Lump-Sum Workers Compensation Claims: A Guide To Understanding Your Benefits.
A worker who has suffered an injury at work can receive two types of Workers’ Compensation. The first is a lump sum, and the second is periodic payments. Each has its respective pros and cons, and when choosing between them, you must consider your financial situation and the specific details of your case to select the option that will provide you with the most money. Lump-sum claims are also known as "total permanent disability" (TPD) or "total and permanent disability" (TPD) claims. They are designed to provide a lump-sum payment for the total cost of workers compensation cover if you are deemed totally and permanently disabled. The lump sum is calculated based on your pre-injury earnings. The maximum amount payable is $415,000 (2017). Note: Lump sum settlements are not the same as lump-sum buyouts, which are agreements in which the injured worker gives up the right to additional medical care and lost wages in exchange for a more significant in...