If you are receiving workers’ comp benefits, you may have the option to trade future benefit payments for a large one-time lump-sum settlement. The question is: is this the right decision for you?

We will dive into the pros and cons of deciding to reach a settlement, and explain how workers’ comp works.

Workers’ Compensation Settlements vs. Ongoing Benefits

Similar to other states, in Michigan, injured employees may qualify for workers’ comp after a work-related injury. These benefits include:

• Full coverage for medical treatment related to your work injury
• Wage loss benefits, equal to 80% of your after-tax weekly wages based on your highest-earning 39 weeks prior to your work-related injury
• Vocational rehabilitation services, if you are unable to return to your previous job

The alternative to these benefits listed above is reaching a lump-sum settlement. In Michigan, you can pursue a settlement as soon as six months after your injury, but it is recommended to wait until you reach Maximum Medical Improvement (MMI), which is the point at which your condition is stable and unlikely to improve further. Choosing to settle too early can result in an unfairly low payout. The lump-sum settlement is determined by multiple factors. These factors include your injury’s severity, expected recovery time, ability to return to work, essentially estimating your future expenses and combining them into one large, tax-free payment.

Why Would I Want to Settle My Workers’ Comp Case?

The potential benefits of a lump-sum settlement include:

• Tax-free cash payment
• Greater control over choosing your own medical care path
• No more independent medical exams (IME)
• Avoid the possibility of being harassed by the insurers
• Utilizing the money for retirement, transitioning to a new career, obtaining vocational retraining, or whatever you choose.
• Having the ability to accept another job without worrying about losing benefits
• Opening a new chapter in your life

Listed below are potential risks of settling your workers’ comp case:

• Settling before reaching MMI can potentially lead to an unfairly low compensation
• You give up the right to any future benefits, even if your condition gets worse
• No additional payments if your medical or financial needs increase later on

If you have any questions, call us at 1-866-464-2889 for a free case evaluation to learn about your legal rights.

Injured At Work? Contact The Law Offices Of David Zimmerman For a Free Consultation

Request a Free Case Evaluation now at 1-866-464-2889. Clients Represented in Thousands of Workers’ Compensation Claims, Trials, Settlements in Metro Detroit, Michigan, Lansing, MI, Flint, MI, Saginaw, MI, Monroe, Michigan, Michigan’s Thumb and Port Huron areas. Every day we work with our clients as we go about taking care of their crucial legal issues. The trust we develop with our clients is the foundation of our relationships. At the Law Offices of David Zimmerman, our attorneys help our clients achieve their goals by offering premium legal services. We never stop working to continuously strengthen those relationships.