Why is Settlement Done as a Structured Settlement?

[Jane0218]

PA here.

My husband has RSD--has been in treatment for about 1 1/2 years. His attorney has agreed to settle. My husband wants to get out of the W/C ordeal, it's just too much for him.

The attorney said if the Ins. Co. agrees to a settlement it will be a 'structured settlement' over the course of 8 years.
1) Why is that? Why isn't it a lump sum? My husband hasn't asked his lawyer because, honestly, they don't get along that well and he doesn't want to call him back just to ask this question. He also doesn't want to change lawyers at this point.

Also, RSD is a condition that can change over time. It can worsen, stay the same, lessen, and there could be a day when my husband just doesn't have any more chronic pain.

2) If a settlement occurs and my husband is one of the lucky ones where the pain disappears, is he allowed to work and still collect the balance of the settlement if he is in say, year 2 of 8?

Thank you.

[Bad Boy Bad Boy]

Here is plenty of information on PA work comp settlements. Explains plenty;

http://www.legallawhelp.com/legal_law_ch...ments.html

[1171]

you may have answered your own question.
why would a carrier pay out a large lump sum just to have the worker go back to the same or similar job in 2 years.
with a structure the payments can vary if the disability changes.

[Jane0218]

1171 Wrote:you may have answered your own question.
why would a carrier pay out a large lump sum just to have the worker go back to the same or similar job in 2 years.
with a structure the payments can vary if the disability changes.

It "can" vary, not it "will" vary, correct?

Doesn't the settlement terms dictate if payments will or will not change if the disability changes?

Thanks!

[Bad Boy Bad Boy]

A structure settlement does in PA yes.

[Timothy Belt]

To answer your second question first, unless there is language in the settlement or annuity agreement stating otherwise, your husband can start a new job the day after the settlement is approved without losing any of the settlement money.

As to the reasons for a structured settlement, there are many possibilities. For some individuals, the security of having a smaller lump sum followed by continuing checks for a period of time is desirable. Often the IC will push for a structured settlement if they are obtaining it through a subsidiary since this reduces their overall cost. There are other possible scenarios, but the only one that knows for sure would be the lawyers that brokered the deal. Whether or not he likes him, your husband needs to talk to his lawyer.