If you’ve been hoping to rid yourself of your disability claim, now may be the time to do it. Lump-sum settlements are being offered, not only Unum (known as the settlement guru), but by other insurers as well. While in the past, I have often argued against accepting a settlement, times have changed, and this may be your chance to as people tell me, “get out from under.”
Just to be clear, “settlement” of a disability claim is not for everyone. Years ago, I had a client who accepted a lump-sum offer and then once signed and sealed, couldn’t stop crying because getting a check each month represented security to her. When the checks stopped she just couldn’t take it even though she had quite a sum of money in her bank. Psychologically, taking the settlement wasn’t a good decision for her.
I have a very good Settlements article I wrote a few years ago that I’m happy to email you for any amount of donation from my website: http://www.disabilityclaimssolutions.com. But, bottom line, the settlements I’ve already reviewed, from Unum and The Hartford seem to be reasonable to me. And, the companies want to resolve these issues before year-end. Therefore, insureds have nothing to lose by asking for a settlement, or considering one.
The only thing I’d ask is that insureds make sure 1) they know ahead of time how the money will be invested and what the expected return will be 2) the tax consequences of a lump-sum. If your benefit isn’t taxable, all the better.
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