Workers’ compensation claims in Virginia: What is a structured payment?
The workers’ compensation system in Virginia looks simple on paper. In the ideal world, you shouldn’t have to struggle to pay your medical bills or get workers’ compensation benefits as long as you complete the necessary formalities. However, because these benefits are paid by the insurance company, it is best to err on the side of caution. Immediately after getting injured and getting basic medical care, you should consider talking to a Virginia Beach workers’ comp attorney. They can help explain your rights and legal options (if your claim is denied or your employer retaliates against you). In that context, you may have heard about the term “structured payment”. Here’s an overview for your help.
In simple words, a structured payment is an arrangement where an injured worker takes payments periodically instead of settling for a one-time payment. The structured payment is such that it matches your goals and needs. There are several benefits of opting for the same. Firstly, if you choose to get payments in installments, the amount would be tax-free, and there is always a guarantee that the money will be paid. You also get 100% lifetime exclusion with regard to capital gains, income, and divided. Because the payments are made as per a specific schedule, you will not have to worry about future medical treatment costs. If you are not good at financial management, having the entire money at once could be a huge mistake, and you could end up with nothing.
When to consider structured settlements?
There are some circumstances when you should consider structured settlements over a lumpsum amount –
- You may need medical care and treatment for a longer-term
- You have suffered serious injuries
- You have temporary or permanent disabilities
- You have dependents
Talk to an attorney
Every worker’s case is unique, and while you may assume that you would be able to manage things on your own, it’s best to talk to an experienced attorney. Top law firms in Virginia usually have the option of a free consultation, and their paralegal team members and lawyers can review your workers’ compensation claim. They can advise you on how you should move ahead with your claim and would negotiate with the insurance company on your behalf.
You don’t have to deal with the insurance adjuster and their offer alone – Talk to an attorney today and know your rights and the workers’ compensation benefits you are entitled to.