Are you working with a workers compensation lawyer to handle your case, and you are wondering if you can settle your claim? Here are a few things that you need to know about settling the claim. 

Settling A Claim Is Voluntary

Be aware that the insurance provider for your workers compensation case is in no way obligated to settle your case. You've won your initial claim and your workers compensation has been approved, and the insurance provider is paying out the compensation as required by the agreement. You can make the request to settle your case, but it may or may not be approved. If the insurance company refuses to settle, you have the option of going to court to force a settlement.

Settling A Claim Should Happen After Reaching Maximum Improvement 

It is not in your best interest to settle a workers compensation case early on in the process. If you are still receiving treatment and have not fully improved, you have no idea what the remainder of your recovery will look like. It is not advisable to take a settlement because you may end up receiving less than what you deserve. 

You may decide to settle your case once the doctors have decided that you have reached your maximum level of improvement. They know that you are not going to get any better than you currently are, and it has been determined if you can return to work or if you are unable to work. At this point, it is a good idea to settle because you know what your costs will be related to your medical needs and your inability to work for the rest of your life. 

Receiving The Payment Can Be Done In Two Ways

There are a couple of ways to accept your settlement money from the insurance provider, which is done as either monthly payments or a lump sum. You may have a personal preference about how you want to receive the settlement based on what works best for you. If you receive monthly payments, you'll receive your settlement over a set period of time, and once the total amount of the settlement has been paid out you will be finished with the insurance provider. You can't change your mind once you've agreed to either form of payment. 

Be aware that your settlement money is not taxable, because it is technically not earned income. This means that you can take a lump sum payment and not be bumped into a higher tax bracket as a result. The money is not taxed by the federal government or your state. 

For more information, contact a workers comp attorney near you.