Do Lump-Sum Payments Help or Hurt in Workers’ Compensation Cases?
Should I get a one lump-sum payment?
Is it better to get payments every month?
Will it hurt my case if I get a lump-sum payment?
Lump-sum payments aren’t the right choice for everyone, but in many cases, they can provide injured workers with financial help they need to get back on their feet. Some insurers fail to agree to lump-sum payments because the worry large-sum payments might make an injured worker less likely to return to work right away.
A Workers Compensation Research Institute study “reviewed the cases of 2,138 workers who were injured in 2004 and later received lump-sum payments. Most workers – nearly 80 percent – did not have a change in status; if they were working at the time of receiving a lump-sum payment, they stayed employed (and vice versa). However, for those that did change employment status, more returned to work than left. The only exception was for older workers, who were more likely to leave the workforce after a settlement.
The researchers concluded that a lump-sum payment could actually encourage an injured worker to return to work. They hypothesized that lump-sum payments might help workers close stressful chapters in their lives and move on to something new.”
If you have questions about lump-sum payments or feeling overwhelmed by how complicated it can be to handle a case on your own, you should contact one of our experienced workers’ compensation attorneys in Colorado.
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