When you discuss the outcome of your claim with a Daytona Beach workers comp attorney, one of the issues you have to decide on is whether you want a lump sum or a structured settlement. Both options have pros and cons, so let us discuss them in detail.
For help with your workers comp claim, contact our lawyers today.
What Is a Lump Sum Settlement?
Your lawyer may negotiate with the workers comp insurance adjuster a total amount that would cover your replacement wages and your medical care costs. This is the lump sum – a one-time large payment that you will receive to settle your workers comp claim.
Once you have accepted this agreement and signed the document, your claim is resolved. You may not seek any other payments related to the respective workplace accident at any moment in the future.
The Pros of Accepting a Lump Sum Payment
If you are good with money and know how to invest it, a lump sum settlement offers you the necessary capital to start making money for your family. You may even consider starting a side gig or a business.
Also, you do not have to go to the assigned workers comp doctor. You may see your own doctor. Or you may pursue any kind of medical treatment recommended to you, including experimental ones. You do not have to seek the insurance company’s approval for these treatments.
The Cons of Taking a Lump Sum
As explained above, you will get a one-time payment if you accept a lump sum settlement. If you run out of money or if your medical condition gets worse, you cannot go back and seek more money.
Thus, you should think very carefully before you choose this option. Once your claim settles, even the most experienced Daytona Beach workers comp lawyer cannot help you any further.
What Is a Structured Settlement?
A structured settlement is a different form of workers’ compensation settlement. It involves getting periodic payments over a period of time. For example, if your attorney negotiates a $100,000 settlement for your workers’ comp claim, you may decide to collect it over the next 5 years.
The annual amount, called an annuity, will be $20,000 which you can collect in monthly payments or the full sum on a set date each year.
The Pros of Choosing a Structured Settlement
With a structured settlement, you will get periodic payouts to cover your regular expenses and medical care costs. This means that you cannot overspend, and your finances remain stable until you are able to return to work.
Moreover, you may defer the annuity payments. Let’s say that your doctor estimates that you may require future surgery five years after your workplace accident. Thus, you can defer receiving your structured settlement and start getting it when you need the respective surgery.
The Cons of a Structured Settlement
Just like with the case of opting for the lump sum, once you accept the offer, you cannot go back to seek more money or change the payment terms. Thus, if you choose to defer the payment, you cannot contact the insurance company and ask for it sooner – you are bound to the schedule you agreed with them.
A Daytona Beach Workers Comp Lawyer Can Help You Make the Right Choice!
Deciding how to receive your workers’ comp settlement is daunting when you are still getting treatment for the painful injuries caused by the workplace accident. You may not be aware of all the implications of the decision you are about to make – which is final.
This is why you need to rely on an experienced Daytona Beach workers comp lawyer at our firm. We will fight to win the maximum settlement for your claim. We will also advise you on the best choice for getting payment, depending on the potential outcome of your treatments and your financial situation.
We offer each new client a free case review, so call us today at 954-448-7355 to schedule your initial appointment!
