Is a Lump-Sum Payment the Better Choice for Disability Disbursement?

Is It Wise to Trade Your Pension for a Lump Sum? | The Retirement Coaches |  JBL Financial Services, Inc.

Sometimes accidents have a lasting effect. Mobility might be restricted. Lasting pain simply cannot be healed, leaving employees incapacitated. When these situations arise, people are faced with bills and the inability to work. Many states have workers compensation programs that can help those suffering from these conditions. The plans offer payments to assist with daily needs, replacing some of the salary that can no longer be earned. Medical evidence must show an inability to hold a job, and officials must approve the applications. Once accepted for permanent disability Oregon, people must consider how they want to receive the funds. For many, a lump-sum may be the best option.

1. Handle Medical Expenses

Bills mount in these circumstances. Collectors might be asking about payments. A one-time check offers recipients the opportunity to alleviate financial hardships quickly while having something for the future. Dispersed payments are consistent, yet the system may require working out plans for larger debts to be paid off overtime. 

2. Allow for Financial Investments

While money coming over several years in a steady, reliable option, it leaves those afflicted without any control. Lump-sum programs provide a chance to do something with the payout. Some of that may be used as capital to start a new venture, creating a stronger financial foothold for the future.

3. Support Educational Endeavors

One door closed, but despite that ending this could be the start of something better. The extra funding now might cover the costs of taking college or certificate classes, allowing people to switch jobs. While you may not be able to complete a former occupation, these lessons might lay the foundation for a new career.

It may seem scary to accept everything all at once. The option requires patience and financial responsibility. Overall, though, it could become the catalyst for a brand new beginning. It could be a chance to reach a goal or find another means of success.