The Value Of A Long Term Disability Case For Purposes Of Settlement

What is the Value of my Long Term Disability Case for Purposes of Settlement?

Once a Long Term Disability claim has been denied for the final time, or exhausted, a lawsuit may be filed. At this point in time, we begin to have serious discussions with our client regarding the actual value of their claim.

This point is most often discussed in the context of a mediation, which is a form of voluntary, alternative dispute resolution, during which a client will usually need to make a decision whether to accept a lump-sum offer. Many considerations go into this decision. We like to call this decision a business decision, because it is best, to the extent possible, to leave emotions out of the considerations as a claimant must make a decision regarding their long-term financial future. And this can be very hard to do, so we do our best to ensure our clients have the most information with which to make their decision.

We calculate the present value of their claim and provide a breakdown of the income streams they would have expected had their claim not been improperly denied. The present value calculation is intended to capture the total value of Short and/or Long Term Disability benefits in dispute. These totals fall into two categories, past and future benefits. Both categories are calculated by multiplying the number of months benefits are due by their net monthly benefit. The net monthly benefit can be found by subtracting offsets (other sources of income which are set out in the policy) from the total gross monthly income. The past and future benefits are brought to present value using the appropriate factor to account for inflation and/or interest.

If you are offered a lump sum buy-out from your Long Term Disability insurance company, you should consult with an experienced disability benefits attorney. If you have any questions about settling your Short Term Disability or Long Term Disability claim, please give Herbert M. Hill, P.A. a call and we would be glad to answer any questions you may have. We are available at 407-839-0005 or, toll-free, 844-454-59995, If you would like, after discussing your case, we can set a conference. In most circumstances, that conference would be free of charge but in no circumstance would you be under any obligation to hire me nor would you feel any pressure from me to do so.

Herbert M. Hill, P.A. is a law firm located in Orlando, Florida with a practice extending throughout the state of Florida. While the vast majority of cases handled are for disability insurance benefits, areas of practice include employee benefit claims of all sorts. The firm handles any claims arising under the Employee Retirement Income Security Act (“ERISA”) for disability benefits, medical benefits, retirement benefits of any sort, including pension, 401k, termination agreements or the like as well as claims arising under private disability policies.