If you were hurt on the job and have been unable to work for an extended period of time, your employer’s insurance company may suggest a “lump sum settlement” to compensate you for the income you have lost and the medical bills you have incurred. While this may sound like a convenient option, it is not always the smartest. Continue reading to learn why a lump sum settlement may – or may not be – right for you.
Lump Sum Settlement Eligibility
In the state of Pennsylvania, a worker who has been out of work for at least four months and collecting workers’ compensation benefits for injuries sustained on the job, may be eligible to accept a lump sum settlement. This one-time payment is designed to replace medical bills and/or the worker’s weekly income. A lump sum settlement cannot amount to more than the worker’s weekly income multiplied by 500 weeks.
Is a Lump Sum Settlement Right for You?
For some injured workers, a lump sum settlement makes sense. For example, a worker who is frustrated by the ongoing workers’ compensation process and would prefer the ease of a single transaction might accept a settlement. Workers whose illness or injuries are not likely to improve may decide to settle as well.
If you accept a settlement, remember that your employer’s insurance provider will likely offer less than you deserve to receive. To protect your interests, let an experienced Philadelphia workers’ compensation lawyer review your case and negotiate with the insurance company to fight for a larger settlement.
When a Lump Sum Settlement May Not be a Good Idea
When reviewing the pros and cons of a lump sum settlement, it is important to consider your prognosis and need for ongoing medical care. If you are going to need additional treatment, surgery, or hospitalization, a single settlement may not cover these costs. Also, if you are not likely to be returning to work because of your injuries, you may end up receiving more compensation in total with workers’ compensation benefits.
Here is something else to consider. Some injuries aggravate or cause secondary conditions as they progress. If these aggravating health problems require additional medical care, a lump sum settlement might not be enough to cover these expenses.
If you accept a settlement for a work injury or illness, you can never receive additional compensation for your condition. That is why you should never make this important decision without the guidance of a respected Philadelphia workers’ compensation lawyer.
Your workers’ compensation lawyer reviews medical records and accident reports to determine if the settlement your employer’s insurance company offers is fair, reasonable, and enough to ensure you are financially stable while you are unable to work.
Philadelphia Workers’ Compensation Lawyers at Larry Pitt & Associates, P.C Evaluate Lump Sum Settlements for Injured Workers
While a one-time lump sum payment for a work injury sounds convenient and practical, it is not always the smartest financial decision for a worker who has been hurt on the job. Before you accept any payment, consult an experienced Philadelphia workers’ compensation lawyer with the trusted firm Larry Pitt & Associates, P.C. Call 888-PITT-LAW or contact us online to schedule a free consultation today.
With locations in Philadelphia, Bensalem, Lansdowne, and Reading, our team of caring Philadelphia work injury lawyers are here to help clients throughout the state of Pennsylvania, including those in Berks County, Bucks County, Chester County, Delaware County, Montgomery County, Philadelphia County, and throughout Pennsylvania, including those in the communities of Abington, Ambler, Ardmore, Bala Cynwyd, Bensalem, Clifton Heights, Crum Lynne, Darby, Downingtown, Doylestown, Drexel Hill, Essington, Folcroft, Glenolden, Haverford, Havertown, Holmes, Kutztown, Lansdowne, Media, Merion Station, Morton, Narberth, Norristown, Norwood, Philadelphia, Prospect Park, Quakertown, Reading, Roxborough, Sharon Hill, Upper Darby, West Chester, and Wynnewood.