based disability policies have a 3 year statute of limitations to file a lawsuit. Also, did you ever appeal the denial?

Teresa B.:

How or who do I contact to buy out my Ltd claim? I have been receiving Ltd benefits for 7 years and am permanently disabled. Age 51.

Attorney Stephen Jessup:

Teresa, please feel free to contact our office to discuss how we can assist you in securing a lump sum buyout of your policy.


I am 60 yrs old and have been on permanent disability since 2011. Should I ask for a buyout. My insurance is Aetna. What are the guidelines? Thank you.

Attorney Stephen Jessup:

Adrian, Aetna does offer lump sum buyouts on a limited basis. Please feel free to contact our office to discuss your claim in greater detail.


I was Dx with cancer in 2015 receiving LTD for 5 months now. I am cancer free and Cigna has talked of lump sum buyout as well as vocational rehab settlement (approx 50k). Due to my inability to work as an RN due to neuropathy from the chemo. I have a 18-24 month 60% pay at own employment giving me $3100 per month. After 24 months it goes to 60% at any occupation which would only be about $2900/month. My thoughts are to take the money since I will be able to work as an RN in some form. Cigna advises me not to take the settlement incase the cancer comes back because I would be waiving any future claims. Do you have any experience with lump sum payouts when someone had cancer and it may return? My thought would be whatever new job I get would have a new LTD policy that I would be eligible for.

Attorney Stephen Jessup:

Jacqui, if you do accept the buyout it is imperative you review the terms carefully as the release may contain language that will preclude any future coverage under any Cigna disability product, not just a surrender of rights under the current Cigna policy they are looking to buyout. If you do return to the workplace and are eligible for coverage under the new employer’s disability policy you would be able to file a claim for benefits, but I would advise that there would be concern as to pre-existing condition language in the new policy. So if you do settle with Cigna now, you could find yourself in a position without coverage in the event the cancer does return. If they have made a formal offer in writing to you, please feel free to contact our office to discuss the terms of same.


Are the chances better that a company such as reliance standard will not hassle you if you are approved for ssdi in the1st month of ltd? The policy because of my age calls for 5 yrs of payments does reliance standard do lump sum payouts?

Attorney Stephen Jessup:

Christopher, it certainly doesn’t hurt your chances, but there is never a guarantee that RSL won’t hassle you. If you have only been on disability for a short period of time (under 24 months) they may not consider any buy out discussions. How long have you been on claim?


Thanks Atty. Jessup,
I started on STD 5/4/2015 and just went to LTD on 11/1/2015 and SSDI I applied in 10/2015 and was just approved effective 11/01/2015. My policy states that I am eligible to recieve LTD for 5 YRS because of my age
SSDI pays 2365 mo and reliance pays 2899 now adjusted for ssdi. Are they a company that will do a lump sum?are they a company that tends to hassle people in my situation?is this something that can be done? And is it something you could do?

Attorney Stephen Jessup:

Christopher, they do offer lump sum buyouts but given your age they may not make an offer that would be reasonable. We can certainly discuss how we can assist you in trying to secure the largest buyout possible from them. Please feel free to contact our office.


I was denied LTD benefits from Aetna once the policy switched to any occupation after about 2 years of benefits. I was awarded SSDI & back pay around the same time. I apealed and Aetna made me complete a 4 hour long horribly painful FCE. Four weeks later, Aetna reinstated my benefits. Are they doing this just to get the SSDI retroactive payments? Can I request a buyout or do you advise that I wait until Aetna offers? Will I look desperate and loose any leverage by asking them for the buyout? I have 20 years remaining on the policy.


I would be interested in weighing any options their may be.
What do we do to figure that out?
Thank You

Attorney Stephen Jessup:

Angelique, the FCE must have indicated you were unable to work or Aetna would have denied your claim and still come after you for the retroactive payment. You are certainly in a position to request a buyout, but Aetna may not necessarily be willing to consider one so close in time to a denial. Please feel free to contact our office to discuss in greater detail.

Attorney Stephen Jessup:

Christopher, please feel free to contact our office to discuss.


Yes I make $860 a month on disability and can’t live on that. Would I benefit on a buyout?

Attorney Stephen Jessup:

Larry, please feel free to contact our office to discuss how we may be able to assist you.


If you accept a buy out and currently life insurance waiver is in place because of disability, do you loose the life insurance too? Additionally, please email me your fee structure if you were to negotiate a buy out? Thank you

Susan L.:

I was awarded disability from my long term insurance carrier, Prudential. I was awarded 60% of my salary until my age of 65. I am currently 61 years old and would like to take a buyout of the remaining funds. Are you aware if Prudential has a buyout policy?

Attorney Stephen Jessup:

Amanda, typically a buyout of a disability policy does not affect coverage under a life insurance policy. However, you will still need to meet the terms and conditions of the policy as they relate to disability. Not all carriers negotiate buyouts and those that do have general criteria that typically need to be met in order for the carrier to consider. Please feel free to contact our office to discuss in greater detail the possibility of securing you a buyout.

Attorney Stephen Jessup:

Susan, Prudential does offer buyouts on select claims, but may not make you a settlement offer that would make financial sense as they may heavily discount the amount based on your age. Please feel free to contact our office to discuss in greater detail.


My husband was disabled in 2000. We were awarded a lump sum(small) and an annual payment. He also receives Social Security/Medicare. We are in the position that we need a lump sum of money. Is it possible to get a lump sum from Workers Comp? We live in Kentucky

Attorney Stephen Jessup:

Gayle, as we only negotiate lump sum buyouts from private disability insurance companies you will need to speak with a Worker’s Compensation attorney in Kentucky.


I have been on disability since 2004 with Unum. After a few years I was eligible for SSD. Now I am getting both. Now Unum is asking me for a buyout. I turn 65 in 8 years. The monthly amount from Unum is 969. They are offering 68% of the present value = 53,700. If I refuse I will continue with the 969. per month. But would you advise taking the buyout? I could use the money but I will also be giving up quite a bit of income if I don’t take the buyout. Not sure what to do. And will this effect by SSD?

Attorney Stephen Jessup:

Summer, only you can determine whether you should take a buyout as only you can make a decision about your finances into the future. We would be more than happy to review the offer letter to discuss all the factors to determine if we may be able to assist you in securing more. As for SSD- from a standpoint of whether or not settling your policy will affect the SSA’s determination of you being disabled under its rules- no.

William B.:

I have been earning my disability pension for almost 4 years on a monthly basis. I would like to get a buyout lump sum in order to be able to do operation on my right hand and also to pay for artificial hand if it might be needed.


If you accept the offer for the buyout is there any wiggle room to request more in the future. My mother accepted the offer. It was pretty low and now she is in a bad situation. Is there ever an instance where this can go back to court for additional settlement?

Attorney Stephen Jessup:

William, disability Pensions function differently than Disability Insurance policies. You will need to contact the administrator of your pension to discuss any potential for a lump sum buyout.

Attorney Stephen Jessup:

Lee, unfortunately, if a signed settlement was reached then it will be binding as to terms, conditions and amounts of the settlement.


In my opinion, the biggest drawback to a buyout is the federal taxes and/or state taxes that you will owe on the money received. A large settlement can easily put you into the 28% tax bracket, even if you were in the 10 or 15% tax bracket in prior years. From what I have learned most people with private policies received their benefits because their employer paid the premiums.

Is there any way to shelter any of that income from taxation?

Also a buyout could affect your eligibility for certain benefits you are receiving currently. It can also affect your Medicare premiums. There are several important unintended financial and benefit related consequences of receiving a lump sum that people need to consider. I would appreciate your elaborating on these so that folks understand it’s not all upside.

Thank you.

Attorney Stephen Jessup:

Jeanette, as we are not tax professionals we cannot provide any type of tax based information. You will need to consult with an appropriate tax professional or financial specialist.


