If you have been injured in a workplace accident, you may be entitled to receive workers' compensation benefits. These benefits can help you cover your medical expenses and lost wages while you cannot work. If your claim is approved, you will begin receiving benefits.
How Should I Receive My Benefits?
When workers’ compensation cases settle, the claimant receives a lump-sum or a structured settlement payment. The lump-sum payment is a one-time payment of cash proceeds, as a result of the settlement. A structured settlement is the arrangement where the settlement proceeds are paid out in periodic payments made to the injured worker over time.
Benefits of a lump-sum payment:
There are several benefits to using a lump-sum payment instead of alternatives such as periodic payments or annuities.
- Lump-sum payments allow the injured worker to receive all of the money at once instead of being paid the money slowly over time.
- The lump-sum settlement gives the injured worker many options, such as using the money to pay for bills, buy a house, or pay for educational training so that they can return to work in a new career or field.
- Accepting a lump-sum settlement greatly simplifies the settlement process as there is only one payment to be made.
Benefits of a structured settlement:
Structured settlements offer the following advantages, including:
- Payments over time - This can be helpful if you cannot return to work immediately or if your medical bills are ongoing. It can also give you a sense of financial stability in an uncertain time.
- Customization - Structured settlements can be tailored to fit your needs, including choosing to receive larger payments at first, and then smaller amounts later on. This can help you cover immediate costs while still having money coming in down the road.
- Budgeting your settlement proceeds - Structured settlements can allow an individual to budget what they do with their settlement proceeds, but remember, once a structured settlement agreement is reached, it can be difficult to modify or cancel the payments.
Accepting a Hybrid Settlement
Hybrid settlements are an alternative that involve settlements that include a lump-sum and a structured payment. This frequently occurs in cases where the claimant has qualified for social security disability benefits and Medicare has set aside an account that may be needed to cover future medical needs. A structured settlement works well with the Medicare set aside account.
Struggling Through the Workers' Compensation Process?
Workplace injuries can be devastating, both physically and emotionally. In addition to the pain and suffering caused by the injury itself, workers may also face lost wages, medical bills, and other financial challenges.
Workers who cannot return to their jobs may even lose their livelihoods. The good news is that there are laws to protect workers who have been injured on the job. The workplace injury attorneys at Reinhardt | Harper | Davis can help injured workers obtain the compensation they deserve.
If you have been injured in a workplace accident and are starting the workers’ compensation process, call us today at (804) 294-2966 or fill out our form online