There are several reasons why you may be asked by your Long-Term Disability (LTD) company to pay them back the benefits they already paid you. The request is usually as a result of an overpayment claimed by the insurer. The overpayment can be due to your recent receipt of deductible income from a source considered offsetable under your policy. The overpayment can also result from a miscalculation due a mistake by you or your disability insurance company.
HOW LONG DOES IT TAKE?
The lump sum is usually a single payment, but may also be disbursed in several installments. It can be offered at any stage of the claim because every claim is unique with varying sets of circumstances.
WHICH FACTORS PLAY A VITAL ROLE?
Your age and life expectancy, as well as your financial plans for the future, play crucial roles in whether you should accept the buyout.
HOW DO SETTLEMENTS VARY?
Every situation is different. Buyouts vary in terms of their taxable status, their present value, and how reasonable the offer is in general. It’s never a good idea to make these decisions on your own.