I requested a buyout from my insurance group policy which I am told that they have created a policy for offering buyouts. I requested a buy out to help with paying my over-payment that they are pursuing from me based on my approval of ssdi benefits. They are possibly going to take all of my future benefits until its paid. Which will cause me greater distress that I already am having. I was told I would not be a candidate for the buyout because they will not consider any persons with a mental illness. Not that they would be reviewing case by case. I believe I would be a perfect candidate. I could pay back the over-payment and receive a lump sum of my future benefit of 12 years. And I could figure out my own future with out the monthly worry of what they will do next. I have been receiving since 2008. So they state I would not be a good candidate not because I could possibly return to work or my benefits could be denied at any point. But because of my illness I’m not considered because of the Risk they would be taking that I would come back 3 months later saying I changed my Mind. I was not in my right mind when I accepted the by out. I think that after 9 years receiving benefits I may not be able to hold a job down but I haven’t jumped off a balcony. I feel they are Discriminating Mental Illness against me and not trying to help me with what I think is the best way to help me. The reason I have the policy is to help me should anything happen to me.. And although I have experienced the .. your being denied,.. your being discontinued.. we are approving your claim several times over the years.. I think they are being Harsh and no humanity in regards to helping me out of a bad situation. Just because I have a “mental illness”.. “And I Might Change My Mind”. Why wouldn’t they just help me with having some compassion for my situation, When They take my benefits for the over payment and I receive nothing from them monthly. I have no idea what I will do. The Buyout would be the helping me is the answer. I would not change my mind. I think my signature agreeing would cover any change of mind. I’m feeling hopeless. But having Faith they will review my situation. The Buy out would help us both. Would you fight this I feel Discriminator Denial.

Attorney Stephen Jessup:

Dee, please feel free to contact our office to discuss your claim further. Please do know however, that an insurance company is not under any obligation to negotiate a lump sum settlement of a policy. That being said we may be able to assist you in getting them to consider one.


My name is Stewart I have a job back injury 04/21/16waiting on Workers compensation Lil over two now….but I apply for long term disability insurance thru my employer 06/30/2016 thru metlife now iam waiting to on insurance to check and see if my back injury was perjury on if they going to pay now.? I got insurance when I started employment 2015 renewed policy 01/11/2016 without physical

Attorney Stephen Jessup:

stStewart, I am not sure what your question is. Please feel free to contact our office to discuss your MetLife claim with one of our disability attorneys.


Can you help me with a lump sum buyout with Liberty. They offered only 7 months worth of payments and I have 10 years left until 62 and 13 yrs until 65. What a bad offer. Please advise if helping me is possible.

Attorney Stephen Jessup:

TJ, it sounds like Liberty is planning to terminate your claim. The offer is reminiscent of ones that pay out the remainder of an “own occupation” period as Liberty has likely already determined you would not be disabled from any occupation. Please contact our office to discuss the offer and your claim.


I was diagnosed with Hydrocephalus in 2002 have had numerous surgeries and am unemployable due to severe cognitive and executive functional difficulties. Unum is my LTD insurer. They paid 14 years at $875. mo. The policy expires in 6 years when I turn 65. Unum has offered a lump sum settlement for the remaining 6 years. Every year Unum sends me forms for me and my Doctors to fill out. They also request a release of information from me for Social Security, credit score etc. which the last 5 years I have refused to sign because I feel they are sending me a blanket request so I ask for individual requests for specific information and why they want it. They haven’t acknowledged/responded to my requests. Is Unum’s offering of a settlement mean they intend to pay out the last 6 years of my policy regardless if I continue to refuse Unum’s annual requests for info?


I got hurt in 2000 and am still receiving workers compensation. I don’t know how much longer I will continue getting compensated. I never got an attorney, didn’t feel I needed one. The company lawyers have talked to me about making a settlement but then nothing happens. I hurt my knee offshore and then that caused me to have problems with my other knee and lower back . I was told by my case manager to go see their doctor and if he said that my knee injury was causing my other knee and lower back problems , that she would continue paying me till I die. Which he did say that was happening. Now I have another case manager but they haven’t told me how long they will continue my compensation. I don’t know what to do , if you could offer some advice I would greatly appreciate it. Thanks , JC

Attorney Stephen Jessup:

Daniel, the offering of a buyout is more about a business decision by an insurance company to close out a book of business. Although your fact pattern would make it seem unlikely that they would terminate your claim in the next six years, there is no guarantee that they would not find a reason to or give you a hard time.

Matthew G:

I have a long term disability policy with metlife, are your attorney fees applied “gross” (before taxes) or “net” (after taxes) to the benefit paid to the insured? My understanding is most plans requires taxes be taken out before issuing the benefit (which could cause some confusion). Thanks

Attorney Stephen Jessup:

Matthew, legal fees vary on a variety of factors. Please feel free to contact our office to discuss how we can assist you and under what type of arrangement.

Pohn Chan:

I was injured and was on STD through American Fidelity Assurance. It then turned in LTD and I was receiving benefits for a year. I assumed I would be covered for for my injury till 65 or till SSI. The policy stated any covered accident or injury would be 65 to SSI and and illness 5 years or to SSI. After 1 year, they told me that I would no longer be receiving benefits because I exhausted my benefits and that my benefits canceled due to the Rider amendment ( Special Conditions ) which I was unaware of. I was under the impression that my injury ( herniated disc, and post laminectomy/disectomy which I surgery 8 years ago, sciatic/pinched nerve. Reading the policy, as stated. I thought I was covered until they stated due to the “special conditions” I would no longer receive benefits and now with no warning or heads up about my benefits being canceled after 1 year, I’m in a situation with no type of income. How can they do this? Tell me I’m covered then tell me to go to the last 3 pages of the the policy that states special conditions. It’s unfair that when I purchased the policy this was not brought to my attention. I was just told accident or injury 65 year and illness 5 years. With no mention of special conditions.

Attorney Stephen Jessup:

Pohn Chan, please contact our office with a copy of your policy and the denial letter so we can determine how we may be able to assist you.


Is their an advantage to seeking a layer to look at a buyout offer ? I have received a buyout offer from my Long Term Disability Insurance and was just wondering if their was an advantage of having a lawyer to look it over or not ? Thank you


I receive SSD and Unum wants to buy me out of my long term disability policy.


Negotiation with unum buyout they are only offering me 40% I want to negotiate for a minimum of 65% will they ? I am 45 and I do plan to live until 65 when my monthly payouts will stop. Unfortunately my condition will only get worse and not better and I do realize that those are the two most powerful variables within a buyout.

Attorney Stephen Jessup:

Tim, often we are able to negotiate a higher number on the buyout, so that in and of itself can be worth your time to discuss with a lawyer. Also, it is always good to have someone review the documents to advise you as to the value being assigned and your legal rights. Please feel free to contact our office to discuss in greater detail.

Attorney Stephen Jessup:

Mike, please feel free to contact our office to discuss Unum’s offer as it does appear to be lower than their typical percentage point range.

Dan E S:

My employer paid disability insurance has paid me well for 10 years and for now, everything is well. Acouple of years ago, I called because I heard the full retirement age was changing for my age group from age 65 to age 66+10 months. I called my insurer then and they told me that their policy will cover me until my full retirement age.
So now I am in the process of refinancing our home and called for a letter that spells out the details of my income, social security portion, disability insurance and continuation until age 66+10 months. Of course now they are saying that my policy is not going to go until I reach full retirement age.
Now, I have lost substantial short term memory but most of my long term memories from long ago are substantially intact. But who will ever believe me that I remember being told at orientation that our disability policy continues until full retirement age. The rep said that depending when we got our policy and from which employer, some stated until age 65 and some stated until full retirement.
Well, what about the ones where their reps said it will continue until full retirement age regardless of what they claim their contract with my employer says… Is there a potential class action here? I still have 5 years until I reach 65 but I may get turned down for my mortgage because of the lack of income continuation documentation.

Attorney Stephen Jessup:

Dan, the policy that was in force at the time you became disabled would dictate how long the policy lasts- if your plan at that time indicated only to age 65, then it would be capped at 65.

Marie A.:

Metlife has started offering Ltd lump sum buyouts. I hv been offered one. I’m 54 and hv MS. If I calculated right using the calculator they are offering around 70%. Which I find acceptable. My problem is tax bracket. If I accept the offer will they pay me half now and half in January or is it always one check. Should I accept first offer.Thanks.

Attorney Stephen Jessup:

Marie, you are correct, MetLife started offering buyouts this year (2016). The 70% mark is historically as high as any disability carrier will go on a buyout offer. Lime most disability carriers, they will likely be more than willing to split the buyout over this year and next. I suggest you inquire before accepting just so you are as informed as much as possible as to the tax ramifications. If you do have any additional questions please feel free to contact our office to discuss.


