You can receive periodic payments or a lump sum workers' compensation package after suffering a workplace injury. Each option has its requirements, procedures, pros, and cons. Below are a few things you should do to enjoy your lump sum settlement without regret.
Consider the Pros and Cons
Understand the pros and cons of a lump sum settlement before accepting it. For example, you may appreciate the sump sum if:
- You want to receive all your benefits at once so you can plan your financial future
- You have a specific financial need that requires a lot of money
- You are relatively old and don't plan on returning to work
- You don't want to risk future reduction of benefits
However, you should also know that you give up your rights to more benefits in the future once you accept the settlement. You might suffer financial losses if you use the lump sum money and cannot receive additional benefits.
Include All Relevant Compensation
Include all the benefits you deserve in your negotiation with the workers' compensation department. Better include something and get it denied than not include it at all. For example, you should include:
- Future medical costs, such as planned surgeries, prosthetic replacements, or pain management treatments if you have a long-term injury
- Future wage replacements if your injuries mean you cannot work in the same capacity or earn the same wages you did before the injury
Review your state's workers' compensation laws to understand and claim the benefits you deserve.
Consult a Lawyer
Consult a lawyer before accepting your lump sum payment. You should hire a lawyer to negotiate your lump sum. For one, lawyers are skilled negotiations, and your lawyer may get you a better deal than you would get on your own.
Secondly, you should consider your future needs and the future value of your compensation. For example, just because a surgical operation requires $10,000 now does not mean it will still cost the same in five years. An experienced workers' compensation lawyer will help you negotiate a package covering all your future needs.
Lastly, your lawyer will also help you understand your compensation package and its implications. Remember, the court's understanding is necessary for it to approve your lump sum package. Unlike the periodic payments, you must convince the judge that you understand your lump sum settlement before you receive it.
Contact a local law firm, such as Law Offices Of Edward Seplavy, to learn more.