Why a Lump Sum settlement?
Some reasons why lump sum settlements may benefit you:
- Your settlement will be tax-free.Yes, your lump sum settlement will be completely tax-free.
- No more late checks.After you have been paid in one lump sum final settlement fee, there will be no more worrying about when (and if) your mailed check will arrive on time with each pay period.
- You can move on with your life.After you’ve received a lump sum settlement, you can make your own choices and have freedom to move on in your life without being bound to your case. Being on workers compensation requires that you cooperate with the insurance company and the employer. You must see THEIR doctor if they choose to make you do so. If you don’t, your claim can be dismissed. If THEIR doctor does not agree with YOUR doctor, your case may be worth less.
- No more threat of surveillance.Workers Comp insurance companies often follow claimants in an attempt to discover activities that are beyond physician restrictions. If caught on videotape in such activities, your case value could be decreased or eliminated altogether. If you settle your case, you’ll no longer be under surveillance by the insurance company.
- Your regular benefits could end.If you are receiving a regular Workers Comp check but your case is not settled, your employer may, at any time, offer to return you to work. This may end your benefits.
- If you should die.Generally speaking, your Workers Comp claim dies with you. If you’ve not received a lump sum payment, your family may receive nothing, either.
- Your employer goes out of business.If so, they may be bankrupt and not have any funds to settle your claim (in the current economic climate, we are seeing this happen more often than ever).
- The Workers Comp insurance company goes out of business.The Louisiana Insurance Guaranty Association may take over your claim. In which case, it becomes more difficult to settle, as yet another party has been added to your claim, and your case falls within State of Louisiana budgeting guidelines.
IMPORTANT: If you are on worker’s compensation, you should NOT generally file for Social Security Disability or Medicare benefits. If you even APPLY for benefits, you have married an unsettled case to the government – who then must grant you permission to settle your claim. Not only does it take a long time to get government permission, also they often require that you pay them money back – or at least hold money out of your settlement (which can ONLY be spent for medical treatment).
Remember, if you are capable of doing any kind of work, you are better off settling your case in one lump sum payment— instead of going back to work with no money in your pocket.
Contact us today or call our office at (318) 861-9000.