I have been on disability with Liberty Mutual for a little over 5 years. First std and then ltd after 6 months. I applied for and received SSDI for myself and my children on my first try after just a couple of months- no date in front of the judge or anything. I have schizoaffective disorder. About two years ago, they sent me to 2 IME’s and said that one doctor said that I had one diagnosis (bipolar) and the other agreed with my doctors and said I had schizoaffective disorder, but they would continue to pay (the other diagnosis was capped at 2 years of benefits). Fast forward to now. They had me do 2 more IME’s both about 4 hours drive each way from my home. I attended them although it caused a great deal of anxiety and stress. I cooperated fully. The second doctor was not friendly at all and even told me that I had been observed. With schizoaffective disorder, this was disconcerting but I digress. My question is, would a lump sum settlement be considered? I am ready to get them out of my life. My condition is aggravated by dealing with them. However, I need money to support my family. Without it and without the ability to work, I don’t know how I could make it or what would happen to my children. What would I have to go through to do this and what could I expect to receive? I am 43 and my benefits are “supposed” to last until I am 67. I can’t imagine living like this for 24 more years.


I need your help please!
I am currently on LTD from Liberty Life, have now been approved for “any” occupation. In March of 2017 will be officially “terminated” but LTD(2 years on LTD) will continue till 65. I also just been approved for SSDI, awaiting for the award letter. I also have been laid off as the entire office will close this week, I am eligible for severance in March according to the severance policy. I also have a tax debt (outside my bankrupsy)I owe 2013 (10k). I am also in chapter 13 bankrupsy which will be discharged in May of 2017.

1. Will SSA automatically garnish my back pay to satisfy the 2013 tax debt?
2. I realize I owe the LTD back the “overpayment”. Who should I pay IRS or the LTD?
3 Since I am in open Chapter13 bankrupsy they will not accept a installment plan until the bankrupsy is closed.
I would like to pay off my IRS debt, and the balance pay the LTD back , and offer a payment plan to Liberty Life for the remaining.
Also I will be eligible for 6 months severance ( in March), Could I offer the LTD my severance to pay them back? or finally ask them for a buy out to repay them?

Attorney Stephen Jessup:

Stacy, Liberty Mutual does not typically provide lump sum buyouts, and it would appear that they are actively investigating your claim so the likelihood of same could be very limited at this time. Regardless please feel free to contact our office to discuss your situation to determine how we may be able to assist you.

Attorney Stephen Jessup:

Kim, unfortunately your questions can only be answered by an accountant or tax professional. If you have a Bankruptcy attorney any questions pertaining to same would be best answered by him/her.


I have been on Sunlife LTD since 2009 and I receive free accrual through HOOPP I also receive Canada Disability. I can continue to receive LTD and free accrual until i turn 65. I just received a letter from Sunlife offering me a buyout. I will be 55 in March 2017 so I can start my HOOPP pension. The total monthly amount of my HOOPP pension plus Canada disability pension is a few dollars more than the monthly amount I receive now. Do you think it would be a good decision to accept the buyout?
The lump sun would allow me to purchase my condo.
The idea of not having to deal with Sunlife is very appealing and it would allow me to accept money for the occasional work I do with a children’s charity.
Is accepting this buyout a good idea?

Attorney Stephen Jessup:

Susan, as we are not authorized to practice law in Canada I would recommend that you speak with an attorney in Cananda.


I have been on disability for one year due to pain and inflammation from Lupus and Rheumatoid Arthritis after having been a teacher for fifteen years. I am under 40 yrs old. How likely is it that American Fidelity Assurance would offer me a buy out at some point?

Attorney Stephen Jessup:

Scarlett, the vast majority of disability companies only contemplate potential buyouts after two years of disability. However, America Fidelity is not one of the major insurers with respect to disability insurance so the frame of references as to their procedure is limited.


Why is Unum suddenly asking about my marital status? I am planning to marry soon. Can my LTD payments be affected based on a spouse’s earnings? Is there anything I need to be aware of that could change my policy before I get married?

Attorney Stephen Jessup:

Donald, your policy is unique to you so you being married should play no part in determining your benefit amount with respect to your spouse’s earnings. It is not uncommon for claim forms to inquire as to marital status, dependents, etc.


I was just offered a buyout of my LTD, which is now, “Any occupation”, am receiving SSDI. Metlife will offer the buyout but absolutely no negotiation. I turned it down as they low balled it to the tune of only receiving about 30% of my benefit payout for the next five years. I really wanted to do the buyout but my lawyer and financial advisor said the offer was ridiculous. We did a counter proposal anyway, and they would not accept, even for review, which would benefit them. So I declined it. At first they said, you could consider resubmitting at a later date, but when I spoke to the case worker again, she said no, they would not take a request for a buyout. Oh well…


My LAST FULL day of work was 11/20/15 (my employer lists my termination date as 6/1/16, reason is an automatic resignation when applying for LTD). STD, through my employer, was paying until it hit the 6 month time limit and then LTD kicked in (still in March 2016). Received LTD monthly payments until September 2016 when the carrier advised that they were ending the LTD program and would be offering lump sum payouts, but the amount depended on a medical review and an estimate of how much longer you’d need to collect (LTD). Payouts were paid October 1st, 2016. My doctor advised that I file for SSDI. My application for disability is the end of January 2017. The worker at SSDI told me that my claim would probably have an inset date of 11/20/15 (my last full day of work). Then he said that back pay will go back 12 months (minus the 5 month waiting period). My question is, if they do in fact back pay to 11/20/15, does the amount I was paid for disability and the lump sum, get paid back to my LTD insurance carrier? The carrier is BC/BS.


Have a long term disability from liberty mutual. They are tough but they are good with my covering year to year a tumor taken out of a rough brain spot keeps me up and down. Is there much chance they would offer or accept a lump sum?


I am nearing the end of the 2 year “Own occupation” clause of my LTD. I received a letter stating that they will continue to provide benefits after the 2 year clause as long as I meet the “group policy requirements”. They also said that to be gainfully employed I would need to make 80% of my pre injury wage, which would be almost 50 dollars and hour.

There is no way I can physically return to my previous line of work, and I lack the skill set to make $50 an hour and at 50, I’m probably unlike to find anything that offers retraining with that amount. I fully expect some skulduggery on the part of the insurance company eventually and was wondering if I who usually broaches the idea of a lump sum settlement, and what are the usually post 2 year things I need to watch out for?

Dave M.:

Can I take a lump sum, back payment of a Federal Employee Retirement System (FERS) disability over several years (like you can with federal Social Security back pay)? I received a lump sum payment in 2016 that is for most of 2014, all of 2015 and much of 2016. The amount is significant and the tax consequences of taking everything in a single year (along with another retirement) will be painful.

Attorney Stephen Jessup:

Andrew, Liberty is not known for offering lump sum buyouts. The criteria for same is rather extensive – please feel free to contact our office to discuss your claim further to determine if you might be eligible for a buyout.

Attorney Stephen Jessup:

Freddy, buyouts are very fact specific based on a multitude of factors. Please feel free to contact our office to discuss your claim as it approaches the two year mark and what options you may have in securing a buyout.

Attorney Stephen Jessup:

Dave, unfortunately, we do not handle claims under the FERS and would not know how to advise you as to same.

Joyous Knot:

Thank you for your time. I have principle life ltd. I have been on it for two years now and found out yesterday that on march 2nd they are changing my policy to cancelled due to the clause, able to perform work of some type. I am not able to perform any work. Due to doctor negligence and trying to cover up work related injuries and the denial of treatment and repair of the injuries such as a 50 percent torn rotator cuff, multiple bulging disc from the impact of being slammed into a metal machine and force under it by equipment. Likewise I have mayofacial syndrome, nerve damage in spine through out, chronic back pain, chronic syatica from the work related accident and they did not treat the pain or injuries for over a year and a half resulting in cardiomyopathy – (takosubomyopathy to the point I had to wear a body heart difibulator) from untreated pain.

I currently take heart medications, anxiety medication, pain medication due to my own doctor I can see now. I have had continued care with my doctor, I was told by my doctor in july of 2016 that I am unable to work. I am done working and needed to apply for social security. I have never been released to return to any work, let alone the ones I could qualify for. Which the state says less than five percent I can get and with out the education factor leaves 2 percent of a job I may be able to do, however my drs bottom line says no more work for me!

