Phoenix Lawyer Handling Workers' Compensation Claim Settlements of Awards for Permanent Disability
Cases that settle for "lump sums" normally involve injured workers who are trying to obtain, or have already obtained, unscheduled permanent awards (commonly involving permanent back, hip, shoulder, head or psychiatric injuries resulting in a loss of earning capacity). To learn more about the consequences of accepting a "lump sum" workers' compensation payment, it is important to carefully weigh your options with the assistance of a knowledgeable workers' compensation attorney. At the Law Office of Stephen L. Weiss, our Phoenix, Arizona office provides clients with tailored advice and guidance in these situations.
The Industrial Commission cannot order an insurance company to pay a "lump sum" - the insurance company must agree to do so. For this reason, offers to settle on a "lump sum" basis often are unreasonably low and proposed settlement terms are often unfairly weighted in its favor.
Pros and Cons of Settling
There are many potential benefits and drawbacks to settling your workers' compensation claim rather than continuing to receive monthly payments. Below are some of them:
PRO
- After receiving a lump sum payment you will no longer have to deal with the workers' compensation insurance company.
- In Arizona, there is no cost of living increase for permanent workers' compensation awards, so the value of monthly payments decreases over time.
- If you die, your estate retains the settlement proceeds. Monthly payments end when you die.
- You may be able to use the settlement proceeds to start a small business or further your education.
CON
- Because insurance companies do not offer lump sum payments, when they make offers, they are typically lowball, deeply discounted offers. The lump sum payment offered is usually much less than the insurance company would have to pay in monthly payments throughout your lifetime.
- When insurance companies offer a lump sum payment, they usually require that acceptance be based on a relinquishment of your right to reopen your case in the future. This would prohibit you from getting any additional compensation from the insurance company, even if your medical condition worsens.
- Many people are better off getting monthly payments that they can count on in order to best manage their money and plan for the future.
Contact us so we can learn more about your case to determine if you require legal assistance and to see if we can help you.
Law Office of Stephen L. Weiss
1001 N. Central Avenue
Suite 701
Phoenix, AZ 85004
Toll Free: (877) 380-5528
Phone: (602) 257-0200
Fax: (602) 257-1555