Item: Friedman Rodman Frank & Estrada, P.A.
Rating: 5
Author: Daniel

Lump Sum Settlements

If you or a family member has been injured and are being offered a cash settlement, it may make sense to accept it. However, depending on your individual situation, signing away future benefit and rights in exchange for a lump sum could be disastrous. Even though the amount may seem large, initial settlement offers are usually far less than you need for your injury.

Once you enter a settlement, or sign anything from your employer or an insurance company, it may be difficult or impossible to reverse your decision. Always consult an attorney before surrendering your rights with a signature. The Miami workers' compensation attorneys at Friedman Rodman Frank & Estrada, P.A. can help you make an informed decision that’s right for you and your family.

If you’ve been injured, you may be offered a lump sum settlement in exchange for your lost wages, your medical expenses, or both. However, you will waive your rights to additional claims and future benefits that could arise as a result of your injury, and a lump sum may not adequately account for future medical needs and wage losses. Even if your future medical expenses exceed the amount of your settlement, you won’t be able to collect more money to cover those costs.

The alternative is a structured settlement, where you receive some compensation now and the rest over time. Typically a structured settlement is more expensive for an insurance company in the long run, so they are eager to have you accept a lump sum. However, there are advantages and disadvantages to taking a lump sum settlement, and it’s important that you understand both and choose the action that’s right for you.

Advantages of a lump sum settlement

Settling your claim generates an immediate payment, rather than spreading the benefits over years.

You will not facing restrictions on returning to work or earning levels. Often, benefits are reduced based on your income.

You don’t have to take defensive medical exams to prove your disability.
Your family with have the money if you die, rather than benefits that end with your death.
Disadvantages of lump sum settlements
The offer may not be adequate to meet your needs for the rest of your life. Many lump sum settlements are gone in a few years, leaving you to cover any future costs.
Even if you save or invest your settlement, the amount is vulnerable to market fluctuations and other risks.

You may discover unforeseen complications from your injury, and you won’t be able to seek compensation for them.We’ll help analyze your situation

When you receive a settlement offer, you need to analyze it carefully with a clear understanding of the issues, and review several critical areas:

What is the lump sum offer and is it acceptable based on your current claim?
What is the value of a structured settlement?
Could your medical condition grow worse, and does the offer adequately compensate you for that?
Can you return to work, and should you?

Choosing whether or not to accept a lump sum settlement is a complex decision, with a number of issues at stake, and your decision is binding. Making the wrong choice may cause you to lose the full amount of benefits you deserve for your injury. The highly experienced Miami workers' compensation lawyers at Friedman Rodman Frank & Estrada, P.A. can help you review your settlement offer and create a compensation plan that meets your needs. For a free consultation in English, Spanish, or Creole, contact our Miami/South Florida offices at 305-448-8585 or toll free at 877-448-8585, or fill out our online contact form.

★★★★★

Carolyn Frank and her firm represented me on a workers compensation injury case, under the defense base act. She did a excellent job from the moment I contacted her until 3 years later the case was settled. Every benefit I was entitled too, Carolyn fought hard to secure. E-mails and phone calls were always returned promptly. Definitely 5 star rating. Daniel

I can't express how grateful I am for Elizabeth Estrada, attorney, and Elizabeth Cantin, secretary, for all the hard work in order to defend me in my time of need. My lawyer and secretary spent time explaining each step and what was to be expected. Because of this I felt a part of the whole process and understood what was going on. Thank you so much for all your hard work!  Nicole D.

Attorney Elizabeth Estrada did an amazing job representing one of my family members. She is knowledgeable, genuine, trustworthy, and one of the most hard working attorneys that I know. She was readily available to assist my family member throughout the entire process. I felt confident my family was in great hands. Krystine C.

 Carolyn is very professional. Honest since the beginning of the process till the end. She set up a game plan with you at the consultation and makes it happen. Peterlee G.

I would like to thank the staff of Friedman Rodman Frank & Estrada, P.A. The staff is professional. My attorney, Ronald Rodman, was responsive towards my email and a great advocate on my behalf for my car accident. I highly recommend this office. I hope that I will not get in a car accident again, but if I do, I'm calling Mr. Rodman. Orlando R.

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