Lump Sum Workers’ Compensation Payments
In many cases, workers’ compensation payments are paid on an ongoing basis, with injured workers or the specified recipients receiving regular payouts on a monthly schedule. While certain payments – like death benefits – may automatically be paid out in a lump sum, injured parties may also specifically petition insurers to have their ongoing payments paid out in a lump sum (according to Colorado Code Section 8-43-406).
Reasons for choosing lump sum benefit payments over a structured annuity include that recipients may want to:
- Invest the money in a specific type of account, make a large purchase or commit the funds to some other financial obligation
- End their relationship with the insurer, close their workers’ compensation case and effectively move on with their lives.
How to Request a Lump Sum Payment
In order to request that an annuity is paid out as a lump sum, recipients must submit a written notice of their request to insurance companies. At this point, insurers have 10 days to determine the amount of the lump sum payment, pay the recipient and submit the appropriate verification of payment to the court. Other important facts to point out are that:
- The insurer must disclose to the recipient how it calculated the lump sum payment.
- The calculation must be based on the current value of the annuity, as well as an assumed annual interest rate of 4 percent (if the recipient has not worked out another arrangement via his lawyer).
- The final lump sum payment may not be more than $60,000.
- The lump sum payment cannot be leveraged against a person in order to try to get that individual to waive his rights to permanent disability benefits.
When Insurers Get Shifty…
Because insurers are always looking out for their profits, they will likely try to undervalue injured workers’ lump sum benefit payments in the hopes that injured workers are financially desperate enough to accept lower payments and/or these individuals don’t notice that they may be getting shortchanged. Some of the specific ways in which insurers may get shifty and try to undercut the value of an injured worker’s lump sum workers’ compensation benefits may include by:
- Using questionable or even unethical methods to calculate the lump sum payout
- Unnecessarily delaying the payouts to try to get injured parties desperate enough to accept lower amounts
- Attempting to try to get injured parties to relinquish some of their rights in exchange for the lump sum payments.
The Experienced Denver Workers’ Compensation Lawyers at the Bisset Law Firm
Are you considering trying to obtain a lump sum workers’ compensation payment? If so, the skilled Denver workers’ compensation attorneys at the Bisset Law Firm want you to know that we:
- Have decades of experience standing up for injured workers’ rights
- Will work tirelessly to help our clients obtain the benefits they need and deserve
- Are dedicated to providing each of our clients with the highest quality legal representation
- Are committed to helping our clients secure the maximum possible payouts for their injuries and losses.
Injured workers who choose to work with our respected Denver workers’ compensation lawyers can rest assured that we will work diligently to keep their cases moving forwards and that we will keep them advised of every development in their case. While this means that our clients can count on us to promptly return every one of their phone calls, it also means that we are committed to meeting all of their case deadlines and providing them upfront, honest answers regarding the strengths and weaknesses of their case.
Contact Us Today
At the Bisset Law Firm, we offer knowledgeable, superior counsel to anyone seriously injured on the job. Contact our Denver workers’ compensation lawyers by calling (303) 894-8900 to learn more about your rights and receive a professional evaluation of your case.