Does this sound like you?
You’ve been offered a workman’s comp lump sum settlement for an injury you received at work. This injury has caused you to be out of work, and now you are worried about how you can keep up with living expenses.
The amount offered sounds good, and it would help you out with bills that are piling up.
However, you need to know a few things before you decide to accept workers’ compensation lump sum payments for your injury.
Read on to learn what you need to know about workers’ compensation lump sum payments and how they can affect the benefits you receive.
What is a Workers’ Compensation Lump Sum Payment?
Also known as a Compromise & Release, the workers’ compensation insurance provider may offer a settlement for a one-time payment instead of making regular ongoing payments.
This type of payment is usually offered for more serious injuries, but it can be offered at any point for any work injury. Pennsylvania code Title 034 provides details for how workers’ compensation is to be handled, which includes provisions for Compromise & Release agreements.
You should know that you’re not required to accept a lump sum payment, and you can negotiate with the insurance provider to adjust the amount. However, if you decide to negotiate, you should contact an experienced attorney to handle that process.
Whether you are offered a workers compensation lump sum settlement and the amount is often dependent on several factors:
- How serious is the injury?
- How long will you be off work?
- Will you be able to return to your same position?
- What other benefits are you receiving?
- How much are the medical expenses, and will they continue to build up?
Once you have the answers to these questions, you can begin to consider how a lump sum payment will impact your life and finances. If you don’t have all the answers, you may need to contact your medical provider and ask them about your prognosis before agreeing to any settlement with the insurance provider.
What Should You Consider with a Lump Sum Payment from Workers’ Compensation?
If your injury is long-term or permanent, you may qualify for social security disability.
However, a lump sum payment from the workers’ compensation insurance provider could reduce the amount you receive from disability. You need to factor this in before you decide on whether to accept it, especially if you will be receiving workers’ compensation benefits and SSD benefits at the same time.
Additionally, the settlement may affect any pension contributions. These are serious considerations for your future financial stability and shouldn’t be taken lightly when deciding on how to receive your money from workers’ compensation.
Another major factor in your decision is where you are in your recovery process. Once you accept the settlement, you won’t be able to reopen the claim later for more money. If the condition worsens and requires more medical care, you’ll be responsible for the costs.
While a lump sum settlement is allowed in Pennsylvania, it might not be in your best interest. It may actually be better to wait longer in your recovery timeline before you decide to accept a settlement.
It’s important to understand that the insurer is making the offer to reduce the amount they will need to pay you. Therefore, you will need to make sure the offer is fair when considering your current and projected medical costs.
It may be beneficial to talk to your doctor if you haven’t received a long-term prognosis for your injury. Find out if you will be able to go back to work and if there will be any permanent effects or a disability that results from the injury. Consider the fact that the injury could also worsen over time or even lead to another medical condition.
Should You Take a Workers’ Compensation Lump Sum Settlement?
This will be a decision that merits serious consideration. It will be beneficial to speak to an experienced workers’ compensation law firm before you decide.
An attorney can advise you based on your situation. They can request a medical evaluation to determine the extent of your injury if you have stopped making progress. The attorney can also estimate future costs if more surgeries or other treatments are necessary or recommended.
Once they have this information, an attorney can provide an idea about how much you can expect to receive if you choose a lump sum settlement over weekly payments.
Some signs you may benefit from a lump sum payment include the following:
- You aren’t making progress from your injury, or you have reached the extent of recovery
- The settlement will provide financial security as you work to get better
- You’re tired of the hassle of working with the insurance provider
If you determine that a lump sum settlement is what you want or you would simply like some more guidance, contact Krasno, Krasno & Onwudinjo to discuss your case. You won’t have to worry about fees initially, because we don’t get paid unless you get paid.
With an attorney on your side, you have more power in negotiations to get a settlement offer that will benefit you.
An attorney will explain everything, each step of the way, so you can understand what you are agreeing to. They will also be able to offer sound legal advice on what will be in your best interest as a recipient of workers’ compensation benefits.
Contact Us To Discuss Lump Sum Payments for Workers’ Compensation
Krasno, Krasno & Onwudinjo has been representing injured workers in workers’ compensation cases since 1936. Our experience will help you get the compensation you deserve.
Contact us today for a free consultation at 877-794-2396.