Filing for long-term disability is a very complex issue. Injured parties are often subjected to many medical tests and interviews to determine if the disability that is being claimed meets all the guidelines of long-term disability and if they can or cannot return to active duty at their employment.
These reasons alone are enough to need the services of a long-term disability lawyer. However, once all of these issues have been settled and the insurance company has agreed that you are indeed disabled, the settlement process begins, and this can be just as complex as the initial claim.
Understanding Long-Term Disability Settlements In Ontario
When the insurance company has reached the point of making a long-term disability settlement offer, they have two options. They can make an offer to reinstate your benefits or make a lump sum payment for your claim.
The type of settlement offered will be based on several factors. Your long-term disability settlement lawyer will explain the benefits and drawbacks of each settlement so that you can make an informed decision and settle your case.
Reinstatement of LTD Benefits
If it is determined that your long-term disability qualifies for reinstatement, the insurance company will most likely offer to pay any benefits that you have not received up until the time of the settlement plus interest, money towards your legal fees, and may offer full or reduced payments for the future.
For some people, this is a valid solution. Younger injury victims find that these extended payments can be very helpful. Others who may return to work in the near future may also find this a beneficial settlement. However, it should be understood that these settlements do not mean that at a later date, the insurance company will not stop your benefits again, and you may have to go through this entire legal process again.
If the injury victim feels that the reinstatement offer is not in their best interest, they can continue the legal process to seek lump sum long-term disability settlements.
Understanding Long-Term Disability Lump Sum Settlement
When you are being offered long-term disability settlements in Ontario, one of the most preferred options will be the lump sum settlement. This type of settlement can be a very complex issue because it requires a significant amount of calculating benefits and your lawyer and the insurer often will have dramatically different figures.
There are many factors that must be included in a lump sum settlement. This includes factors such as:
- The amount of future payments you would have received if you continued receiving benefits
- The number of payments you made on your policy after you have become disabled
- The amount of interest that has accumulated on unpaid benefits
Other factors will also be addressed when calculating a lump sum payment. This is why it is essential to have a lawyer managing your claim. Your lawyer will make sure that the insurance company includes all areas of compensation and that the amounts are fair and complete.
Another issue that your lawyer will have to address is the tac issue regarding your payment. Different factors come into play to determine f the settlement is taxed or not. Your lawyer will make sure that you are treated fairly in this respect so that you are not paying taxes on income that should not be taxed.
Disability settlements are complex issues. If you are dealing with a long-term disability claim, it will always be beneficial to work with a long-term disability lawyer throughout the process. Having a lawyer manage your claim and settlement is the easiest way to protect your rights and receive the maximum amount of compensation.
