Disability Insurance buy-out

[Frixxxx]

Ok peeps,

Got a question: For those of you who know, my wife became disabled on the job. We had long term disability insurance, so we receive a check to offset SSI. Now the insurance company called my wife and offered her a buyout which comes to almost 50% of total value.

So the question: Has anybody else seen this and have they countered, have they paid taxes on the income, and do they think it was worth it?

Inquiring minds want to know!

Thanks in advance!

Frixxxxx - your friendly neighborhood TSPTalk Moderator!

[pokerstar629]

Hope this link helps a little......
http://www.fpanet.org/journal/BetweentheIssues/LastMonth/Articles/TheDisabilityClaimBuyout/

[Warrenlm]

I chuckled at this part:

A disability claim buyout can provide additional funds for you as a financial planner to work with in meeting the long-term goals of your client. There certainly is an opportunity for new fees or commissions on your part. In the final analysis, it will be your objectivity that results in your keeping the client or getting referrals. Knowing where to go and giving your client options will enhance your overall credibility.