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Lump sum settlement vs. ongoing workers’ compensation payments

On Behalf of | Jun 11, 2024 | Workers' Compensation |

Did you know that you may be in a position to choose between a lump sum payment and ongoing workers’ compensation payments in the aftermath of a work injury? Depending on the kind of injury you sustained, you may be inclined to choose one option over the other.

What you settle for should be ideal for your unique situation. Otherwise, it might not be the safety net you need in order to effectively manage your physical limitations and financial burdens.

The allure of a lump sum

Few things are more gratifying than a lump sum settlement of any kind. You might be tempted to opt for the upfront large sum of money for several reasons. Perhaps you want to use the debts that you have been grappling with for the past couple of months. This can give you some peace of mind and offer the fresh financial start you’ve been desperate for.

You may also have been eyeing an investment that you hope can grow your wealth and potentially secure your future financial stability. This can especially be an attractive option if your injury has limited your earning potential.

Ultimately, a lump sum settlement can give you peace of mind, knowing you don’t have to wonder if the ongoing payments will be consistent. It can save you from potential disputes with the insurance company.

The security of ongoing payments

If you don’t trust yourself to manage the lump sum settlement properly, you might want to opt for ongoing workers’ compensation payments. They can be like a guaranteed stream of income to facilitate your recovery.

This option can be ideal if your injuries require ongoing therapy and treatment. With consistent payment, you don’t have to worry about missing therapy sessions and compromising your recovery. Suppose you’re also receiving wage replacement benefits; ongoing payments can help ensure you have a predictable source of income during your recovery.

Choosing between a lump sum settlement and ongoing payments for your workers’ compensation claim is a significant decision that requires careful consideration of your personal and financial circumstances. By evaluating your situation and seeking appropriate legal guidance, you can make a decision that best supports your long-term well-being and financial stability.