If you were seriously or catastrophically injured while on the job, your workers’ comp claim is not going to be simple to handle. The fact is that the more severely you were injured, the greater the likelihood your condition will require lifelong care and treatment.
With that in mind, you probably realize that it will be very difficult to calculate the cost of the future medical care that you will receive. You certainly don’t want to short yourself, and the insurance company will always seek the lowest payout. What can you do?
Explore your structured settlement options
When a workers’ comp injury is permanently disabling, the best solution is often to negotiate a structured settlement that will cover your past, present and future medical and financial needs. Here’s how it works:
- Structured settlements are agreements made between injured workers and insurance companies. They detail the disbursement of financial sums at predetermined intervals (which usually includes an initial large deposit) that satisfy the legal obligation of the company or its insurer to pay the worker’s injury claim.
- Structured settlements are appealing to both sides. For one, it’s tax-free under the provisions of Internal Revenue Code Section 104(a)(1), whereas if you invested your money outright after settling, you will then need to pay taxes on capital gains, earned dividends or even just the income taxes on the interest. For the company, it allows them to pay a large claim over time, which reduces their overall losses.
- Structured settlements can end a lot of stress. There also can be a feeling of relief in knowing that the bills will continue to be paid and money will arrive incrementally. Some people who receive injury settlements may be ill-prepared to manage their funds and be targeted by unscrupulous individuals intent on separating them from their money.
How to know if structured settlements will work for you?
Despite the potential benefits, a workers’ compensation structured settlement isn’t right for everyone.
Discussing the matter with your workers’ compensation attorney can clarify your options and direct your pursuit of financial recovery after a workplace accident.