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The Pros and Cons of Accepting a Lump Sum Settlement

If you’ve been hurt on the job, you may have the option of accepting a lump sum settlement. While accepting a lump sum settlement isn’t always bad, it can certainly hurt you in the long run if you don’t proceed the right way. So here’s the run down of what a lump sum settlement is and when it’s in your best interest.

What is a lump sum settlement?

Also called “Compromise and Release,” a lump sum settlement is a one-time payment. If you accept a lump sum, you can’t go back to the insurance company and ask for more money to pay for future medical bills. As with any settlement, the case is closed and the insurance doesn’t owe you another cent.

When can I request a lump sum settlement?

If you have been off work due to a work-related injury, and are currently receiving workers compensation, you may seek a lump sum settlement from the insurance company. Kansas law states that compensation for disability is paid by the week until paid in full unless all parties agree to a lump sum payment to finalize and close the claim.

When would I want to accept a lump sum settlement?

There are two scenarios that some people would want to settle for a lump sum.

1. If your recovery has stopped showing improvement and your doctor believes you will not need future medical treatment.

2. Dealing with worker’s compensation has become too stressful and you don’t want to deal with it anymore.

Accepting a lump sum settlement can be in your best interest but not always. Any future medical bills that could arise from your injury will have to be paid out of pocket. Questions to taking in to consideration include:

  • Will I need another surgery in the future?
  • Will I be unable to work for years to come?
  • Will the settlement be enough to provide my family with financial security while I am unable to work?
  • Is the settlement worth not dealing with the hassle of workers compensation?

Be sure to consult your Wichita personal injury attorney before you make the decision to settle for a lump sum. An experience professional can tell you if the lump sum settlement is enough to cover your injuries for years to come.

If you have had a Kansas work place injury that was not your fault and need medical treatment, you need an experienced professional who can help you get back on the road to recovery. Call us today at 316-269-1414 or visit our contact page here. Our Kansas personal injury attorneys will provide you a free initial consultation and if we take your case you don’t pay a dime unless we recover money for you. Even then we only take a percentage of the total amount of your recovery.

If you have questions on what you should be looking for when you are making a decision to hire a Kansas personal injury lawyer, read our article located here.

Make sure you download our free car accident app for iPhone or Droid to protect yourself in event of an auto accident.

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Ray Hodge & Associates proudly represents victims and their families across the state of Kansas, including Wichita, Andover, Derby, Goddard, Haysville, Mulvane, Rose Hill, Newton, El Dorado and Hutchinson. Call today for a free consultation all over the state of Kansas. We have proudly served clients in Sedgwick, Butler, Sumner, Harvey, Kingman and Reno Counties.