Lump Sum or Monthly Payments: How to Choose the Right Workers’ Comp Settlement Option in Florida
You get injured on the job in Fort Lauderdale, and a workers’ compensation settlement is on the table. You have the choice of receiving a one-time lump-sum payment or ongoing monthly benefits.
There is no universal right answer, and what works for one injured worker may not work for another. Our experienced Fort Lauderdale workers’ compensation lawyer explains how Florida workers’ comp settlements work and what to consider before making this decision.
How Lump Sum and Ongoing Benefit Payments Work in Fort Lauderdale Workers’ Compensation Claims
According to the Florida Division of Workers’ Compensation, injured workers may resolve their claims through a lump sum settlement known as a Washout, which closes out all future workers’ comp benefits in exchange for a single payment. Alternatively, workers may continue receiving ongoing benefits as they come due without settling the claim outright.
Under Section 440.20 of the Florida Statutes, a Judge of Compensation Claims must approve any lump-sum settlement offer by the court to ensure it is in the injured worker’s best interest. Key differences between the two include:
- A lump sum settlement closes your claim permanently, meaning you can’t get additional benefits if your condition worsens or requires future medical care.
- Ongoing monthly benefits continue as long as you remain eligible under Florida law.
- You can use a larger lump sum amount to pay off debt, cover medical costs, or invest for the future.
- Ongoing payments provide financial predictability but depend on the insurer’s continued compliance and your ability to meet eligibility requirements.
Determining which option is right for you depends on your age, the severity of your injury, your future medical needs, and your financial situation.
Questions to Consider Before Accepting A Workers’ Comp Settlement in Fort Lauderdale
Insurers are for-profit businesses and often push for lump-sum settlements because they can cost less than in the long run. Before agreeing to any settlement structure, consider these questions:
- Have you reached maximum medical improvement, and are you unlikely to require any significant future treatment?
- Does the lump sum amount account for future medical costs, lost earnings, and any permanent impairment?
- Do you have a plan for managing a lump-sum payment that covers any long-term needs?
- Have you calculated the total of ongoing monthly benefits over the expected duration of your eligibility and compared that figure with the lump sum?
Before making your decision, discuss your options with an experienced South Florida workers’ compensation lawyer.
Weighing Your Settlement Options? Consult Our Experienced Fort Lauderdale Workers’ Compensation Lawyer
Are you trying to decide between a lump sum settlement and ongoing workers’ compensation benefits in Fort Lauderdale? The Law Offices of David M. Benenfeld, P.A., provides the trusted legal representation you need. Our experienced Fort Lauderdale workers’ compensation lawyer can evaluate the situation, estimate what your claim may actually be worth, and ensure any settlement reflects the full scope of your losses.
To request a consultation at our Sunrise, Fort Lauderdale, or West Palm Beach office, call or contact us online today.
Source:
leg.state.fl.us/Statutes/index.cfm?App_mode=Display_Statute&URL=0400-0499/0440/Sections/0440.20.html