When you have experienced an injury on the job and are receiving workers’ compensation benefits, you may have the option to settle your claim with a lump sum payment. You might wonder if a lump sum payment is your best option.
There are 4 reasons why you might wish to consider it.
1. Flexibility
One of the main advantages of a lump sum settlement is that it provides you with financial freedom and flexibility. Instead of receiving weekly or monthly payments, you will have access to a larger sum of money upfront. This can allow you to pay off debt, invest in your future or make necessary purchases related to your injury or recovery.
2. Closure
Accepting a lump sum settlement can provide a sense of closure and allow you to move forward with your life. By settling your claim, you can put the workers’ comp process behind you and focus on your recovery and future goals without the ongoing stress of dealing with the claim.
3. Assurance
In some cases, ongoing workers’ comp benefits may be subject to change or termination. By accepting a lump sum settlement, you can protect yourself from potential benefit cuts in the future. This can provide peace of mind and financial security, especially if your injury has long-term effects on your ability to work.
4. Customization
You can often customize lump sum settlements for your specific needs and goals. You may be able to negotiate a settlement that includes provisions for future medical expenses, vocational rehabilitation or other benefits. This can ensure that you have the resources you need to support your recovery and move forward with your life.
Although lump sum settlement is not right for everyone, it is a worthy option for many who receive workers’ compensation benefits. Understanding the advantages can help you determine if a settlement fits your needs.