If you are trying to win a disability claim in court, the best thing you can do to help your case is to hire a competent disability lawyer who will help you from start to finish. Unfortunately, the process can be a long one — and, as a result, an expensive one. Many disabled individuals assume that because of the high cost of hiring a lawyer on an hourly or flat-fee basis, they simply cannot afford to have disability representation throughout their case. However, that doesn’t have to be the case, mainly because disability attorneys usually charge their clients based on a contingency fee, rather than a flat fee or an hourly rate.
A contingency fee is unique because it means that an attorney will only charge you if he or she wins your case and you receive a settlement or disability benefits from your insurance company. The fee is set at a percentage of the ultimate settlement, usually between 25 percent and 40 percent, and it is only paid at the end, once you receive a lump-sum amount upon winning the case. That way, you do not have to worry about paying your attorney up front or from week to week, with money that you likely do not have at that time.
If winning your case results in a series of monthly disability payouts from your insurance company, then your attorney will likely charge you a percentage of your disability past-due benefits. These collect over the time that your case goes through the courts, so you could have a substantial amount if you first filed a claim several months ago. However, you should watch out for attorneys that ask for a percentage of your future benefits as well, as this can sometimes extend 10 or even 20 years into the future.
In some cases, your insurance company may actually end up paying for your legal fees, thanks to a law known as the Employee Retirement Income Security Act (ERISA). If you sure your insurance company, a judge might order them to pay if they have shown bad faith or engaged in misconduct. However, this only applies if your long-term disability plan is covered by ERISA.
