Lump Sum Settlements

Knowledgeable and Experienced Workers’ Compensation Lawyers Committed to Recovering Benefits for Those Injured in Workplace Accidents

If you or a family member has been injured and are being offered a cash settlement, it may not make sense to accept it. Depending on your individual situation, signing away future benefits and rights in exchange for a lump sum settlement could be disastrous. Even though the amount may at first seem large, initial settlement offers are usually far less than you will require for your injury.

Once you enter into a settlement or sign a release provided to you by your employer or an insurance company, it may be difficult or even impossible to reverse your decision. Thus, it is imperative that you consult a Miami workers’ compensation attorney baefore surrendering your rights under the law. The Miami workers' compensation attorneys at Friedman Rodman Frank & Estrada can help you make an informed decision that’s right for you and your family.

If you’ve been injured, you may be offered a lump sum settlement in exchange for your lost wages, your medical expenses, or both. However, you will waive your rights to additional claims for past due benefits and future benefits that could arise as a result of your injury, and a lump sum may not adequately account for future medical needs and wage losses. Even if your future medical expenses exceed the amount of your settlement, you won’t be able to collect more money to cover those costs once the case is settled so it’s important to get an attorney involved as soon as possible.

Another alternative to settling your case for a lump sum is a structured settlement, where you receive some compensation now and the rest over time. Typically, a structured settlement is more expensive for an insurance company in the long run, so they are eager to have you accept a lump sum. However, there are advantages and disadvantages to taking a lump sum settlement, and it’s important that you understand both and we can help you choose the settlement plan that’s right for you based on your needs today and into the future.

Settling your claim with a lump sum settlement generates an immediate payment rather than spreading the benefits over a term of years.

Additionally, by settling your claim you will not face restrictions on when you can return to work or how much you can earn; that’s entirely up to you. However, if the case has not been settled yet, your workers’ compensation benefits may be reduced based on your income. Other advantages of a lump sum workers’ compensation settlement include:

• You will not have to take medical exams to prove your disability.
• A lump sum settlement is unaffected by your death (your family will keep the money)
• You can spend or invest the monies any way you see fit
• The insurance company won’t watch you any longer
• Settlement ends the case and reduces stress

While accepting a lump sum settlement to settle your workers’ compensation claim provides some benefits, there are also some drawbacks, which include:

• The settlement may not be sufficient to meet your needs for the rest of your life. Many lump sum settlements are gone in a few years, meaning your family will need to cover any future costs.
• Even if you save or invest your settlement, the amount is vulnerable to market fluctuations and other risks.
• You may discover unforeseen complications from your injury, and you won’t be able to seek compensation for them.

The bottom line is that there is no universal “right” answer about whether you should accept a lump sum settlement; it’s a personal decision that you should make with the help of an experienced Miami workers’ compensation attorney.

When you receive a settlement offer, you need to analyze it carefully with a clear understanding of the issues and take the following considerations into account:

• What is the lump sum offer, and is it acceptable based on your current claim for compensation and medical benefits?
• Does it take into account all those damages that you will have which are compensable under the law?
• Could your medical condition worsen, and would the settlement offer adequately compensate accordingly?
• Can you return to work, and should you?
• Does the offer consider your inability to work and/or to perform the same work done at the time of your injury?

Choosing whether to accept a lump sum settlement is a complex decision, with a number of issues at stake. And, because your decision is binding and may not be able to be reversed, it’s essential you make the right one. Making the wrong choice may cause you to lose benefits you deserve. The highly experienced Miami workers' compensation lawyers at Friedman Rodman Frank & Estrada can help you review your settlement offer and create a compensation plan that meets your needs. To schedule a free consultation with a Miami lump sum settlement lawyer, call us at 305-448-8585, and we will be happy to assist. You can also connect with us through our secure online contact form. We do not collect a fee unless and until there is a monetary resolution of the case.