Consider different payment arrangements for workers’ compensation

On Behalf of | Nov 2, 2020 | Workers' Compensation

If you get hurt on the job, you may want to seek out workers’ compensation. One thing that many people don’t realize about workers’ compensation is that you may be able to seek a lump-sum payout instead of accepting weekly benefits.

Lump-sum benefits work well for those who need to receive a large amount of money all at once. For example, someone who was hurt and who needs to make major changes to their home to make it handicap accessible may prefer a lump-sum benefit. Others, like those who are not the primary breadwinner or who would prefer not to receive the money all at once, may choose to have a regular deposit of the workers’ compensation benefits each week or biweekly.

You may want to have a structured settlement instead, which offers several specific payments over time. That’s possible, as is taking a lump-sum payment that pays out all at once.

There are pros and cons to taking a lump-sum payment. The pros include being able to get more money up front to cover your bills and financial needs. The cons include not having that money sent to you over the long-term, so it could be easier to use it up quickly.

If you’re hurt and need to pay your bills, remember that you can consider taking a lump-sum benefit. Your attorney can help you decide if it’s the right choice for you based on your circumstances. If you decide that a lump sum or structured settlement would be best, then you may want to have your attorney reach out to your employer and workers’ compensation insurance company for help with that.