Principle gave me a contract stating they were paying me until 2032 17 years of payments and that they would also supply my teachers and creff to now they are pulling the plug on everything. They had me apply for social security which I am told is still being put together at the ssi office but I have no means of income if they pull it from me, I can’t work, and what am I going to do here? I just got off a thirty day heart monitor and am on heart medications due to these injuries and lack of care by the doctors to the point the medical board has accepted my complaint for investigations due to the facts of no treatment and mistreatment leading to permenant heart damage.

I appreciate your feedback and direction here to keep my benefits until my social security comes in. Should I even consider writing a buy out letter or what? Thanks again!!

Attorney Stephen Jessup:

Joyous, you can inquire as to a buyout though they may not consider it at this time.


Hello Stephen
First of all, I would like to thank you for the informative site. I have been reading it since my disability in 2014. However in doing so, I have realized that insurance companies are not your friends. They are into making money period. I was let go of my job fought won and gained sun life. I passed the 2 year make in November of last year. I was unsure of how they worked as prior to their decision to grant me the any occupation designation, I was updating them regularly. When I recently inquired about when to give any new information and to whom I was told that they would contact me. Usually 1 time a year. Because of your site I have been toying with the idea of hiring a lawyer to send in the requested documentation. I was told that I would be given approximately 3 weeks to send it in. Should I see doctors that tend to my physical and mental disabilities and go through what they have to date and inform them that I will soon be getting “the call” and that I would only get 3 weeks and get that information to which ever lawyer I hire so that I can pay them to review and then when the time comes they will have a better idea about me and my case. From reading past comments I am concerned that if I do it on my own (even though I believe I have a strong case) that they could potentially if not likely deny my case. I am thinking that although it will cost money by not doing it on my own but it far outweighs the cost that I would incur if I am denied. Also I am wondering if it is too early to ask for buyout at same time as I know all doctors tell me that I am finished. I currently receive 2500 plus Sddi payments and have already paid them the over payment. What would a typical buyout would be appropriate amount of buyout. Thank you for your help


Hi, I have Met Life ltd and I am under review as of right now to determine if my benefits will continue. I have been on since feb 2012 and it is because I can’t work in my “regular occupation”, but it switches to a job that I am qualified for with my education. If they decided to cancel my ltd benefit can I fight them on this because there is nothing else that I could do with my degree and having carpal tunnel in both hands? I am waiting to have surgery done because the surgeon says to wait.

Attorney Stephen Jessup:

Curious, as you have already passed the 2 year any occupation switch and are receiving SSDI your claim may be ripe for a buyout. The criteria for same are dependent on multiple factors. Please feel free to contact our office to discuss your claim further.

Attorney Stephen Jessup:

Sarah, yes, if your claim is denied you would have rights to pursue an administrative appeal. Be advised that MetLife only offers one level of administrative appeal so it is imperative you submit as detailed an appeal as possible. Please feel free to contact our office to discuss the current status of your claim as well as potential appeal scenarios.


My LTD is with UNUM.
I was already approved for SSDI.
In Nov 17 UNUM will review my claim and determine if I can be gainfully employed under any occupation.

If SSDI doesn’t think so how can they deem otherwise?

Also, UNUM pays me $2816 a month and I’m 42 years old.
They’d have to pay me through March 2042.
Also, I have $365,000 in life insurance through Unum.
If a buyout were offered would that include my life insurance?

Attorney Stephen Jessup:

Jonathan, unfortunately, receipt of SSDI benefits does not guarantee that Unum will find you disabled under the any occupation review. The SSDI is evidence of disability and will certainly play a factor in the review. If Unum were to buyout the disability policy it typically does not affect the life insurance policy, meaning they will only buyout the LTD policy and leave the life insurance in force. Please feel free to contact our office to discuss your claim further.


I have been on LTD with MetLife since July 2013. I will be paid a monthly non-taxable income of $17k/ month thru March of 2024. I have been diagnosed with Parkinson’s MetLife called me today and plan to make a lump sum buyout offer. The current payment generate $1.4MM in non-taxable income over the next 7+ years (85 more payments).

MetLife said they would send me the offer in a few days. I understand it will be based on PV calculations and mortality rates.

Could you tell me to the best of your knowledge how much they may offer? Also, your opinion, financially what is the minimum to accept or when it would be financially advantagious for me?

Thank you,

Attorney Stephen Jessup:

Terry, there are many factors that go into a buyout. As such, to best advise you it may be more conducive to have a phone call. Please feel free to contact our office to discuss further.


I have been collecting LTD from Aetna $1027 every 2 weeks. Recently I paid back an overpayment of $14,000 because I also recieve auto wage loss. I sent copies of my wage loss checks for last 6 months to ensure I would not have another overpayment. Needless to say Aetna is again sending me $1027 every 2 weeks again. Why would I have to pay overpayment back in the first place if the amounts have never changed? Sounds fishy and I feel like the overpayment should never have happen seeing how they assure me that the amount this 2nd time is correct which is the same I got to start LTD with.


My fiancé was diagnosed with stage 3 non-operable pancreatic cancer adenocarcinoma 5 weeks ago. The oncologist has not given him a prognosis regarding survival, however one of the surgeon’s evaluating him made it clear that since the tumor cannot be surgically removed, his cancer is terminal given it’s aggressive and resistant nature. He has STD from his employer, and he pays for a LTD policy. He applied for SSD and was quickly approved, but SSA states payments won’t begin until September 2017. He may not be alive in September. Is there a way for him to receive a lump sum payment from SS to help pay for his medical insurance, expenses and debts? And why does his separate commercial insurance that he pays the premiums for have anything to do with receiving benefits from government mandated SS? He’s going to die and he needs his money back so I can take care of him and make him comfortable.

Attorney Stephen Jessup:

Heather, please feel free to contact our office with a copy of your policy and correspondence regarding the overpayment so we can best advise you as to whether Aetna is applying the offset appropriately.

Lee M.:

I have been on LTD disability with Cigna for 3 years and have been determined to be totally disabled from any occupation. I would much rather have a lump sum payoff than monthly payments but they have not offered one. Is it bad form, risky, or frowned upon by the insurance company if I ask for a lump sum?

Attorney Stephen Jessup:

Kelly, I am sorry to hear about your fiancé’s condition. Unfortunately, there is no way I am aware of to have the SSA pay any benefit prior to the statutory start date of disability benefits. With respect to the employer provided disability policies. Those policies contain provisions that will allow for the offset of his monthly disability benefit by the amount being paid by the SSA.

Attorney Stephen Jessup:

Lee, Cigna is known for negotiating lump sum buyouts, but like many carriers try to negotiate at low percentages of value. Please feel free to contact our office if you would like to discuss the potential of a buyout and the process that entails.


I was contacted by Metlife about a buy out on my long term disability policy. I have been receiving benefits since 2001 and have benefits for 10 more years. My life insurance is paid for while I am on Ltd until age 65. Would I also be forfeiting my life insurance, or can that be negotiated into a contract? I am also holding out on my pension until age 65. Thanks.

Attorney Stephen Jessup:

Lisa, typically Life Insurance policies stay in force and you are only buying out the disability portion. In an abundance of caution you can certainly request clarification from MetLife as to same.


Should I retain attorney or continue with advocator group? I receive LTD privately-who provided the advocator group benefit to me. I am worried that their (AG) allegiance is to Unum. I also have to pay back lump sum to unum if ssdi approves me. I am currently am waiting for adjudication hearing to be scheduled. I dont know what to do- if needed I will pay out of pocket for lawyer.
Much Thanks

Attorney Stephen Jessup:

Casey, you are free to consult with and look to hire an attorney of your own choosing. Attorney’s fees under the SSA rules are paid out of your back benefit receive so you should not incur any out of pocket expenses to retain an attorney.

Shuranda R.:

I have been on LTD with MetLife since 2011. I have recently been offered a lump sum buy out and would like to know what is the maximum amount or percentage the lum sum can be decreased by legally?

Attorney Stephen Jessup:

Shuranda, as insurance companies are under no obligation to offer lump sum buyouts there is no such percentage. Most insurance carriers will look to offer lump sum settlement reflecting 55 to 70% of the future value of a policy. From my experience, MetLife does not negotiate their buyout offers.


