When you are involved in a dispute with your insurance company over your claim for long-term disability (LTD) benefits under ERISA, the insurance company may offer you a settlement or lump sum buyout of LTD benefits. In typical cases, you would receive your LTD benefits in monthly installments over time. If you settle your ERISA-governed LTD claim, you give up your right to future benefits in installments. You will receive a lump sum and then you will receive no further benefits. If you change your mind in the future, then you will not be able to go back and get more benefits.

Various factors can impact whether it is the right decision for you to accept a lump sum settlement. Some of the factors that you might consider in making this decision might include:

• Current age and life expectancy
• Financial status and current income
• The likelihood of you returning to work in the future
• Whether the offer is reasonable under the circumstances

For instance, your age and life expectancy are important because they directly impact the amount of your claim. Once you pass away, you will receive no further benefits. Therefore, if you are a younger person and you have a longer life expectancy, your disability claim may have more value than a claim for a much older person with a much shorter life expectancy. If you expect to receive benefits for 20 years or more, then it may be in your best interest to receive continuing benefits, rather than a lump sum. You will have to balance which option is more likely to give you the greater amount of benefits.

Obtaining long-term disability coverage can be essential to protecting your future. When you initiate a claim under this coverage, however, you need to be aware of your rights and responsibilities, which may necessitate legal counsel. At Bonnici Law Group, we offer you client-centered representation at all stages of the long-term disability benefit claims process. When you need the kind of help that only an experienced long-term disability benefits attorney can offer you, contact Bonnici Law Group at 858-261-5454 or help@bonnicilawgroup.com.