The National Association of Insurance Commissioners (NAIC) creates rules to be followed by insurance companies for “statutory reserving.” Such rules provide minimum reserves that a company must hold for claims that have been reported or incurred. The 1987 Commissioners Group Disability Table (CGDT) provides specific guidance for the valuation of group LTD claim reserves although the specifics of calculations should ...
HOW LONG DOES IT TAKE?
The lump sum is usually a single payment, but may also be disbursed in several installments. It can be offered at any stage of the claim because every claim is unique with varying sets of circumstances.
WHICH FACTORS PLAY A VITAL ROLE?
Your age and life expectancy, as well as your financial plans for the future, play crucial roles in whether you should accept the buyout.
HOW DO SETTLEMENTS VARY?
Every situation is different. Buyouts vary in terms of their taxable status, their present value, and how reasonable the offer is in general. It’s never a good idea to make these decisions on your own.