I want a buyout from LTD do to my illness kidney failure. Not able do work right now. I’m only use my right arm and hand, there is a grath in left arm no more 5 lbs pickup are use. I’m deal with LFG now on Dialysis 3x week 4hr 25 min. There any chance get buyout I try it they claim they be take a risk. So what now?

Patty B.:

If you have long term disability and you get a lump sum payment from Social Security, how do I send the taxes to the IRS and the remainder to the LTD company without being penalized? I was approved without an attorney for 5 years before a review for social security disability. I will then be 62. I had a terrible accident which left me very disabled. My LTD has been paying for 12 months through my group policy at work.

Attorney Stephen Jessup:

Anthony, due to the severity of your medical condition LFG may not determine you to be a candidate for a lump sum buyout. Please feel free to contact our office to discuss your claim in greater detail so we can best advise you.

Attorney Stephen Jessup:

Patty, you will need to consult with an accountant to discuss any questions you have regarding tax reporting.


If you are receiving LTD through your prior employers private insurance (Cigna) and are offered Medical Retirement Insurance that will be paid for through a plan from your prior employer, will the insurance company (Cigna) be able to offset the amount of the monthly medical insurance or can they completely deny future LTD due to you accepting the Medical Retirement Benefits?

Attorney Stephen Jessup:

Jean, typically, disability retirement benefits from an employer are an offset under Cigna group disability insurance plans. As such, if you receive a retirement benefit there stands a good chance Cigna will offset by that amount. If that is the case you may be better served waiting to cash in on any retirement you have accumulated.


Hartford closed my LTD after 6 years because they claimed my doctors did not provide medical records and my doctors said never received any papers from them. I’ve been fighting SSD for the same time now my question is! If I get approved by SSD do I need to pay back Hartford even when they closed my case?


To clarify one of your comments: After two years, I now meet my policy’s “any occupation” standard, as determined by Lib’ Mutual. Is an insurer more likely to consider a lump-sum payout if the claimant has already entered the “any occupation” stage? (You mentioned that “most insurance companies will not offer a buyout if you have a policy that will change from “own occupation” to “any occupation”. I wonder if this opinion was meant to apply only to someone still in the “own occupation” phase, or does it include the “any occupation” phase?)

Attorney Stephen Jessup:

Ray, Hartford would still have rights to seek any repayment of an overpayment stemming from receipt of SSDI. Have you appealed your denial yet? Please feel free to contact our office to discuss how we can assist you in appealing the denial of your benefits or filing a lawsuit if all administrative remedies have been exhausted.

Attorney Stephen Jessup:

Chad, the carrier is more likely to consider a lump sum buyout if you are already in the any occupation stage with benefits being approved under that standard of disability.


I have been on long term disability since may 2016 and they only give me 50%. My employer terminated my health coverage without notice and refuses to pay my medical bills from my work injuries. I was getting shots in my lower and upper spine pain medication that now I paid $200 for. Do they have to pay my medical bills or not? When am I eligible for a raise in my benifits? Can I get a lump sum payment?

Florida A.:

I was recently approved for ongoing benefits from Sun Life LTD. I was on the “My Own Occupation” plan for two years and now I am defined as unable to work at “Any Occupation.” My Government SSDI case is still pending but my court date is very soon. Sun Life knows I will get a decision from SSDI very soon. MY QUESTION: Will I get a buy-out offer from Sun Life? Are they waiting to see if I get approved for SSDI before they offer me a buy-out? I’m thinking that they will combine the buy-out offer with the demand to pay them the back pay I will get from SSDI when/if approved. Am I right? I will owe them a lot! 3-4 years of back pay from SSDI. Any idea what a fair offer is? Does Sun Life negotiate? Is it a good idea to refuse the first offer and negotiate? If I don’t take the offer will they get nasty and make me go to a bunch of IMEs and such (to find a reason my condition has improved)?? FYI – I am now over 50. Any suggestions?

Attorney Stephen Jessup:

Robert, a disability insurance policy does not typically a lot payment for medical treatment. If you were injured at work and you have a worker’s compensation claim you will need to speak with a work comp attorney as to rights to payment for medical treatments.

Attorney Stephen Jessup:

Florida, Sun Life will not typically offer any type of lump sum buyout until such time that SSDI is in place. That being said, Sun Life will negotiate on numbers to a limited extent. Please feel free to contact our office to discuss your situation in further detail so we may better advise you of your options.


My long term disability (3rd party sick pay) offering settle. My concern is does this affect my social security disability payments?

Attorney Stephen Jessup:

Lynn, a settlement of a group or private disability policy should not impact your SSDI payments.

Columbus O:

I just recently was approved for long term disability from March. The LTD: Voya has already offered a possible settlement. They asked me if I was on SSI which I am not prior to offering the settlement. I am about to turn 43. Why would this be offered & what things should I consider before making a decision, is this considered separate from my work benefits/health & are they automatically forfeited if accepted? Will I owe anything back to LTD from payments thus far?

Attorney Stephen Jessup:

Columbus, if your work benefits are tied to your disability insurance claim, then settling your claim could affect your other benefits – you will need to discuss with Voya or your employer. With respect to why they are offering you a buyout so soon is a trickier question. It could be that they are only looking to buyout a closed period of time and not the entire policy – though they would likely still require you relinquish the policy. When you receive their offer letter it will be easier to assess their intentions. Please feel free to contact our office to discuss the offer when you receive it.

Gloria H.:

Metlife offered me about. I’m ok with it but I’m married now. Will that affect my buyout?

Attorney Stephen Jessup:

Gloria, marriage should not impact the ability to receive a buyout from MetLife.


If I accept a buyout from Lincoln for my long term disability insurance then start receiving benefits from the Florida Retirement System and a 401K after the buyout, can Lincoln ask for money back?

Attorney Stephen Jessup:

Carolyn, no. If you negotiate and finalize a buyout then all parties waive rights under the policy so Lincoln would have no right to any type of repayment due to receipt of what would have been a source of “Other Income” subject to offset under the policy.


I have 36 payments left totaling $48,240. Lincoln wants me to accept $31,000. That’s approximately 65%. Does this seem like a low amount? No one knows how long they will live, but I have no reason to believe that I won’t live for the next 36 months.

Attorney Stephen Jessup:

Carolyn, in a buyout situation, 65% of the value of the plan is in many cases the most an insurance carrier will offer. That being said, it doesn’t mean that it’s an amount that makes sense for you to accept.


My sister was forced by Lincoln to file for social security disability. Can they for her to file for her Benefits from the Florida Retirement System? I’m looking at the certificate of insurance and it doesn’t say anything about the social security or retirement. It does say that she has to report any change in earnings. Is the FRS considered earnings if she doesn’t apply to receive them now?

Attorney Stephen Jessup:

Carolyn, it is not likely that they will require her to apply for her FRS benefits, but if she were to receive them it would be an offset under her policy (like SSDI would be).


I am presently receiving a monthly SSDI and LTD check. I know that my SSDI was reduced by the amount of the LTD check. I have received a letter from the LTD company offering me a lump sum pay out.

If I accept the lump sum, will then my SSDI check go back up to it’s original amount which it would have been, if I were not receiving an LTD check?

Attorney Stephen Jessup:

Philip, it is my understanding that SSDI benefits are based on your work earnings history only. As we do not handle SSDI claims you would need to consult with an SSDI attorney to best answer any questions you may have regarding your SSDI benefit. Furthermore, most insurance companies offer low buyout figures. Please feel free to contact our office if you would like to discuss same.


I’m on my 23rd month of LTD from my previous employer. Group LTD through major insurer. Not Government insurance of any sort. I have no reason to believe the Insurance Company will deny my last monthly payment. As an FYI, in addition to my initial medical condition that started my disability I have a comorbid benefit that could extend my benefits beyond the 24 months. I had/have 3 comorbid medical conditions that came about after my initial medical condition that led to my LTD. I still have these comorbid medical issues now. Although, things are looking better.

My policy reads this in a section that has a heading of: “What happens if you receive a Lump Sum Benefit?”… “Other income benefits from a compromise, settlement, award or judgement which are paid to you in a lump sum and are meant to compensate you for any one or more of the following:
1. Loss of past or future wages.
2. impaired earnings capacity.
3. lessened ability to compete in the open labor market
4. any degree of permanent impairment;
and 5. any degree of loss of bodily function or capacity.”

It goes on to talk about prorating this lump sum over the time on LTD.

