LTD “re-training” lowball buyout

Disability Insurance
1

Hi,

I’ve been off work and receiving LTD monthly benefits for approximately 5 years. I’m also approved for CPPD.

I have 5 different family physicians statements forms saying I’m not fit for ANY job, also one psychologist.

The insurance company sent me for 2-day of 4 hour physical and a 3 hour cognitive test. I supposedly performed well enough that I could hold a job with low to moderate physical demands. I was feeling great those two days but my health conditions flare up constantly and I, 100% know that I can’t hold a “gainful” occupation.

They now offered me a buyout of 150k for self retraining, but also put in the offer letter that my benefits will not be stopped if I refuse the offer.

A simple calculation adds up to over 1.1million dollars of benefits that they would pay me until I’m 65.

I want to write them a letter with arguments and an amount I am willing to accept (25% less than 1.1 million, which is $825k).

What are those low ball offers? And is it a good idea to negotiate myself?

Thank you.

2

IMHO, the low ball offer is just a distraction for what they are setting you up for in the future, a denial of LTD…so…

You definitely want to get on record immediately with a letter stating the opposite of what their assesment states. Make sure your doctor(s) provide supporting letters notifying the insurer that you are not able to working any gainful employment, and that you are not able to work the hours stated in your assesment (if that is indeed the case).

As for negotiating a better lump sum payment, I wouldn’t waste my time. If there is no pending litigation the insurer has no motivation to offer you anything than what they already have.

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3

I don’t think settlements are worthwhile for most people.
Keeping the monthly benefit is usually better for you.

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