Whether you should accept a lump sum settlement for your workers’ compensation injury claim depends on several factors. Namely, it depends on:
It is very important that you fully understand the pros and cons of lump sums before you make a decision. Only by talking with a workers’ compensation attorney can you truly know whether it is best for you considering the specifics of your case.
Below is just a brief overview of some of the factors to consider. For case-specific information, speak to an Illinois workers’ compensation attorney at Franks Gerkin Ponitz Greeley.
First, you should understand exactly what settling a case and accepting a lump sum means. Once you accept a lump sum, you will not receive monthly income benefits. If you already are receiving these monthly payments, they will stop. The Illinois Workers’ Compensation Commission will close your case and you will not be able to ask for more money later if your condition worsens.
In addition, when you settle,you will need to pay your attorney’s fees will be taken out of the settlement. Once you settle, usually your injury related medical care stops.
Insurers actually favor lump sums over monthly payments. This is because with a lump sum, they know exactly how much they are liable for and they can close their case much sooner. Keeping the case open and making monthly payments for an undetermined amount of time will hurt their overall bottom line, which means they will, of course, want to settle as soon as possible.
Benefits – First, settling your case gives you control of your money much sooner. This can be comforting and helpful if you are in dire need of funds. Never, ever settle while you are still treating.
Pitfalls – The primary downside of accepting a lump sum is that if your condition worsens you are out of luck.
Whether you should settle and accept a lump sum depends on two important factors:
Each case is different. Your best bet will be to get a professional legal opinion about how to ensure you are maximizing the final amount in your pocket. For legal help in Illinois, call Franks Gerkin Ponitz Greeley and speak to a workers’ compensation attorney at 815-923-2107.