My insurance Company knows (based on a multitude of medical records and discussions) that at least the first 3 of these apply to me. Bottom line questions… Will they be proactive and address this in a compromise or would I automatically have to sue to get this benefit in a settlement, award or judgement? They haven’t been proactive so far and my benefits will more than likely come to an end in a couple months. Maybe a month or two past 24. Thank you.

Attorney Stephen Jessup:

Bill, the policy language you reference does not create a duty to provide you a lump sum benefit of the policy. That provision relates to if you receive a Lump Sum source of “income” from entities such as Worker’s Compensation or SSDI, how the carrier will seek to recover any applicable overpayment stemming from the receipt of said other income.


My husband has been out of work since Dec. 2015. He was on short term disability from his company that went to long term disability July 2016. After 12 months on Long term disability received a call status would change to disabiled to any occupation Jan 2018. In policy it says any occupation will be assessed after 24 months. Jan 2018 would just be 18 months. Have they just miscalculation?

We have sent everything in and a physician’s consultant has sent a review to doctors asking them to review and comment on their report. What do they usually ask for in report?


I’ve been receiving disability benefits from American Fidelity Assurance for just over two years now due to being permanently disabled as per my rheumatologist (severe pain and inflammation from Rheumatoid Arthritis). What are the odds they would offer me a lump sum settlement?

Sandy W.:

I have received ltd benefits from UNUM since 2000. I am do to have my benefits stopped at age 64. Will they consider extending benefits to age 66 when I reach full retirement?

Attorney Stephen Jessup:

Marie, some policies will indicate 24 months from the date of disability – and not 24 months of long term disability benefits. It sounds like your husband’s policy includes the six month elimination period (STD period) as part of the 24 months. If the carrier has sent out reports for your husband’s doctors to review and comment on, then the carrier is most likely challenging additional benefits. His doctors will need to respond to any position by the insurance company’s doctor that he/she does not agree with – and provide additional support as to ongoing disability. If you have any additional questions please feel free to contact our office to discuss.

Attorney Stephen Jessup:

Marie, unfortunately, I do not have any experience as it relates to buyout with American Fidelity Assurance so I would not be able to provide any insight. To have a better understanding of your plan language, please feel free to contact our office to review the policy and potentially provide additional insight.

Attorney Stephen Jessup:

Sandy, most Unum disability policies end benefits at age 65 and in some cases one’s Social Security Normal Retirement Age. Why are they looking to cease benefits at 64?

Jeannette W.:

I have just been approached for a buyout to my private LTD through MONY. I don’t plan on taking it because one of the riders of the policy has a lifetime extension. My question is do they typically want your medical records indefineltly? What if you change doctors or your doctor has retired? Or what if you your condition doesn’t require much help from doctors anymore? I have undifferentiated spondyloarthropathy and essential tremors. There isn’t much doctors can do for me anymore. I was a dental hygienist for 23 years before all this started.

Attorney Stephen Jessup:

Jeannette, so long as you are receiving benefits an insurance company has a right to request updated medical information. The extent to which they may request is the unknown. Some policies contain provisions relating to “Appropriate Care of a Physician” and note that if it is determined that due to your medical condition ongoing care is not required, then you would potentially not need to continue ongoing treatment. As there are multiple components to your claim, please feel free to contact our office to discuss same in greater detail.


I was injured by falling in a hole in the parking lot of the hospital where I work. I have two cervical discs and 2 lumbar discs that are now bulging with pain and am unable to sit or stand for extended periods of time that limits my return to work as a nurse. I am slowly improving. It is now 9 months and my employer is requesting that I take long term disability through met life which is part of my benefits. Will they force me to take social security? Will they force me to take retirement income? Is the quadro pension that I receive part of my income? Will I no longer received worker’s compensation?

What will happen to the health benefits that I and my husband receive from work? It seems like applying for this benefit opens up a whole can of worms at this point and I can manage easily on the workers compensation benefit.

Attorney Stephen Jessup:

Jean, as it relates to your disability policy, you can still receive worker’s compensation while receiving benefits through MetLife. MetLife will however offset your benefit by the amount paid by worker’s compensation. Additionally, the MetLife policy would require you to apply for SSDI and pursue that. SSDI would also offset your benefit. You employer may be pressuring you to apply for LTD, but it is ultimately your decision.


I have an uncontested erisa claim w Metlife. They recently offered me a lunp sum settlement. It was a ridiculous discount percentage not worthy of seropious donsideration, but it was a settlement offer.

Attorney Stephen Jessup:

Jay, MetLife recently began lump sum buyouts on 2016. However, as you have learned, they offer very low percentages of value on the offers and they do not negotiate the buyout amount.

Diane D.:

Does Guardian Disability offer lump sum payouts, at all?

Victor Pena:


Guardian will offer buyouts on a limited basis. Please contact one of our attorneys to discuss your options.


My LTD carrier – Cigna is offering a lump sum buyout. Based on a rate of 3.65 siting morbidity, age and nearing end of payout amount or the option to continue monthly payments while meeting medical criteria which could change at anytime. It’s seems obvious to take buyout but I want to know if there’s anything I’m missing. Thanks

Attorney Jay Symonds:

Renee, you should contact our office and discuss your options with one of our attorneys.


Good evening. I began receiving LTD through Sunlife in 2016 after diagnosed with end stage renal disease. Since then, I have received a kidney transplant but had multiple complications, including a stroke. I now have developed a hernia at the incision site which will need to be taken care of surgically. However, the surgeon has asked that I lose 25 pounds before he performs the surgery to greatly reduce the risk of further complications. I have began the dieting process, etc and hope to be able to have the surgery by June of this year. Sunlife called me today and said that committee has reviewed my case and that I should be able to do sedentary work so my claim will likely be denied in May when my 24 month period is over. They offered a buy out sum of one year’s benefits (I receive only $275 a month bc I also receive SSD.) Would taking the settlement be a smart thing to do? ( I can’t realistically obtain a job that will allow me to miss work for surgery after being just hired so I will be out of work, barring any further complications, for many months. I work as a registered nurse.) Thank you.

Attorney Stephen Jessup:

Leslie, the ultimate decision to take the settlement lies with you, as the money will reflect the remainder you would ever see under the policy. If there is no chance you will ever return to work it could very well be worth fighting them to keep the policy going. There are likely a multitude of factors to your claim, so please feel free to contact our office should you like to discuss in detail.


Hello, I have been on long term disability which was provided through my employer since approx 2010 at which time I had also applied for SSDI to which I was awarded with in a few months so Guardian Ins never had to pay the full amount because of the offset of my SSDI so they pay me after the offset $380 per month instead of the total amount of $1850 per month. The two questions I have are does the employer have any input or say if Guardian offers a buyout and second does Guardian offer buyouts. I’m currently 47 and have been on LTD since 2010 and if I read the policy correctly it goes until I’m 70. I’m disabled for back and legs pain due to an injury I sustained many years ago and has only gotten worse over the years. Guardian did send me for a FCE approx 2 or 3 years ago to which the doctor giving the exam stopped it after approx 25 mins due to my pain level being so high my blood pressure went up a great deal to a dangerous level and at which point she said she didn’t need to see anything else.

Attorney Stephen Jessup:

Brandon, in some instances an employer does have some input regarding lump sum buyouts under disability policies, but they are few and far between. They mainly arise if there are other benefits tied into you being on disability such as continued health insurance. Guardian does negotiate lump sum settlements on ERISA group disability claims, although they are not common. If you would like to discuss your claim and how we may be able to assist you in securing a buyout please feel free to contact our office.


Aetna just left me a voicemail stating my LTD conditions fall under the ’24 month policy cut off, and they ‘have decided to do a lump sum pay-out through September 2018’. My question is, I have surgery pending on both of my hands, and I also have a spine injury that will need to be evaluated AFTER the surgery per the doctors direction) in order to see which condition is causing the numbness to my arms and hands (spine injury with noted damage to vertebrate C2-C7 via MRI, or, Carpel Tunnel/ Tendinitis with cysts).

What are my options? Do I have options? It is likely that the carpel tunnel surgery will not be the solution for my disability and it is more likely that my hands have permanent nerve damage due to the spine damage… if this is the case, finding employment will be extremely challenging – my career has been administrative my whole life… what should I do?

