When you’ve been injured on the job, your finances can take a hit. The harm caused to you might knock you out of work, thereby leaving you without the ability to earn income, while your medical bills and rehabilitation costs can quickly pile up. In these situations, it’s wise to seek out workers’ compensation benefits that can help provide financial stability while you navigate your recovery. But while the system typically makes periodic payments to recipients, some insurance companies try to pay out less by offering a lump sum.
Should you take a lump sum workers’ compensation payment?
There can be several benefits to accepting a lump sum payment. They include:
- Giving you strong financial footing immediately.
- Avoiding having to undergo additional medical examinations requested by the insurance company.
- Not having to worry about insurance investigators surveilling you to find ways to deny your workers’ compensation claim.
- Forgoing court battles over the payments you deserve.
- Giving you peace of mind as you move forward with your recovery.
That said, there are also disadvantages to accepting a lump sum payment. These include:
- The lump sum payment might fall short of the resources needed to offset your losses.
- A miscalculation in your anticipated medical expenses could leave you responsible for those bills if the lump sum falls short.
- There may be unforeseen medical complications of your condition that you won’t be able to address through the workers’ compensation system if you accept a lump sum payment.
Find the legal avenue that’s right for you in your workers’ compensation case
Deciding whether to take a lump sum workers’ compensation payment can be tough. That’s why you might want to discuss the matter with your attorney. That way, you’ll have a clearer sense of what you’d likely recover if you sought regular periodic payments in comparison to a lump sum payment, which can guide your decision-making. Hopefully then you can make the fully informed decision that supports your interests, your recovery and your future.