How Much is My Case Worth?

In this video, we'll provide you with some basic information on how we determine the monetary value of your long-term disability claim when it settles. This process is called valuation.

Your mediation lawyer will determine a reasonable settlement for your specific case. Generally, there are two ways your case can be settled:

First, your case could settle for a reinstatement. This means the insurance company will put pay you the arrears owed, put you back on claim and then resume monthly benefit payments. However, this is rare, as many clients prefer not to have an ongoing relationship with the insurance company because of the uncertainty of future payments.

Second, and more commonly, your case will settle for a lump sum. The insurance company pays you a one-time sum covering arrears and future benefits.

How much can you expect from a lump sum settlement? It depends on several factors:

1. Your Monthly Disability Benefit Amount: This is based on a percentage of your pre-disability income, excluding bonuses or discretionary payments.

2. Canada Pension Plan - Disability Benefit: The amount you receive, or could receive, from CPP-D is deducted from your monthly long-term disability benefit to determine your net benefit.

3. Future Benefits Calculation: Insurance typically covers up to age 65, but the lump sum will definitely be less than the total monthly benefits you'd receive until then. We strive to get you the best settlement possible.

Several factors influence the future benefits you might receive in a lump sum:
- Your age
- The nature of your medical condition

- Your medical records and information
- Your qualifications for other work
- Other evidence in your case

For any case-specific questions, your mediation lawyer is available to provide a detailed assessment as settlement discussions approach.

Finally, let's touch on Extra-Contractual Damages, which are damages above and beyond your policy benefits. These are rare in Canada and usually awarded only in exceptional cases. While we include these in the Statement of Claim to protect your rights, it’s unlikely the insurance company will agree to them in a settlement.

I hope the information provided in this video has been helpful to you. If you have any questions or concerns, please let us know.