You were hurt at work. You have fought hard and won the workers’ compensation you are rightfully entitled to receive. So what happens next? Should you accept your workers’ compensation settlement in a lump sum or in installments?
Lump sum settlement is great for injured workers in some situations, but not all. This is especially true if you are likely to have medical complications in the future. Here are a few things you need to keep in mind before accepting your settlement in a lump sum:
You cannot pursue any more claims
Once you sign that dotted line, you will be giving up any right to pursue your employer’s insurance for additional compensation. This means that any additional costs you will incur will likely not be covered by the workers’ comp policy.
As such, it is extremely important that you properly assess the extent of your injury and future treatment needs before deciding whether you should accept a lump sum settlement or not. This is particularly true if your condition has the potential to worsen in the future.
There will be no more monthly payouts
Most often, you will receive monthly payments from your employer’s workers’ comp provider following your injury. However, this will come to an end as soon as the lump sum payout is made.
If you aren’t careful, you can run through the lump-sum settlement faster than you anticipate, and that can lead to financial problems for you in the future.
Depending on the severity, a workplace injury can turn your life upside down. Find out how you can protect your rights and interests while pursuing compensation following your injury.