If the insurance company has denied your claim for long-term disability insurance benefits, you have options. You can file a lawsuit against the insurance company, appeal their decision, or negotiate a settlement. When you and the insurance company agree on a payment amount, it is a settlement, the amount you originally claimed will be more than the settlement amount.
Settlement or Court?
Because a settlement is not as expensive as going to court and it can be over sooner, most insurance companies want to negotiate a settlement. Here are some things you should consider:
• Are you going to ever recover from your disability or will it remain an ongoing condition?
• Is money something you need right now?
• Do you currently have medical bills you need to pay?
• Do you have medical bills that will continue?
• Do you know and understand all of your options?
• Consider a lawyer to help you negotiate and go through mediation to receive a settlement?
• Do you understand the insurance company’s offer?
• For short-term, or, long-term, will the settlement be enough?
• Insurance companies would rather settle.
• Settlements are usually performed quickly, unlike trial.
Types of Settlements
With a variety of different aspects to consider about settlements, you could be offered one of two types of settlements. It is based on your requirements and choice the one that you will opt for.
Reinstatement Settlement
Reinstatement settlements can go either way, you could get benefits long-term or not. You may only receive arrears, which are the payments that only cover benefits from the denial date to the settlement date. It could include interest and some legal costs. This type of settlement does not guarantee benefits after settlement dates.
Lump-Sum Settlement
This is a one-time payment your insurance pays you. It is final on the following claims: long-term benefits to date of settlement and future payments after the settlement, including interest and legal costs. The advantage of a lump-sum settlement is it could cover your long-term benefits for an amount beyond the trial and beyond the settlement date. The disadvantages to this type of settlement is it will be a lot less than what you could receive over time. This is only advantageous for the insurance company because it saves them the time and expense of a lengthy trial.
A Settlement Claim Form
Settlements require you signing a claim form which is full and final. It is proof you agree to settle and will not pursue any other legal action against the insurance company. It sets the terms of the benefit and ends your claim against the insurance company and should be done after a consultation with your Personal Injury Lawyer in Brampton.
