4 FAQs About Workers Comp Structured Settlements

A structured settlement is a financial arrangement in which an injured worker receives their compensation in periodic payments rather than a lump-sum payment.

What Is a Structured Settlement?

A structured settlement is a financial arrangement in which an injured worker receives their compensation in a series of periodic payments rather than a lump-sum payment. These payments are typically spread out over a period of time, such as several years or even a lifetime.

Why Should an Injured Worker Consider a Structured Settlement?

There are several reasons why an injured worker might want to consider a structured settlement, including:

Security: Structured settlements provide a guaranteed stream of income, which can be particularly important for injured workers who are unable to work or have reduced earning capacity.

Customization: Structured settlements can be customized to meet the specific needs and goals of the injured worker. For example, the payments can be structured to provide a steady income stream over a long period of time, or they can be designed to provide a larger amount upfront to cover immediate expenses.

Control: Structured settlements give injured workers more control over their financial future, as they can choose the terms and payment schedule that best meets their needs and goals.

Avoidance of Risky Investments or Bad Financial Decisions: It’s not uncommon for individuals who receive a large sum of money all at once to make poor financial decisions or be tempted to invest the money in high-risk, high-reward ventures. Structured settlements can help prevent these types of mistakes.

Peace of Mind: Structured settlements can provide a sense of security and stability for injured workers, which can be especially important during a difficult and uncertain time.

Who Determines the Number of Payments and the Payment Schedule?

The number of payments and the payment schedule for a structured settlement is typically determined by the parties involved. This may include the injured party, their attorney, the employer, or their insurance company. In some cases, a neutral third party, such as a mediator or arbitrator, may be involved in determining the terms of the structured settlement. The payment amount and schedule will typically be based on the severity of the injury, the projected future medical expenses, and the lost wages of the injured party, among other relevant factors.

How Can I Avoid Tricky Structured Settlement Offers?

There are a few steps that injured workers can take to avoid tricky structured settlement offers:

Seek Legal Advice: It’s important to have a qualified attorney review your structured settlement offer to ensure that it is fair and reasonable. An attorney can also help negotiate any terms that may be unfavorable to the injured party.

Understand the Terms: It’s important to fully understand the terms of the structured settlement, including the payment schedule and amounts, before agreeing to any offer.

Consider Future Needs: You should consider their future financial needs when evaluating a structured settlement offer. This may include long-term medical expenses, lost wages, and other financial obligations.

Get a Second Opinion: You may want to seek the advice of a financial planner or another financial professional to help evaluate the structured settlement offer and determine if it is in your best interests.

If you’re an injured worker considering a structured settlement as part of your workers’ compensation claim, we’d be happy to help you understand your options and make the best decision for your needs. Call us 24/7 to speak with an experienced Missouri workers’ compensation lawyer with over 30 years of experience.