I am often asked to work with clients on a contingency basis, and the question comes up so often I have decided to explain, in detail, why it is better for claimants not to take on the financial burden of a contingency fee. It may seem on its face like the opposite is true, but bear with me. The numbers show how this really works – and it works heavily in the client’s favor.
For those who want to cut to the chase, here is the bottom line: long term disability insurance benefits over the life of the claim typically add up to between $300,000 and $500,000. In some cases, the number is even higher. A flat fee of $20,000 (payable over time), which is an average fee in my practice, is a small percent of the overall claim value. An hourly advance retainer of $8,000 -$10,000 has in many cases been sufficient to secure payment of tens or hundreds of thousands of dollars for my clients. A contingency fee would surely be a heavy multiple of these numbers, costing the client tens or thousands of dollars–or more.
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Let’s say you come to me with a problem needing guidance and a solution. You have two disability insurance policies. One of them is private or individual and was purchased with the intention of replacing $6,000 monthly of your salary. The other is part of a group policy from your employer, which you have paid for through payroll deductions. It was supposed to pay you $4,000 a month to replace your salary.
Both companies have denied your claim, and you’re realizing you will need to hire an experienced long term disability insurance attorney to fight back. How does math work?
My practice will ask for a retainer to be paid up front, with invoices for work being sent on a regular basis. The retainer will be used to fund the first burst of work – and hopefully to secure the payment of benefits.
The work begins: reviewing your policy in detail, reviewing the reason for the denial, reviewing all of the materials provided to the insurance company, identifying the missing parts of information, medical tests, occupational evaluations, and whatever other information would bolster your case. Case law for private policies and administrative proceedings will be reviewed for ERISA cases. It is a lot of work, with a great deal of attention to detail. That’s often where the success lies.
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You’ll receive invoices for our time invested in securing the success of your claims, which are detailed to provide you with information regarding actions taken on your behalf. Yes, it takes time to talk with the insurance companies, and no one likes to see billing for phone time, or the work preparing to make that call effective for your claim. But remember, you are paying for representation, advocacy and counsel on the spectrum of issues that arise. And those are calls you don’t have to make and often are not well equipped to handle – the reason why you have engaged an experienced short term disability insurance attorney.
When the decision comes in and the case is successful, you have paid your fees. Your benefits now come in and they belong fully and entirely to you. We secure direct deposits often for our clients to have security monthly.
Read More: How a Long Term Disability Law Firm Can Help You Secure Benefits?
Many of my colleagues do great work. I often recommend them to clients who will only work on a contingency basis. Many offer a variety of other fee structures, and I respect their billing and fee structure decisions. But by working on a retainer fee basis, costs are contained. Over the course of my practice, I have secured more than $300 million for my clients – many of whom continue to secure regular monthly benefits, while enjoying my continued representation for little or no cost.
A successful track record of more than twenty years in this challenging practice area should not be taken lightly. I am proud of the work I do for my clients, who are appreciative of their results. My peers have recognized the quality of my legal skills, with a 5 of 5 AV-Preeminent rating from Martindale for many years, Super Lawyer listings for many years and a high rating on Avvo, a consumer-facing website. If you’re facing a problem with your disability claim or anticipate problems, I invite you to call and speak with me personally to discuss your situation.
