When all of the parties involved in a workers' compensation case reach a settlement on how much money the injured employee will receive, the legal proceedings aren't over just yet. If you're the injured employee, you'll need to agree to how you receive the financial settlement. A lump sum may be possible, which can certainly be appealing for you, but there's a chance that your employer will not wish to pay you in this manner. Instead, it might suggest a monthly payment. While this payment structure may not seem as palatable as a lump sum, here are some reasons that it may be a good idea.
It Encourages Responsible Spending
Just as winning a lottery or receiving a large inheritance can be challenging to the recipient, a significant financial settlement in a workers' compensation case can also be difficult when you get it as a lump sum. If you don't trust yourself to responsibly handle what might be several hundred thousand dollars, monthly payments may be advantageous. You'll have all of the money that you need to cover your living expenses and injury-related costs without the risk of spending it quickly and irresponsibly on things that may be exciting but that aren't conducive to your healing process.
It Reminds You To Focus On Your Health
In a sense, a monthly workers' compensation payment can serve as an effective reminder to focus on your health. If you were to receive a lump sum, you might start to think about all of the ways to spend the money — and few of them may apply to the injury that you sustained on the job. When you get a monthly payment, you may be more apt to book the therapies — physical therapy, chiropractic, and massage appointments, for example — and pay these expenses with your monthly payment.
It Allows For Budgeting
Just as a monthly pension payment can allow you to set a budget, your workers' compensation payment that arrives each month can also be conducive to you establishing a budget for yourself. The approach that you take depends on how much you need to spend on medical costs as well as what household bills the payments you will need to cover to offset your lost income. These payments won't carry on indefinitely, so you'll need to budget with your future in mind. In some instances, this could mean getting another job once you're physically and mentally able to do so.
To learn more about workers compensation, contact your lawyer or visit sites like http://mcmullenochs.com.Share