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Is a lump sum commutation right for you in Arizona

Published October 30, 2020 by Matt Fendon Law Group | Workers' Compensation
Is a lump sum commutation right for you?

Being injured on the job is no joke. It can leave you not only with physical pain, but it can also leave you without the financial resources you need to secure the medical care that is necessary to achieve the best recovery possible under the circumstances. It doesn’t help that your injuries might prevent you from earning your normal wages. Fortunately, Arizona’s workers’ compensation might provide some relief, but you should fully understand how to navigate the system so that you can obtain the favorable outcome you need and deserve.

Is a lump sum commutation right for you?

In most successful workers’ compensation cases, the injured individual receives weekly pay to help offset medical and rehabilitation costs, as well as lost wages. But sometimes this piecemeal fashion of paying out benefits simply isn’t beneficial to you. It might disallow you from obtaining the care you need, and it could even delay your ability to return to work. In these instances, you might want to consider a lump sum commutation.

The limits on lump sum commutation

It’s important to note that there are limits on lump sum commutations. Scheduled awards are capped at $25,000, while unscheduled awards can’t exceed $150,000. The ultimate determination of how much you’ll receive under one of these commutations depends upon the value of your claim at the time you file your request for commutation. This means your remaining payments and any payments already made will be taken into account. So, proving the extent of your injury on the front end can play an important role here.

Know how to present your case

Before you can commute your workers’ compensation benefits to a lump sum, you have to show that doing so would provide for your financial benefit or rehabilitation. This might sound easy enough, but these requests are often denied. This means that you need to be prepared with evidence that demonstrates why you’re should receive commutation. Also, if your request is denied, then you have the option to appeal. So, if you’ve been injured on the job and want the best outcome for you, then you need to take an active role in your case. While that might sound daunting, you can find the support you need from an attorney who is experienced in this area of the law.

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