I have gone through the forum and your blog posts on lump sum payout and issues with LTD settlement.
I am on LTD for more than 12+ years and CPPD and reaching 60 soon. I have requested the possibiltity of settlement with the insurer.
I understand it’s not beneficial to ask for a settlement in approved long duration LTD. However, I initiated the request due to personal living situation.
I did the Present Value (PV) calculation with the help of an Actuary
I received an offer ( no tax) roughly 20% of PV which is approximately just over 3 years worth of payment.
I read some where that if the settlement discussion is not initiated by the insurance company, the offer won’t be more than 5 years of LTD payments. I was expecting at least 4 to 5 years worth of yearly payments or 40 to 50% of PV and not the typical insurance initiated settlement in the range of 65%
Based on communication so far, it seems that insurer offer amount is not going to change. Considering this, I have the following questions:-
Does getting my complete file under privacy request help in understanding how my settlement request was evaluated? Will I be able to see their present value calculation, additional factors in arriving at the $ figure or will those be shaded?
Does asking for complete file at this stage cause any issues?
Can I make a counter offer stating the (lowest ) amount that I am willing to consider?
As the request is initiated by me, Is it mandatory to accept the $ amount offered?
What are the repercussions of not accepting the offer and willing to continue with the monthly payments?
Thanks very much for all your help.