Has anyone ever gone thru the process of settling their claim with their LTD carrier by accepting a bulk payment ? Mine mentioned the possibility after their next medical review of file.
I am guessing that they will review my file, obtain some actuarial impact on the likelihood of me either returning to work or dying before I turn 65, and if likely, at what age. If they think in their favor, they will probably offer to pay at some discounted rate.
Has anyone been thru this? Is there a standard discount rate they offer? If you accepted bulk payment,what was your experience? If offered and you turned down, was there any subsequent downside? Did the carrier seem to monitor more frequently and second guess your claim?
I know I need to talk to financial planner/tax accountant on implications of taking a bulk settlement. And have my LTD lawyer review any offer. I have 11 years left on my LTD policy. Having to deal with one less group is so tempting, but I know I need to do due diligence before deciding and look at potential investment return vs. discount rate and also tax implications of bulk payment. Any other thoughts?
Thanks for any insights.
I am guessing that they will review my file, obtain some actuarial impact on the likelihood of me either returning to work or dying before I turn 65, and if likely, at what age. If they think in their favor, they will probably offer to pay at some discounted rate.
Has anyone been thru this? Is there a standard discount rate they offer? If you accepted bulk payment,what was your experience? If offered and you turned down, was there any subsequent downside? Did the carrier seem to monitor more frequently and second guess your claim?
I know I need to talk to financial planner/tax accountant on implications of taking a bulk settlement. And have my LTD lawyer review any offer. I have 11 years left on my LTD policy. Having to deal with one less group is so tempting, but I know I need to do due diligence before deciding and look at potential investment return vs. discount rate and also tax implications of bulk payment. Any other thoughts?
Thanks for any insights.
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