Michigan lawyer explains what happens to workers’ comp benefits when you die and why settlement can be smart financial planning.
We see employees who suffer from permanent disability after getting hurt on-the-job. This means they are unable to return to gainful employment and may need lifetime medical care. Supporting a family with just 80% of regular pay can be difficult and require tough financial decisions. Our experience shows that planning for the future is the key to getting a good result. Many clients ask us what happens to their Michigan workers’ comp benefits when they die? This is an important question that everyone should be able to answer. Here are some strategies to make sure these benefits do not end when a person dies.
When an employee happens to die due to a job-related injury or illness in Michigan, certain workers’ comp benefits may be available to their surviving dependents. These are known as death benefits or survivor benefits, and they are typically paid to family members—such as a spouse or dependent children—who relied on the jobholder for financial support. In addition to ongoing financial assistance, state law also allows for reimbursement of reasonable funeral and burial expenses, up to a statutory limit.
If an employee happens to die while they are collecting Michigan workers’ comp benefits, then medical and wage loss benefits stop immediately. Negotiating a settlement before a person dies is a good strategy to protect future income for their family. This can be accomplished with a lump sum cash payment or with an annuity that pays over several years.
General information about death benefits
Death benefits for dependents
Eligibility – In Michigan, if an employee happens to die workers’ comp death benefits are typically available to a deceased worker’s surviving spouse and dependent children. To qualify, these individuals must have relied on the jobholder for financial support at the time of the injury or death.
Payment – Survivor benefits are generally paid as a percentage of the jobholder’s average weekly wage, which is $1,164 in 2025 according to the Workers’ Disability Compensation Agency (WDCA). In our state, these payments are made in weekly installments rather than as a lump sum, and the amount may be adjusted based on the number of eligible dependents.
Duration – The length of time benefits are paid depends on the status of the dependent. For example, a surviving spouse may receive benefits for a fixed period (up to 500 weeks), while dependent children may qualify until they reach a certain age or educational status.
Other Dependents – In some cases, other family members—such as parents, siblings, or grandchildren—may be eligible if they can demonstrate actual financial dependence on the deceased jobholder at the time of death.
Funeral and Burial Expenses
Coverage – In Michigan, if someone happens to die on the job as a resule of a work-related injury or illness workers’ comp provides reimbursement for reasonable funeral and burial. This benefit is available up to a maximum of $6,000.
Who Receives the Payment – The reimbursement is typically paid to the individual or organization that covered the funeral and burial costs, such as a family member or funeral home. Proper documentation of the expenses is required to receive payment.
What happens to Michigan workers’ comp if an employee dies while collecting benefits?
Work injury benefits pay for medical treatment and lost wages when someone is hurt on-the-job. Insurance companies stop paying these benefits when that person dies. This is because medical treatment is no longer needed. There are no more lost wages because they person has died. Family members can get survivor’s benefits if the death was related to the workplace accident.
How is a settlement handled if an employee dies before receiving a lump sum payment?
In Michigan, when someone happens to die while they are on workers’ comp then collection of benefits ends unless there is a settlement. This is when future benefits have been traded for a lump sum settlement. It is an attractive option for most people because it gets the insurance company off their back. It also guarantees money for a family even if death should occur later.
Settlements can be structured in a variety of ways, so money can be paid out over time. Settlements often include money for additional medical treatment and these funds can be passed through to the estate. It is a good idea to speak with an experienced lawyer before negotiating a settlement to make sure the terms are correct. Insurance companies frequently include revisionary clauses that means some money goes back to them at the time of death.
What happens if a person dies while their workers’ comp case is pending in Michigan?
Employees sometimes find themselves in court because of a disputed claim. In Michigan, if a person happens to to die while their workers’ comp case is still pending, it may be possible to pursue a claim for any unpaid benefits. However, succeeding at trial can be extremely challenging without the jobholder’s live testimony to support the case. Survivors benefits would not be available unless it can be proved that they died because of a workplace accident.
What if someone dies from a workplace injury?
In Michigan, if someone happens to dies from a workplace injury, then workers’ comp survivor’s benefits are payable. This can occur days, months, or even years after the injury occurred. This is especially true in the case of occupational diseases. Family members can get 500 weeks of wage loss benefits. This money will not be paid unless there is a dependent like a spouse or child.
Need help? Contact our attorneys now for a free consultation!
If a loved one happened to die on the job in Michigan or passed away while collecting workers’ comp benefits and have questions, call now at (855) 221-2667 or fill out our contact form for a free consultation with an experienced lawyer. There is absolutely no cost or obligation. We’re here to help.
For more than 40 years, our lawyers have been helping people like you who have suffered from on-the-job injuries in Michigan. We understand the physical, emotional, and psychological hardships you are experiencing from your accident. We also have the skill, experience, and know-how to protect you and get you the best possible payout amount for your case.
To see what our own clients have to say about the caring, compassion, and communication they received from us, you can read in their own words about their experience here on our testimonials page from clients we have helped.
Remember, every work injury claim is different and must be negotiated on its own merits. Do not accept any payout amount without fully understanding your legal rights.
Michigan Workers’ Comp Lawyers law firm has consistently secured the largest settlements in the state and is the best choice for your case. We never charge a fee to evaluate a potential case. Our law firm has represented injured and disabled workers exclusively for more than 40 years. Call (855) 221-2667 for a free consultation today.
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