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.

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