Settling a Long-Term Disability Claim with the Insurance Company in Clarksburg

Many people in Clarksburg wonder about the advisability of settling a long-term disability claim with the insurance company. A settlement could provide certainty, and the offer may appear generous. However, it is important to calculate the value of what you may be giving up in order to accept the settlement.

An insufficient settlement could leave you stranded and unable to provide for future needs. Before settling a long-term disability claim, it is a good idea to speak with a Clarksburg attorney familiar with disability claims who could explain the potential ramifications and help you weigh your options. Reach out to an experienced ERISA lawyer today.

Factors to Consider Differ Depending on the Situation

Insurance companies most often offer to settle long-term disability claims in two types of situations. A settlement may seem like a good financial investment to an insurance company that has been paying benefits for a chronic long-term condition. Therefore, in situations where an insurance company is already paying long-term benefits, they may offer to pay a lump sum and discontinue the regular payment of disability benefits.

The other situation where insurance companies often propose a settlement is when the company is embroiled in a lawsuit over a claim. Paying a single payment to settle the claim saves the company of the expenses of administering and paying long term payments and continuing legal action.

In either situation, settling a long-term disability claim with the insurance company in Clarksburg offers some distinct benefits and well as potential disadvantages. A settlement provides predictability, but not always security.

Benefits of Accepting a Settlement

The primary benefit of settling a long-term disability claim is the guarantee of a payment. If a lawsuit is pending, there is a chance that the court will rule in favor of the insurance company, leaving the person suffering the disability with no benefits at all. Even if an individual is already receiving long-term disability benefits, they might worry that the payments could be discontinued due to new standards or poor fund management. If that individual accepts a settlement, the money is guaranteed.

Another benefit of accepting money in a settlement with the insurance company is that the individual gains the ability to invest that money and potentially earn more than if benefits were paid over the course of several years. Insurance companies are well aware of these benefits, though, so the amount of money they offer will be much less than might be expected.

Questions to Ask Regarding a Settlement with an Insurer

Before settling a long-term disability claim with the insurance company, it is a good idea to gather as much information as possible to weigh the decision. Some issues to consider include:

  • Whether a case will be decided on the basis of state insurance law or federal ERISA laws
  • How a doctor has documented a disability
  • The long-term prognosis
  • How the insurer is calculating the present value of future payments
  • The strength of the evidence supporting the claim

An attorney could help raise considerations that have a bearing on a particular case.

Seek Help Settling Your Disability Claim from a Clarksburg Attorney

Insurance companies offer to settle long-term disability claims every day. You, on the other hand, probably do not have that same degree of experience in evaluating the factors that go into calculating a settlement offer. Therefore, it can be helpful to seek advice from someone familiar with the process.

Settling a long-term disability claim with the insurance company in Clarksburg can provide stability, but it is wise to consider whether an offer is sufficient to meet your needs. In the end, it is your decision to make, but you are more likely to feel confident about the outcome if you gather enough information to make an informed decision.