The Ortiz Law Firm handles lump sum or “wash out” settlement negotiations. Sometimes the disability insurance company will come to you and offer to “buy back” the policy. This means that the insurance company will give you a lump sum amount of money to buy you out of the policy. In exchange for the lump sum settlement, you agree to cancel the policy and can no longer collect any more monthly benefits.
If you would like professional assistance in negotiating your settlement with the insurance company, you can contact The Ortiz Law Firm at 850-308-7833 or contact the firm by clicking here.
One of the first questions claimants have is how does the attorney’s fee work in this type of settlement negotiation. I’ll even tell you right here how we handle these types of claims:
- By the hour. You can pay an hourly rate for the time spent in negotiating your claim. This is fee is paid whether the claim ultimately settles or not. It typically begins with a retainer, and the fees are drawn from the retainer.
- On a contingency fee basis. If the insurance company has not made any settlement offer to you, then the fee is a percentage of the total settlement. However, our firm does things a little differently than most law firms if you already have a settlement offer “on the table”. If the insurance company has already extended you a lump sum settlement offer, then your contingency fee would be a percentage only of any amount over that which has already been offered. For example, let’s say the insurance company has already offered you $75,000.00 before you come to see me. Then let’s say I accept representation, and negotiate that the insurance company agrees to pay you another $25,000.00 for a total settlement of $100,000.00. If you have a 33 1/3% fee agreement, the fee would not be 33 1/3% of $100,000.00, or $33,333.33. It would only be 33 1/3% of the extra $25,000.00 I negotiated for you, or $8,333.33. There is a big difference between $33,333.33 and $8,333.33. There are some firms that will charge you 1/3 of the total amount even though the insurance company already extended an offer to you.
If you are seeking legal advice in negotiating the top lump sum settlement, your best bet is to contact an attorney experienced in such matters. The Ortiz Law Firm can be reached at 850-308-7833.