Short Term and Long Term Disability benefits are a very valuable asset providing entitlement to periodic monthly payments. In assessing the value of such cases, it is important to understand how significant that income stream may be.
The entitlement to benefits of a very valuable asset usually runs through age 65 or through what is known as the “Social Security Normal Retirement Age,” a date which varies depending on your year of birth. So, if you are age 55, have an entitlement to age 65 and a $1,000.00 per month entitlement, the claim has a total gross value of $120,000.00. This is a significant asset which needs to be protected.
Now, I want to make sure you understand the true value of your claim. The concept of present value needs to be understood. The simple explanation is that $1,000.00 payable ten (10) years from now is not worth $1,000.00 today. A good way to look at it is to consider how much money would the very valuable asset have to put in the bank today to have your $1,000.00 ten (10) years from now. Of course, it is not just one payment we are talking about but an “income stream.” If you have questions about this evaluation process, please give me a call and we can work it through.
This topic is being addressed because it is my belief that there are a lot of people who are waking from these claims at the first sign of resistance from the insurance company, which is, of course, what they want you to do. They are resisting because the insurance company understands the values involved. That’s why they employ so many people doing all that calculating. A very valuable asset will show the value of your income stream; therefore, so should you.
Please keep in mind that the foregoing is not intended as legal advice applicable to any individual person’s unique legal situation. Its sole purpose is to give a general idea of the existing status of the law as it applies to the point of law addressed above. You cannot rely on the foregoing as legal advice. You cannot make legal decisions based on its contents. If you have questions arising out of this point of law, you should contact an attorney who routinely handles claims involving policies of disability insurance. The law offices of Herbert M. Hill, P.A. handles such cases and would welcome the opportunity to discuss your case with you, at no charge. You can contact me at 407-839-0005 or at hmh@herbertmhill.com.
