After a workplace injury, you may file a workers compensation claim and be awarded a structured settlement with regular monthly payments. In some cases, such as if the worker is able to be rehabilitated and return to work, the structured payments may cease after a period of time. In other cases, such as if the worker is never able to fully heal and return to work, the payments may continue on for a lifetime. Some payments may even continue on to the worker’s family members after the worker passes away. You may, however, have the option to sell the annuity for a lump sum amount. With a closer look at how to use these benefits, you can better plan for your future after filing a workers compensation claim.
When a worker has been injured on the job, he or she likely is unable to return to work for at least a short period of time. Structured settlement payments can replace or supplement the worker’s lost wages so that the worker and his or her family can continue to enjoy the lifestyle they have grown accustomed to. In some cases, the settlement payments are sufficient to cover medical bills that the worker is responsible for as well. You can use these funds to recuperate after an injury without the stress of financial worries, provided the settlement payments are large enough to pay for all of your bills.
When to Sell Your Structured Settlement Annuity
There are instances when a structured settlement annuity with monthly payments is not an ideal payment structure, and you may prefer to have access to all of the funds owed to you up-front. For example, if you have thousands of dollars or more in medical bills due right now and no way to pay for these expenses, selling your annuity for a lump sum amount may be a better option for you. However, if you are later unable to continue working, you would not benefit from receiving the settlement payments each month, and this could leave you in a financial bind. Keep in mind that you typically will sell an annuity for a fraction of the total face value of the annuity, so you do lose some money when you sell for a lump sum amount. If you have large medical bills, it may be worthwhile to take out a bank loan to pay for the bills in monthly installments or to contact the medical provider to set up a payment plan that works well with your annuity payments.
How to Sell Your Structured Settlement Annuity
If you decide to move forward with the sale of your annuity, you may benefit by working with an annuities broker or consultant. This is a specialist who can shop around to find you the best deal on your annuity sale. He or she often will continue to serve you throughout the sales process by aiding with paperwork, answering your questions and more. Ensure that you work with a certified or licensed broker or consultant, and your annuity buyer should also be appropriately licensed. The process of selling your annuity may take several weeks or longer, but the process will be straightforward when you work with the right broker or consultant.
While it is great to know that you have been awarded financial compensation after suffering from a workplace injury, you do have a major decision to make. Carefully review the option to keep the settlement annuity in monthly payments versus getting a lump sum payment to decide which option is best for you and your family.