What Are The Benefits And Drawbacks Of Settlements And Reinstatements?

The Employee Retirement Income Security Act (ERISA), a federal law, governs the rights of individuals insured by group plans or policies issued through nongovernment employers. Individual policies or those issued through a government employer are governed by state law. My Florida firm handles all long-term disability appeals and lawsuits filed under ERISA or Florida law.

Learn When Reinstatement Or Settlement May Be Better For You

When a lawsuit under ERISA is filed, the end goal is to have long-term disability benefits approved or reinstated. In some cases, however, insurance companies may wish to negotiate a settlement, in which the claimant receives a lump-sum payment in order to end litigation.

Whether to pursue reinstatement of long-term disability benefits or negotiate a settlement depends on two main factors:

  • Peace of mind: My firm has the experience and resources to handle complex long-term disability lawsuits. At the same time, many clients who reach this point in the process may be eager for a speedier resolution to their cases or be unwilling to risk the possibility of an adverse ruling. Knowing that you will receive a set amount may provide much-needed peace of mind after enduring a difficult, draining claims process.
  • Financial security: By the same token, it can be difficult for many people to manage a lump sum or survive without a monthly payment. With reinstatement, clients know that they can expect to receive a certain amount of money at regular intervals for a defined period of time while they remain eligible. For those who may not wish to ration out a lump-sum for the long term, it may be more desirable to pursue reinstatement.

No matter where you are in the process — just beginning to prepare your claim or assessing your options for an appeal — my firm is ready to help. To speak with a lawyer, send an email or call my Gainesville offices at 352-505-4790, toll free 866-544-3069.