What Are the Pros, Cons of Lump Sum Workers’ Compensation?

When attempting a workers’ compensation settlement agreement with your employer’s insurance carrier, you may be shocked by how high their initial offer seems to be. However, while it may seem like a lot of money right now, you must remind yourself that this must be stretched out over the course of years, decades, or even the rest of your lifetime. With that being put into consideration, please continue reading to learn more about the benefits and drawbacks of accepting a lump sum offer and how one of the experienced Illinois workers’ compensation benefits lawyers at The Law Firm of Kevin A. Moore can help you make the right decision here.

What are the advantages and disadvantages of accepting a lump sum workers’ compensation offer?

Of course, arguably the most appealing part of a lump sum offer of workers’ compensation is the almost instantaneous financial relief you may experience. That is, at this point, you may have already piled on hefty medical bills and spent a lot of days out of work. But once this settlement is finalized in the next weeks or months, you may square these economic losses away swiftly.

Secondly, settling your workers’ compensation case is simpler than taking it to a hearing. This means that you will save yourself from having to undergo several medical evaluations, incurring more and more legal fees, and overall dealing with the stress of constant battling with an insurance carrier.

While you may appreciate the sense of control and simplicity that comes with a lump sum settlement, you must weigh this instant gratification against your long-term happiness. In other words, once you agree to an offer, it is full and final, meaning you cannot reopen your case for additional benefits. This may be considered rather risky, especially if you do not have a clear timeline of when you may fully recover from your incurred injury or illness.

How do I know when to deny a lump sum settlement and take my workers’ compensation case to a hearing?

It is rather unlikely that we will advise you to accept an insurance carrier’s initial lump sum offer for your workers’ compensation. But this is especially true if, based on our calculations of your disability rating, current and future lost wages, and current and future medical expenses, we find that you are being unfairly low-balled.

From here, we may provide a counteroffer and negotiate on your behalf. However, if we believe that there is enough evidence to establish your compensation needs before a judge, we may direct you to take your case to a hearing. With this, an insurance carrier may think they do not have enough for their stance, and respond with a fair and reasonable settlement amount.

If you are still torn about what to do, and instead of jumping to one choice over another, please discuss it with one of the skilled Illinois workers’ compensation benefits lawyers. At The Law Firm of Kevin A. Moore, you can rest assured that you will be guided in the right direction. So please retain our services today.