Victor Pena:


Lump sum buyouts usually are contingent upon your agreement to forego continued coverage under the policy. If this is the case for you and if you believe you will remain disabled beyond the 24 month period then a buyout may be a very bad option for you. It’s also possible Aetna is denying you beyond the 24 month period and has found you will meet the definition of disability for only the remainder the 24 month period. If this is the case, they will give you the opportunity to appeal and the timeframe you have to do so could be triggered with the notice they have given you. You should immediately contact one of our attorneys to discuss your options.


I was approved for my ssdi a week ago. I have been receiving $1137 from the Standard Insurance for t he last 2 years. My Ssdi will be $1400 per month which is more than what I received monthly from the Standard on a monthly basis. Will the standard be still obligated to pay me something on a monthly basis?

Attorney Jay Symonds:

Robbie, generally speaking a group disability policy has a guaranteed monthly minimum benefit, which is typically something along the lines of $100 or 10% of your monthly benefit. Standard should pay the guaranteed monthly minimum if your SSDI exceeds your Standard monthly benefit amount.


I have been on SSI LTD for almost 1.5 years. UNUM has been paying 200 a month offset. They are starting to harass me with paperwork. It keeps me in a worried state. I would like to sever ties with UNUM. I only have a month to provide medical records again. They also want permission to distribute records and paperwork to a list of entities SSI being one of then. I fear UNUM will try to get my LTD with SSI revoked. I wouldn’t care if I severed ties for free. Should I have an attorney approach them with a buy out? I have less then a month to provide records. What should I do? I wouldn’t have thought that they would harass me for such a small amount of monthly payouts.

Attorney Alex Palamara:

Doug, I am sorry to hear of Unum’s harassment. A buyout might the perfect solution for your scenario. I will reach out to you so that we can discuss specifics. Unum will likely will want to complete its current review before any negotiations, so it is very important to continue to send in proof of your disabling conditions.


My Long Term Dosabilty benefits for my Vestibular Hypofunction are reinstated after being terminated at 24 months for ‘own’ to ‘any’ occupation now. I’m now scheduled to go to IME appointment and have had private investigators outside videoing 5 times so far since benefits were reinstated in June. Living like this is not something I look forward to (living month to month with constant threat of being terminated again. Do you know if Liberty Mutual consider or do lump sum buyouts for long term disability. I’m a disabled Registered Nurse, 47 years old now with benefits until 65 years old, and it’s ERISA. Thank you.

Attorney Jay Symonds:

Elizabeth, each carrier has it’s own policies and procedures as it relates to which claims it will consider for a lump sum buyout. You should also be prepared before attending an IME. I suggest you contact our office and speak with one of the attorneys to address your specific questions regarding your situation.


I ‘m currently getting LTD disability through Lincoln Financial but I took out the policy through my employer but paid the full monthly premium. It’s only a 18 mth. benefit policy also. My question is I just received a settlement for Pain & Suffering from faulty Mesh and now Lincoln Financial is saying that 1 of 4 things could happen.
1. I may be required to pay back the $33,000 they have paid me in mthly payments.
2. I might owe back a portion of the money they paid me.
3. My benefit maybe reduced in the future based on the settlement money.
4. The settlement money may not qualify and I will continue to receive LTD payments.
Of course I’m praying it’s #4 but I’m awaiting their decision and very worried. I’m awaiting a Disability hearing now and they have already told me that if I am approved I will need to pay back all the money that they have paid me. Doesn’t really seem fair since this is money for pain & suffering I have endured from Mesh getting infected giving me long term lasting effects that I will deal with the rest of my life? If they decide that I have to pay back the money would I have a case to fight them?

Victor Pena:

Sharma, if Lincoln decides you owe them money please contact one of our attorneys to discuss your options. However, if your policy is only for 18 months there may be little we can do for you.


We have gotten LTD for a little over two yrs now we were excepted for social security and going to get back paid, and Unum wants all the back pay. Nut we live in a apartment that is bug infested and have a bug man but until everyone hires them its a loosing battle. Plus I am disabled and need to use a wheel chair from time to time. We have found a home that meets all our needs for 39900 but can’t get a loan.

What happens if we use the back pay to purchase this home can we make payments to unum? Or is there a hardship program? We have already lost electronics to the bugs and can’t get them replaced under warranty cause of a bug infestation. Talked to owner and they said its my problem wont replace items. My husband is on a cpap machine, I’m afraid that is next then what do we do? Not to mention other issues they will not fix. I want out of this dump!

Attorney Jay Symonds:

Maxine, that is a terrible situation. You certainly have options as it relates to repayment to UNUM, including a negotiated repayment schedule depending on your monthly benefit and the amount of the overpayment due to UNUM. I suggest you contact our office and speak with one of the attorneys to address your specific questions regarding your situation.


Is a LTD lump sum payout amount negotiatable? My LTD (Cigna) was paying me $800/month then when my SSDI was approved the amount reduced to $100/month.

The recently sent me a lump sum offer. The benefit termination date for me claim is 4/12/2043. The present value of my claim is $20,000 at a 3.65% interest rate.

They are offering a full discharge at $8,000. Am I in a position to negotiate this amount if I have a lawyer?

They are offering to pay $250 to consult with a lawyer of my choice.

Attorney Jay Symonds:

Diane, you or an attorney on your behalf can certainly negotiate with CIGNA. I suggest you contact our office and speak with one of the attorneys to address your specific questions regarding your situation.



I was just diagnosed with pretty bad MS (walking and balance issues) and am receiving LTD (almost 5500 p/m) until 65 (41 now) from a large major company that has a 2 year any occupation clause. I was approved initially for STD then LTD without caus. I was instructed to apply and approved for SSDI after the first attempt without even having to appeal or anything after going to the SSA doctor. I have no other health issues and was wondering if it’s a good idea to approach the disability co about a settlement / buyout even though i have only been getting payments for about a year and the 2 year LTD cause hasn’t gone by yet? I was thinking because I was immediately approved for SSDi and my MS is pretty progressive and I have much back up via the MRIs and doctor visits.

Attorney Rachel Alters:

Hillary, you could approach them to see if they are interested in buying out the claim. Usually they won’t offer buy outs until they have approved you under the any occupation definition after 24 months of benefits. I can help you negotiate the buyout if they are interested. My email is You can contact me directly with any questions.

J. Ryan:

Hello. I’m 33 and have very aggressive MS. I have been receiving payments from Reliance Standard for two years now and my policy definition is changing from own to any occupation. I’m well documented and backed up by my neurologist and team of drs that I can not and should not work. I’m pursuing SSD and have a hearing on February 20th and according to my nasty insurance examiner my benefits will most likely cease in April. If I’m approved by SSD will Reliance smarten up and reinstate my payments? I plan to pursue them if I must At the federal level – I’ll lose $4000 per month which is more than what I’ll receive with SSD so I actually think abuyout would be ideal. Is Reliance known for reasonable buyouts? My SSD Attorney seems focused mostly on the social security and less on my private plan so I’m concerned. I hope they continue my policy and if they do can I request a buy out or is that not recommended? Thanks for your guidance!

Attorney Alex Palamara:

J. Ryan, I am sorry to hear of your issues with Reliance Standard. I really would like to learn more information about your claim. I would like to know what your previous occupation was, etc. Unfortunately, even if you get approved for SSDI benefits it doesn’t mean that the insurance company has to reapprove your claim or keep your claim approved. They must take into account such an approval, but it is not controlling on their decision under the disability policy. Typically insurance companies will not do a buyout until they make the decision that you are disabled from Any Occupation and that benefits will be payable for a long period of time. They also hesitate to do buyouts until they learn of the Social Security Administration’s decision regarding disability.

Please contact me so that we can discuss your claim and the possibility of a lump sum settlement.


Hello. I’ve been receiving Metlife LTD (purchased through my old employer) for about 3 years now for back injury. My benefits are non taxable and payable for life; I’m 50 years old and also receiving SSDI. What will be an acceptable number of years of payment if and when they decide to offer a buyout? Thanks.

Attorney Cesar Gavidia:

George, thank you for your question. The answer is different depending on the disability; however, with respect to MetLife they require that your disability prevent you from working in any gainful occupation, and that you have been approved for SSDI. In your case it appears that both conditions have been met. Please contact our firm and ask to speak with a disability insurance attorney regarding a buyout with MetLife.


