ASK A LAWYER: Lump-Sum Payouts
and the ‘Recurrent Disability’ Policy Provision

Can I request a lump-sum payout from the insurance company if I am receiving monthly benefits?

It is possible to request a lump-sum payout; however, many long term disability insurers will not be prepared to consider this option, and if they are, they may not be prepared to pay an amount that would be acceptable to many claimants. Insurers are often very suspicious regarding the motivation for such a request when monthly benefits are being paid, and will usually only consider paying out the claim for a significantly discounted amount.

My insurance company forced me to return to work even though I am disabled. I am struggling and cannot continue working. Do I have to submit a new claim?

The question of whether a new claim must be submitted if you cannot continue will usually depend on the “Recurrent Disability” provision in the policy, or the clause in the policy that deals with the impact an attempt at returning to work will have on future entitlement in the event that the return attempt fails. You should carefully review the policy terms in your specific case to see how this works in your particular circumstances. SP

The Share Lawyers Community Donation Program honours clients who refer friends or family to Share Lawyers with the case accepted and client served.

For this issue a donation has been made to the Canadian Breast Cancer

Craig W. Nicole L.B.
Darrell B. Pamela W.
Dylan G. Peter D.
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This is one more way for Share Lawyers to thank those who refer friends or family.

Bernard, who is noted for his gracious manners, was awakened one morning at 4:44a.m. by his ringing telephone.

“Your dog’s barking, and it’s keeping me awake,” said an angry voice. Bernard thanked the caller and politely asked his name and number before hanging up.

The next morning at precisely 4:44 a.m., Bernard called his neighbor back. “Good morning, Mr. Williams. I’m just calling to say that I don’t have a dog.”