Private sector and federal employees file an estimated 4.9 million workers’ compensation claims annually in the U.S. for work-related injuries or illnesses. If you’ve become one of the individuals who must file a workers’ compensation claim after a minor or major injury, you’re likely considering monthly payments or a lump sum payout.
To help you decide if a lump sum payout is the right choice for you, in this article, the team at Dyer, Garofalo, Mann, & Schultz have detailed what this payout is and its pros and cons. Should you need further assistance, our worker’s comp lawyer has the knowledge and skills necessary to help you file a claim for a lump sum payout or monthly payments.
If you have recently become involved in a workers’ compensation claim, you might have been offered a Compromise and Release, otherwise known as a lump sum payout, by your insurance company.
But what is this? It’s exactly what it sounds like. A lump sum payout is when you receive a large amount of money at once for injuries and damages you might have sustained while working. Unlike weekly or monthly payouts approved by a medical doctor, a lump sum amount is once-off, and you cannot claim for your injuries or other damages again after receiving the settlement.
Unfortunately, insurance companies are often not in the mindset to do what’s best for the client. This means that if they offer a lump sum payout, it will often be less than you would receive in the long term with weekly or monthly payouts or significantly less than what you should receive at once.
That’s why it’s crucial to make sure you speak with an Ohio attorney who can help you determine if the lump sum the insurer is offering is fair and what you deserve for the injuries and damages you incurred.
If you’re having trouble determining if accepting a lump sum from workers comp is a good idea, you might find the information below helpful. We’ve listed when it might be a good idea to accept a lump sum from an insurer:
Ultimately, if your doctor says you won’t need further medical treatment and are unlikely to incur future medical bills, you should consider the lump sum payout. However, speaking with an attorney about this matter is still recommended.
Considering a lump sum settlement for your work-related injury is a serious matter. Unfortunately, there are more disadvantages to accepting a lump sum settlement than advantages. We’ve listed the disadvantages below to help you determine what’s your best next legal move:
What should you do if you’ve been offered a lump sum settlement? First and foremost, you don’t have to accept it, no matter what the insurance company says to you. Often, people believe they have no choice, but this is not the case.
If you don’t want to accept the lump sum payout, you can negotiate with your insurer and ask them to adjust the amount to a sum that you believe is more appropriate and in line with your injuries and damages.
Should they not want to accept this negotiation or the settlement amount you stipulate, you can let your attorney communicate with them to resolve the issue or take legal steps. Alternatively, you can leave the negotiating entirely to your workers’ compensation attorney, which might ensure a better outcome from the get-go.
In addition, it’s an excellent idea to speak with a doctor before accepting a lump sum settlement. This is because a doctor – as mentioned previously – can tell you if you will recover and how likely you are to have future medical expenses. Based on what they say, you can also decide if accepting the settlement is smart or financially detrimental.
You must evaluate your options when it comes to workers’ compensation payouts. Although a lump sum settlement can be attractive, it might not always be the best option, especially if you’re still recovering after a workplace accident.
If you speak with an experienced Ohio workers’ comp lawyer from Dyer, Garfolo, Mann, and Schultz, you can determine which approach is best for you while considering factors like pension, future medical expenses, and SSD benefits.
Since time is of the essence with these types of claims, contacting us at your earliest convenience is important. We’re only a call away from helping you file a claim or negotiate a suitable settlement should you decide a lump sum is in your best interests.
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