What Is A Lump Sum Settlement?
If you are collecting workers’ compensation benefits, there is the possibility that you can end up with a settlement of your case. This is what is referred to as a lump sum settlement because you would be receiving an amount now instead of potentially receiving weekly disability benefits into the future.
Whether you are receiving partial disability workers’ compensation benefits or total disability workers’ compensation benefits, or are presently not receiving any disability benefits at all but have the potential of doing so, you and the insurance company can reach an agreement that pays you a certain amount of money in exchange for your not collecting any more weekly disability checks.
What Is A Reasonable Amount For A Lump Sum Settlement?
As a lump sum settlement is totally voluntary (meaning that neither you nor the insurance company can force the other to enter into a settlement of your workers’ compensation claim); the amount of the settlement is whatever amount you and the insurance company can agree on. However, what is considered a fair and reasonable settlement depends on several factors, such as the amount of your weekly disability benefits, the severity of your injury and how it effects your ability to work, along with the opinions of the doctors on those matters.
What Is The Process For Getting A Workers’ Compensation Settlement?
A lump sum settlement is obtained through negotiations between your attorney and the lawyer or adjuster for the insurance company. If both you and the insurance company can agree on the amount of the settlement (the employer who you were working for when you got injured must also agree on the amount) then the terms of the settlement must be presented to a judge at the Department of Industrial Accidents for approval, with the judge having the responsibility of determining whether the settlement is in your best interest.
Does The Insurance Company Have To Pay For Treatment After A Lump Sum?
In most but not all cases, entering into a lump sum settlement of your workers’ compensation claim does not affect the insurance company’s responsibility to pay for future medical treatment. However, your right to receive any further weekly disability checks after the date that the judge approved the settlement agreement is terminated.
Attorney Ira Yellin has obtained substantial lump sum settlements for many of our workers’ compensation clients. Contact us online or call 508-528-8885 to discuss all of the pros and cons of resolving your claim by way of a lump sum settlement to ensure that it is in fact in your best interest to do so.