Posted on: 21 December 2022
Workers' compensation disputes may take a long time, and accepting a settlement shortens the process and ends your case in good time. Additionally, accepting a settlement eliminates the risk and uncertainty that is inherent with a court trial, where you may even end up with nothing. Having a worker's compensation attorney in your corner will ensure you enjoy all these advantages of settling your case.
Types of Payments
In addition to negotiating the best possible deal, a worker's compensation attorney can counsel you on whether to accept the negotiated amount as a lump sum or as structured payments. Here is a look at what you can expect.
1. Lump Sum Settlement Payment
Accepting a lump sum payment puts the money in your pocket immediately. This option works great if you have medical bills, living expenses, and more that require immediate attention and are quite significant.
2. Structured Payment
Under this plan, you will receive the agreed settlement sum as an annuity over a specific period. Keep in mind that you may not change the terms of the original agreement. This means that if you agree to get an annuity for the next 20 years, you cannot change things up and ask to reduce this period, even in the face of changes in your financial and medical situation. As such, consult with your worker's comp attorney before agreeing to a specific period.
If your medical condition and overall health are presently stable but may worsen over time, you can always defer payments under this plan. Whether you want to start getting the payments two years after agreeing to the settlement or ten years later, you don't have to worry about not getting the full payout.
Annuity payments as part of your structured settlement payments are tax-free. Additionally, the payments can earn interest over time. With this in mind, you may get more money under this plan than you would if you opted for the one-off lump sum payment.
Work with a Professional
Don't be in a rush to accept a settlement offer, however good a deal it may seem. Before jumping the gun and trying to figure out whether to go for a lump sum or structured payment plan, carefully review it with your attorney. A worker's compensation attorney will help you understand whether or not what is on offer is adequate to meet not just your present needs, but also whatever needs you may have in the future.
Want your workers' compensation case to run faster and more smoothly? A worker's compensation attorney can help you secure a fair settlement without unnecessary delays. To learn more, contact a worker's compensation firm ni your area such as The Dennis Law Firm.Share