Workers Comp Lump Sum
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Guide
Workers Comp Lump Sum Guide
Evaluate upfront cash compromise and release settlements against structured ongoing indemnity benefits.
Formula
Present Value = Payment * [(1 - (1 + r)^(-n)) / r] + Future Medical - Legal FeesFrequently Asked Questions
- What is a compromise and release?
- A compromise and release settles all wage and future medical obligations for a negotiated lump sum.
- Why are future payments discounted?
- Insurers discount structured payments to present value using an actuarial interest rate.