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Posted 10/18/2017

Pros and Cons of Workers Comp Lump Sum Settlements

Pros and Cons of Workers Comp Lump Sum Settlements

Did you know that you can receive a lump sum settlement for your workers compensation claim? In some cases, this is a possibility to seriously consider. Instead of getting paid every week and having your medical bills paid for regularly, you could get an upfront settlement amount to cover your future lost wages and medical bills.

It's important to carefully consider all the options available to you and make the right choice. This decision is going to directly impact your family's financial future.

Pros of Taking a Lump Sum Settlement

The benefit to settling now is that you get a lump sum of cash. This could be money you need to pay off back debts, pay off your mortgage or car, go to college to be retrained, and more. The money is yours, so you can do whatever you want with it.

Another reason people settle upfront is because they don't want the insurance company or employer to harass them down the line. They don't feel like submitting to regular health exams and worrying about private eyes being sent to watch them.

By taking a lump sum, losing your work comp benefits while you still need them is no longer a concern because once you’ve been paid, the insurance company no longer has an interest in the claim.

Cons of Taking a Lump Sum Settlement

If you settle your case and the medical bills end up being higher than anticipated, you’ll pay for those costs out of pocket. If you have good health insurance through another source, this may not be a problem.

However, if you don't have health insurance or the premiums are too high to keep up with, you could end up with significant medical bills. Another negative is that you could ultimately get less than you deserve.

Be Careful

Let's face it: Insurance companies don’t do things magnanimously or out of the goodness of their heart. They typically offer a settlement because it eliminates the risk of the unknown.

If there are physical complications that arise out of your initial injury, they are on the hook for them. If the complications arise after you settle the case, you can’t ask for more money, so this is something that needs to be carefully considered.

Risk vs. Reward

Ultimately, it comes down to risk versus reward. There is a risk to accepting lump settlements because there is no guarantee that you know about all the medical complications that will arise from your injuries.

The reward, however, is that you have a lump sum of cash that you can use to financially benefit your family.

An NYC Work Comp Attorney Can Protect You

Our job is to protect our clients’ rights and best interests. Whether you have just filed a workers compensation claim or have received a settlement offer, call and speak with an attorney at Finkelstein, Meirowitz & Eidlisz, LLP.

We will go over your case, make legal recommendations and ensuring you get the compensation you deserve. You can reach us and schedule a free consultation through our website or by calling us directly at 212-385-9190.

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