Are There Any Benefits To Workers’ Comp Lump-Sum Payments?

When you file a workers’ compensation claim, the defendant may offer you a lump-sum settlement to pay back for damages instead of ongoing payments. If you’re recovering or have a minor injury, it can be a great way to get compensated quickly. However, if your work injuries require long-term medical support, a structured payment may be a better choice for you.

How Are Workers’ Comp Payments Determined?

Your workers’ compensation board will analyze your case evidence and the details of the incident. As part of its decision-making process, the board considers:

• The severity of your injuries
• Your wages or salary before the incident
• If you’ll still need medical care after the hearing
• How much time you’ve taken off work
• Disputes you have with your employer

Once the board finalizes everything, they will determine the amount you’ll receive and whether it will be a one-time settlement or smaller payouts over time.

When Should You Take A Lump Sum Payment

Your employer may offer you a one-time payment to cover your expenses. Also known as a Section 32 Waiver Agreement, you and your employer will agree on a lump-sum settlement and submit this form to the Workers’ Compensation Board. If you decide to do this, you promise to permanently close your case, return to work, and not pursue any further charges. Here’s when you should consider a lump-sum payment:

You Don’t Need Any Future Medical Treatment

Before you sign a waiver, you should consult with your primary physician. They can check your medical condition and see if you’ll need any future treatments. This way, you’ll know about any ongoing medical issues connected with your injury. If the doctor determines you’re in good shape, you can take the one-time settlement without worrying about any surprise medical bills in the future.  

You’re Behind On Your Bills

Being injured at work can lead to bills piling up if you don’t have any savings or you live in a one-income household. After you’ve checked your medical condition, take note of any debts you haven’t paid since the incident. Since workers’ comp payments cover lost wages, bills, or medical expenses, a lump-sum amount can be what you need to get caught up with your finances. 

You Don’t Want Medical Defense Exams

Structured settlements may put you under constant scrutiny. If a defense medical exam proves you’re physically fit to go back to work, the board can take away your benefits at any time. With lump sum payments, however, they instantly become yours to spend without any interference. You may be forced to close the case, but you’ll have more freedom with how you can spend your funds.

When Should You Take Structured Payments?

You should always consult your attorney and doctor before you make a decision. If you’re still in the early stages of recovery or your doctor hasn’t given you medical clearance, a structured payment lets you receive payments as long as you’re still recovering from your work injury.  Structured settlements are also helpful if you have a permanent injury and plan to receive social security disability payment because it won’t impact the final amount you’ll receive.

Our Attorneys Are Here to Help

Understandably, you want to receive compensation for your injuries as early as possible. A lump sum payment may be an easier option if you’re fully recovered and don’t foresee any additional expenses in the future. But in any case, always consider the details of your case before you accept a workers’ comp settlement and close your claim.

If you’ve been a victim of a workplace injury, our team of workers’ compensation lawyers will navigate you through the claims process and ensure you’ll receive the benefits you deserve. If you have any questions about your case or want to schedule your free consultation, call us at 855-622-7686 or fill out the contact form on our website. We serve Long Island, Brooklyn, Queens, and more.