“Legal disability” is a legal term of art used to refer to situations where the law does not allow a person to engage in his or her profession, even though he or she may be physically and mentally able to do so.  Some examples include incarceration, revocation or suspension of a professional license, and practice restrictions imposed by a licensing board.

Click here to learn more about the difference between “factual disability” and “legal disability.”

Lump-Sum Buyout

A lump-sum buyout is essentially a settlement of your claim, where the insurance company agrees to pay you a certain sum and you agree to release them from any further obligation to pay you disability benefits.  If your claim ends up in litigation, the insurance company may offer a buyout in order to avoid the risks, costs and time associated with the lawsuit.  Outside of the litigation context, insurance companies typically will not offer buyouts unless they believe that you are totally and permanently disabled.

Click here for more information about lump-sum buyouts.