Is Taking a Unum Lump Sum Payment the Right Thing to Do?

Unum Group is the popular insurance group known for offering disability insurance in the United States and around the world. They are also known for denying legitimate claims and delaying investigation into claims that have been appealed. In general, they are known for doing whatever it takes to avoid paying out money for the legitimate disability claims filed by their policy holders, no matter how long the customer has been loyally paying their premiums. If you are one of the unlucky numbers who have been working with Unum on getting your disability claim approved and benefits paid, one common Unum claim denial tactic the company uses to save money is to just offer a settlement to the policy holder. It sounds too good to be true but you may wondering, is it the right deal for you – or is just another way for Unum to avoid what they rightfully should pay?

Recently the spouse of a Unum policy holder reported that Unum called and made an offer of a lump sum settlement. The Unum policy holder had reportedly been receiving Unum benefits since 2004. She is now 54 years old and Unum made a settlement offer that would have been 67% of the total amount Unum would have ended up paying over the lifetime of the benefit policy. The couple was unsure whether this was the best option for them for several reasons. One of the major reasons they were unsure on whether they should take the deal or not was if they did not take the deal they were afraid that Unum would continue to hound the policy holder with requests of additional doctor statements and other documents. They were also concerned on whether or not that was the best percentage of the total that they could get.  This couple is not alone. Here are number of considerations if you too have been placed in this situation.

Perhaps the first thing to remember is the reputation of Unum. They have been reputed to not be above doing whatever it takes to avoid hurting their bottom line. In fact, in the 3rd quarter of 2012, Unum beat the projections of financial analysts by posting a huge profit that was $1 million higher than the year previously. If you are being offered a settlement, they aren’t doing it because it is the right thing to do. Their bottom line is always going to be on their mind. They aren’t unfamiliar with or afraid of prolonged litigation so this isn’t the concern either.

Use the analogy of the lottery. If you win a jackpot of the lottery, you have the option to take payments towards the amount or take one balloon amount that is less than the total amount of the jackpot. A settlement from Unum is the equivalent of the balloon payment. It will likely be about 60-70% of what you are entitled. The reason they are making you the offer is they see it as a financially more viable option to pay you a lump sum now than to keep making payments. Because a dollar today isn’t worth the same as a dollar at the end of your payments. It costs them less money overall to pay out a lump sum now than to keep paying you.

One thing you can always do is ask for a higher lump sum. They worst thing they can do is to refuse but that doesn’t mean much. Unum is likely offering you the lowest feasible offer so they may have some wiggle room. It is absolutely essential that you at least attempt to request a higher settlement.

Everyone’s financial situation is different. Perhaps, even though it isn’t as good a deal for you, having money earlier is of greater value to you than a long term payment. These are options that everyone must consider for themselves. Always consider consulting a Unum lawsuit attorney for their advice on how to proceed. The Unum lawsuit lawyer will be experienced in this type of matter and will give you your legal options.

If Unum owes you money and has not offered any of the benefits they owe you, you may have to file a Unum lawsuit. Again, you absolutely need to consult a Unum lawsuit attorney to determine the best way for you to proceed. Visit the Unum/UnumProvident Disability Insurance Claim Denial Class Action Lawsuit Investigation page to learn more about your legal options. Take advantage of your free consultation from a qualified Unum lawsuit lawyer.