When you’re struggling with an on-the-job injury, your work comp benefits can make a world of difference. You’ll receive weekly payments, much like your wages, which should cover your expenses and help cover your lost wages.
However, you might want your whole settlement at once. For some Iowa workers, this might be the best option for you. If you’re not certain, however, think about the reasons you might choose to take a lump sum settlement and what may be best for you.
No Interest on Your Bills
When you have the full settlement you need, dealing with the expenses you might have gained becomes much easier. As time passes, your debts accrue interest. When you’re getting weekly payments, that could mean staying only just ahead of your bills.
With a lump sum settlement, however, you can pay those bills off at once. That payment can help you avoid creditors harassing you for a payment or the pressure of constant debt. While that means you might have used up a large portion of your settlement already, you’ll have peace of mind that you don’t have to worry about those bills.
Handle Your Expenses on Your Time
Some Iowa workers choose a lump sum payment because it lets them take control of their own funds. You might be concerned about losing those funds if they think you’ve approved, for example, or you might simply want to separate your expenses out differently.
With a lump sum payment, you may waive all future rights to compensation and take that full settlement. Remember, however, that this means you’ll waive all further options for compensation. You’ll be unable to receive any further benefits, so remember this before you file your claim.
Choosing a Lump Sum or Payments
When you’re injured in a work accident, getting your benefits is vital. Once you’re approved, however, what’s your next step? For many, that means choosing better weekly payments or a lump sum payment of all your benefits.
Which option should you choose? That generally depends on your situation. If you want to avoid interest, for example, taking a lump sum payment might be the best option for you. If you expect to heal quickly and not need further compensation, you might also choose to take a lump sum.
Not sure which to choose? You’ll need an Iowa workman’s comp lawyer on your side. They’ll give you the help you need to make the best decision for your claim.