Maximize how much you get with a workers’ compensation settlement and hidden tricks you might not know about.
We previously blogged about the average settlement amount for a Michigan workers’ compensation case. How the amount paid is based upon future medical and wage loss benefits.
Settlement allows a person to get a lump sum cash payment and move on with their life. However, it never pays enough to support them forever.
There are pros and cons to any settlement. Here are some tricks that you probably did not know about.
1. Goodbye SSDI offset
Individuals who receive both workers’ compensation and Social Security Disability (SSDI) are subject to an offset. Social Security will reduce monthly benefits if combined payments exceed 80% of average current earnings. This penalty can be avoided by prorating a workers’ compensation settlement over life expectancy. This will ensure you get 100% of your SSDI payments.
2. Double recovery if you are getting STD/LTD
Some people get short-term disability (STD) or long-term disability (LTD) when workers’ compensation is denied. This money is usually paid back if workers’ compensation is later approved. Settlement allows a person to structure his or her workers’ compensation payments in a way that does not require payback. This can result in a double recovery and more money in your pocket!
3. Get your money immediately in cash
Lost wages under workers’ compensation are paid weekly. This does not give you much freedom to live your life. Getting a cash settlement opens the door to more options. You can even waive the statutory 15-day waiting period and get your check within 7 days.
4. Pay no income tax
Settlements under workers’ compensation are 100% income tax free. This is true even if you get several years of lost wages upfront.
5. Invest in your future
Having a plan is the quickest way to a successful recovery. Do you want to be retrained for a new career? How about starting a business? Maybe you just want to find a new job? Settlement puts you in the driver’s seat and funds can be used for any purpose. We tell our clients to invest in themselves and use settlement money to make their lives better.
Michigan Workers Comp Lawyers never charges a fee to evaluate a potential case. Our law firm has represented injured and disabled workers exclusively for more than 35 years. Call (855) 221-2667 for a free consultation today.
Photo courtesy of Creative Commons, by kenteegardin.