If you suffered an injury at work, it can put you out of work for a significant amount of time. You will likely be entitled to workers' compensation coverage that will pay for your medical needs for your injury. It may also provide you with disability pay while you are unable to work. Many employers will want to settle your workers' compensation claim so they only pay you one lump sum instead of subsequent payments. Before you go with the lump sum option, there are some things you need to consider:
If you receive disability payments from your workers' compensation claim, they will be disbursed weekly in most cases. After you settle your claim, you will not get a weekly payment. Rather, you would get one check for your damages. If you go with this option, you have to be very careful with how you budget in order for it to meet your financial needs. Having a large chunk of money on hand can be too tempting for some people, leaving them with no money for regular bills.
Medical Bills and Payments
After a workers' compensation lump sum settlement, you may lose medical payments for your injury. Some states provide that the medical claim compensation stops after regular payments end. If you have no other medical insurance, you will have to pay for your own medical care. Medical insurance may not want to pay for your claims for injuries suffered on the job at all. The insurer will state that your claim should be paid for by the employer, causing you further issues.
What You Need To Remember Before Taking A Lump Sum Settlement
Before you make a decision on a lump sum payment as a means to settle your workers' compensation claim, there are many things to keep in mind. First, ask your employer if you are going to be compensated wholly for the amount of time you lost at work. You need to include time for holidays, sick time, travel time, and expenses. Also, you should review all of your bills to make sure you have been paid for every medical treatment. You should include your mileage for these visits as well. If you traveled a great distance for treatment, you will inure some expenses that need to be compensated. Finally, make sure the workers' compensation has paid for every expenses related to the injury. This will include non-prescribed medication that you needed and meals you had while traveling to doctor's visits.
For assistance, talk to an attorney.