Approximately 135 million employees received workers’ compensation benefits in 2015. If you have a work-related injury or disability, it is essential to have benefits that last as long as needed. For some workers with permanent injuries, lifetime benefits are best, but others may prefer a lump sum settlement. Learn which situation is best for you below, then speak to our Rockford workers’ comp lawyers at Fisk & Monteleone for legal assistance.
What Is A Lump Sum Settlement?
The Illinois Workers’ Compensation Act allows you to take a lump sum payment for your benefits. A lump sum settlement for workers’ compensation is one payment that is supposed to cover your medical bills for life. It is paid one time, and you manage the money. Most workers take lifetime benefits, but you should speak to your attorney about lump sum options, too.
What Is A Lifetime Benefit?
Lifetime benefits for workers’ compensation are paid gradually for the rest of your life. The workers’ comp insurance company pays all medical bills related to your work-related injury.
Why Take A Lump Sum Settlement?
There are several reasons some injured workers choose a lump sum settlement for their workers’ compensation case:
- Money in hand now: You do not need to wait for the money to be paid weekly or monthly with a lump sum payment. This can be helpful and reassuring if you have urgent medical needs today.
- Safety for your family: Workers’ comp ends when you are cleared to return to work or pass away. When you take a lump sum, the money is yours, whatever happens.
- Closes the claim: Dealing with workers’ comp can be frustrating as the months and years pass. But a lump sum settlement closes your claim and allows you to move on.
- No medical examination stress: If you take a lump sum, there are no worries about insurance companies watching to see if you are injured, and there are no more company-ordered medical exams that could put your benefit payments at risk.
Downsides Of A Lump Sum Settlement
If you take a settlement, the case is closed. If you need more money later, there is little to no recourse. But the future is unknowable, and you could have medical complications. Also, getting a large amount of money simultaneously requires considerable financial responsibility and money management.
What Should You Choose?
It is up to you and your Rockford workers’ comp lawyers to decide if you want a lump sum settlement or lifetime payments. First, if the insurance company offers a lump sum, your attorney can analyze if it is enough to cover your needs. Also, your attorney works with medical and financial experts who can help determine if your medical costs will be covered according to your condition and life expectancy.
Lump sum and lifetime benefits both have their advantages and disadvantages. Which is ideal for you usually depends on your finances, injury, level of disability, and even your personality. For example, are you tempted to blow a lump sum payment on unrelated expenses? Then, lifetime benefits could be the best choice. But if you are financially prudent and confident the lump sum payment will meet your needs, that could be the way to go.
Contact Our Rockford Workers’ Comp Lawyers Today
Are you weighing the pros and cons of taking a workers’ comp lump sum settlement? Contact our Rockford workers’ comp lawyers at Fisk & Monteleone today at *815) 962-0044 to review the legal options.