What is a benefit of structured settlements in workers' compensation cases?

Structured settlements in workers' compensation cases are designed to provide a series of payments over time rather than a single lump-sum payout. This approach has several advantages, which contribute to its appeal.

By offering periodic payments, structured settlements allow injured workers to receive benefits in a manageable way that aligns with their financial needs over time. This can be particularly beneficial in cases where future medical care or rehabilitation costs are anticipated, as it helps ensure that the worker has ongoing financial support. Furthermore, it reduces the risk of the individual mismanaging a large lump sum, which could lead to financial difficulties.

In addition, structured settlements can often be tailored to meet specific needs, such as covering medical expenses, living costs, or future life care needs, thereby providing a comprehensive solution to the worker’s financial security following a workplace injury.

The other options do not encapsulate the primary advantage of structured settlements, as they typically do not provide full compensation upfront, do not inherently simplify legal processes, and are not focused solely on permanent disability benefits.