Hi, I’ve been receiving LTD and SSD for many years now from Hartford. My question is regarding a loss of cost of living increases. Originally it was part of my disability plan. I received it for one year only then was informed that my company had cancelled their contract with the Hartford so I would no longer receive the cost of living increases. I went back to their original pamphlet and found something in the fine print that suggested something like that. It’s made significant financial difference over the years. My question is, has this practice ever been challenged?

Attorney Alex Palamara:

Marsha, typically the policy in place at the time of your disability is the policy that will govern your claim. Do you happen to have a copy of the original policy from the time you became disabled? If so, there may possibly be a way to get you the benefits you may be owed if there truly was a COLA owed under that policy. Please contact me at your convenience at 954-620-8300.


I have been recieving LTD payments with Unum $2910.00 a month, for 2 years, since 2017… Ssdi decision was Fully Favorable. I have been awarded $ 32,000.00 Feb.2019 Unum has not contacted me, as of yet? Would they offer me a buyout, or do I approach Unum? Have not signed any letters prior to recieving award amount. Unum has treated me very well over the years, I have read some horror stories about them? This would help me out, huge!

Attorney Stephen Jessup:

Animal, I would recommend you contact Unum to advise them of the receipt of SSDI. Unum will typically not negotiate any settlement while SSDI and SSDI overpayments are pending. You would likely be in a position to be able to negotiate a settlement. With that being said, Unum will have the incentive to try to settle for a low amount of the present value of the policy so you will want to be prepared ahead of time with valuations. Please contact our office to discuss your case in greater detail to determine the viability of a buyout and how we can assist you in maximizing any potential settlement offer.


Stephan, thank you so much for your quick response. I figured they would send me a letter stating the over payment amount. I have not touched the money, no one has told me what to do next? On Ssdi when could I ask for a buy out, seeing that I really could use the cash for betterments to my home and pay bills. Thank you again, this page is very informative!

Attorney Stephen Jessup:

Animal, you are very welcome. Please do not hesitate to reach out to us if you have any other questions.


Stephan, Unum sent overpayment letter online, we crunched the numbers and found they were off by $ 2500.00. We advised them of the figure and they confirmed it was a mistake on there part. Also added 30 days for payment. My question is: will they offer a buyout once this payment has been received?

Attorney Stephen Jessup:

Animal, they may very well be in a position to offer a buyout, but there are other factors they consider to determine if they will. Please feel free to contact our office so we can discuss further.


Hi, I will be coming up on my any occupation 2 year period in the beginning of next year after the holidays and have a chronic illness and have ssdi recently approved. The insurance company requested a field interview that my attorney will handle. Do you think since I have had an attorney the whole time I’m on claim will make them think twice about kicking me off LTD even with this investigation? Would it be reasonable to expect them to present me with a buyout since SSDI is in place and the 2 year time is only months away? Or will they wait until after that time? I heard about year end settlements and could the time left, the attorney, and my illness which is lifelong factor in? My LTD insurance co payment is 3k for 270 more months.

Attorney Stephen Jessup:

Josiah, if you are already represented by an attorney we would suggest that you speak with them to best answer your inquiries.


I have a permanent disability for which I have been approved/receiving monthly benefits for 3 1/2 years. I have three disability monthly payment components.First, I receive a FERS disability retirement pension from OPM plus my medical insurance. Second, I receive SSDI plus Medicare. Third, I receive in totality 70% from an employee paid after tax deduction allotment from Met Life.This is a group LTD with own occupation.Basically each component pays approximately 23% to equal the 70% disability benefit. I have approximately 12 1/2 years remaining on this policy.I received a call from Met Life after collecting for 3 1/2 years a buyout offer. No amount was given over the phone. I am awaiting the letter with the settlement amount. I’ve researched all of the factors to consider such as valuation, yield corporate bond index, mortality rate, COLA, Etc. The Met Life representative advised the lump sum buyout would follow the character of the policy and that I would not owe taxes on a lump sum since it was an employee paid allotment after tax deductions. Is this correct? Will accepting a Met Life buy out offer affect the OPM FERS disability plus insurance and/or the SSDI plus Medicare in anyway? Thank you for your time.

Attorney Alex Palamara:

Cautious, regarding the taxability of your claim and the potential lump sum settlement, it is best to speak with a tax attorney or an accountant. A lump sum settlement should not affect the taxability of your claim, however we have seen recent issues with Prudential settlements agreements where Prudential’s Tax Department believes that the settlement agreements effect the taxability of settlement money paid. Also, the new tax laws might be an issue as well. So please speak with a tax attorney or an accountant. Regarding your OPM FERS Disability Benefits or SSDI benefits, you will have to speak with attorneys that specialize in those areas as we currently do not.


Stephen, thank you for telling me to contact Unum. Unum contacted be by a letter on my online account. Overpayment was paid back weeks ago. If Unum offers me a lump sum buyout, what time of year do they usually offer one? I am so glad I was finally able to pay them back, could really use that buyout soon.

Attorney Rachel Alters:

Animal, if they are going to offer a buyout it will usually be after you have been on claim over 24 months and they have determine you are unable to work in any occupation. Please let us know if you would like us to assist you in a buyout negotiation should Unum decide to off you one.


Been on LTD for almost a year and was on STD for 13 weeks, my ltd is 50 percent of my pay per 40 hour work schedule. I have Aetna in a years time 3 checks have been late didn’t see a check it was a month late, do to the low monthly payment to me I have had the water and gas in my house cut off many times because I didn’t have any money for those bills.
I have 2 doctors appointments in June but cant go do to no healthcare insurance i haven’t been able to pay 300 a month every month for my portion of insurance. Any help would be great i have had left knee replacement surgery right knee surgery and back surgery I have peripheral nerve pain in my lower back that goes down my left leg and left testicle had this for years now.

Attorney Stephen Jessup:

Allen, have you made application for SSDI yet? That could potentially help you with the insurance aspect. With respect to Aetna, given the fact that the claim is approved (you are not fighting a denial of benefits) what assistance are you looking for? Monthly claims handling? Please contact our office to discuss your situation in greater detail so we can ascertain what assistance we may be able to provide.


I have been on Erisa claim with UNUM for over a year now for a spinal injury and I have 20 years left on the policy. I’ve had one failed surgery and my doc is recommending a complex double fusion, and possibly a third fusion following a year of recovery. I probably will not pursue additional surgeries. I have surprisingly already been approved for SSI after the initial application. In this scenario, do you think it’s feasible to request a buyout from Unum?

Attorney Alex Palamara:

Sam, potentially. It seems somewhat early for a buyout as they have likely not made a determination if you are disabled from “any occupation” and if you will be disabled for a long period of time. Contact us and we can assist you in approaching Unum for this potential buyout. Alex


Hello. I have received a buyout letter from Aetna, I’ve been receiving LTD benefits since 2011. I am 58 and have 7 years left to collect. This is the 3rd time they have offered me a buyout and this time I’m taking it into consideration more so than the last 2 times.The amt they offered (83,501.00) seems low, so I was wondering if Aetna typically accepts counter offers or not? I dont want to waste anyone’s time if they dont even give counter offers a look. I’m receiving $1566 per month with 84 mths left until I reach 65. How does a person know if their LTD payments are tax free?
Thank you Kindly for your time!!

Attorney Jay Symonds:

LA, you ask several very important questions. There are several variables at play, I suggest you contact our office and speak with one of the attorneys to address your specific situation.


I just won my SSDI appeal FINALLY and my disability policy changes to “any occupation” in 90 days. Will the fact that SSA literally just approved me have a factor in policy change with LTD company? I have UNUM. Would it be advisable to immediately ask for a buyout after the policy change date since you’d think since SSDI was JUST approved UNUM will consider that before trying to dump me. Since I have progressive multiple sclerosis I’m not expected to get better according to my doctor so will that be a contributing factor? Can I just ask Unum once date has past or do I need to hire an attorney?

Attorney Alex Palamara:

Mr. Jessup, the insurance company must take into account that the SSA has found you to be disabled. It doesn’t mean that they have to follow the decision of the SSA, but they must take it into account. Once Unum makes the decision that you are disabled past the change in definition of disability, they may be inclined to enter into buyout discussions. We can assist you with such. Keep in mind that prior to Unum concluding that you are disabled from any occupation, they will likely request an overpayment back. Call me so that we can discuss your claim.

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