Cigna-buy out

[Babebahn]

Hi Everyone:
Got a letter from Cigna which is my "Long Term Disability Carrier" they want me to cash out/lump sum pay out for the remaining benefit. They say my benefits end in 2021 which is weird because I was told it was a lifetime benefit. Anyway, my calculations do not match what they are offering (of course) Hypothetically, if you were paid $100 a month/$1200 a year for 11 more years then you would get $13,000...right....Cigna is offering a 1/4 of that to cash out..In the paperwork, they suggested I contact an Attorney who specializes in Disability/Insurance Disability, so I called my work comp atty who told me to call the Bar Association...So I did, where I go the run around, I called every type attorney that was suggested only to be told "I can't help you, you might try..."Anyway, does anyone have any suggestions? I have to get an answer back to Cigna by Feb 16th...not much time.

[jayne]

all buyouts are at a discount price.....you have to decide if its worth it...do you need a lump sum right now or would you rather have the 100 a month....I took the lump sum....I would think if you would get 13 thousand by doing it month by month they would at the very least offer 1/2 and closer to 2/3 problem is do you want to share what you do get with a lawyer? I would counter offer at 10 thousand and settle at 8.....why do you need a lawyer to counter offer?

[1171]

you need to confirm lifetime or 11yrs before you can price the buyout.
when you get a lump sum you have to reduce it by the interest.

[Still in Limbo]

Depending on Your Age, They May be saying 11 Years which May be when You are Eligible for Retirement, and Maybe that's when Your States w/c Medical Ends. When You Receive a Lump Sum over a Monthly Amount, the Ins. Co.takes into Effect the Inflation Rate, and what Money is Worth Now, vs. what it will be Worth Throughout Monthly Payments. Money Now is Worth More than it will be in the Future Years to Come is Their Reason for Offering Less. If the Numbers You have given are True Numbers, You should Settle for around $8-9500 in My Opinion. If the Numbers are Higher, or You are on SSDI, a Set-Aside would be Needed for Your Medical. So as You can See it Depends on a Lot of Variables, and the Reason You May be having Trouble Finding an Attorney is They May not Feel They can Make enough Money on the Case to Bother. I Hope this Helps a bit, and Best of Luck!!

[Babebahn]

Thank you everyone for your opinions/replies...
Jayne: The paperwork says to consult an Attorney before making a decision either way.
1171:I have no paperwork that says my LTD was ending in 2021, I was told by HR that this was until the age of 73 which will be in 20 yrs...so I don't know what to do, the original papers from the LTD doesn't designate an ending date either, so where they got the end date all of a sudden beats me.
Still: I know what you mean...it's like a toss up...the figures I gave were just made up. The Cigna representative was very nice but I really don't think they would be willing to "bargain" with me to get even half...you know how insurance companies are...
Thank you all!

[Bad Boy Bad Boy]

Is it possible you call and ask the HR dept to send you something to the fact of a ending date. I wouldn't explain all the rest to them. Then lets see what compares to what...

[leavntn]

I have LTD Policy from Cigna, it states that benefits will be paid until I reach age 65. This policy was paid for by my employer. They supplied me with the copy of the policy when I became eligible. I am just hoping they dont try to buy me out too..Good Luck getting this sorted out.

[1171]

it's possible they are using a life expectancy table to estimate the length/duration of possible payout
http://www.ssa.gov/OACT/STATS/table4c6.html

[Babebahn]

Thank you, I called HR and they will be sending me information (hopefully) had to leave a message...