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Longterm disability Pay out

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aussieinmiss

Junior Member
What is the name of your state (only U.S. law)? Mississippi

My husband lost his leg in a freak accident and was paying for long term disability at work. after the accident SSDI was immediately approved and money paid back to insurance company. due to the Fact our home is not accessible for my husbands wheelchair (when not using prosthetic limb) we have been offered a pay out of $64,000. the problem is the insurance company owes us $240,000 in payments until my husband is 65 which is 25 years from now. my question is will getting a lawyer force the insurance lawyer to negotiate a higher (FAIR) price or are our hands tied? he say he might willing to up one more percent but this may be a negotiation tactic.

lost and confused and would appreciate any advice....


Aussieinmiss
 


LdiJ

Senior Member
What is the name of your state (only U.S. law)? Mississippi

My husband lost his leg in a freak accident and was paying for long term disability at work. after the accident SSDI was immediately approved and money paid back to insurance company. due to the Fact our home is not accessible for my husbands wheelchair (when not using prosthetic limb) we have been offered a pay out of $64,000. the problem is the insurance company owes us $240,000 in payments until my husband is 65 which is 25 years from now. my question is will getting a lawyer force the insurance lawyer to negotiate a higher (FAIR) price or are our hands tied? he say he might willing to up one more percent but this may be a negotiation tactic.

lost and confused and would appreciate any advice....


Aussieinmiss
I just want to clarify...

You are saying that you husband is now receiving SSDI and a monthly long term disability payment. You need money to make your living arrangements more wheelchair friendly. The long term disability people are willing to "settle" his case for $64,000 instead of paying him a monthly payment for the next 25 years. You think that they are offering too little. Am I understanding correctly?

The only motive that the insurance company has to offer a lump sum settlement is if it saves them money...and what they are offering is saving them a whole heck of a lot of money, even amortizing the lump sum payment at 5.5% per annum they are stilling saving about 50%. Have you looked into a home equity loan to finance your home renovations instead? You would actually come out ahead over 25 years to borrow the money instead of taking a lump sum disability payout.
 

aussieinmiss

Junior Member
Longterm Disability Payout

Thanks for your response and actually the are charging a 6.56% interest rate. the guy is the biggest douche you will ever meet; however my question is do I need to get an attorney? I want to know if getting an attorney will force the price higher or will the insurance guy continue to offer less than 40%. Now that he has sent a written offer can I go to court or to a mediator? what are my LEGAL options? sorry but really don't want to put my home at risk since it is completely paid for. Thank you for your response :)
 

cbg

I'm a Northern Girl
Getting a lawyer will not force him to go higher. It might convince him to negotiate further. It might not. But it will not force him to do so, if by force you mean legally compelled.
 

LdiJ

Senior Member
Thanks for your response and actually the are charging a 6.56% interest rate. the guy is the biggest douche you will ever meet; however my question is do I need to get an attorney? I want to know if getting an attorney will force the price higher or will the insurance guy continue to offer less than 40%. Now that he has sent a written offer can I go to court or to a mediator? what are my LEGAL options? sorry but really don't want to put my home at risk since it is completely paid for. Thank you for your response :)
Ok...lets look at this a different way. How much money do you really need to renovate the house to make it wheelchair friendly? Right Now, based on the figures you gave us your husband is collecting about 833.00 a month in long term disability payments. Those payments are apparently guaranteed for 25 years if your husband does not accept a lump sum payout. If he does, then that 833.00 a month of income is completely gone.

Now, if you had to borrow 40k to renovate your home, at even a 6.5% interest rate, your payment for interest and principal would be about 270.00, leaving you 563.00 a month in disability income after paying the mortgage.

If you had to borrow 60k to renovate your home, at that same 6.5% interest rate, your payment for interest and principal would be about 405.00 a month...leaving about 428.00 a month in disability income after paying the mortgage.

What puts your financial life at the least risk?
 

aussieinmiss

Junior Member
disability pay out

silverplum I apologize and thanks

CBG: Thank you actually answering my question. If we do not have a legal leg to stand on then we will refuse the offer. I appreciate your candor

LDiJ: I would never risk my home under any circumstances especially with the current state of the economy, past crashed and current housing market, and the fact we will shortly be going back to Iraq. My husband receive $398 dollars a month not $833. Was looking for legal advice on whether to settle disability claim will ever risk m home but thanks
 

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