Yes — under Illinois workers’ compensation law, you may be eligible for a lump-sum settlement if you’ve been found permanently and totally disabled (PTD) and are unable to return to any form of gainful employment. While these benefits are typically paid out as weekly checks for life, some injured workers choose — or are offered — a one-time lump-sum payment instead.
This type of settlement can offer financial certainty and help you move forward without continued involvement from the insurance company, but it’s a serious decision that requires careful consideration.
Understanding Lump-Sum Settlements for PTD
If you’re classified as permanently and totally disabled, Illinois law provides ongoing weekly payments at two-thirds of your average weekly wage for life. However, in some cases, you may have the option to settle your entire case for a lump sum.
A lump-sum PTD settlement can offer:
- Immediate financial support to cover current and future needs
- Flexibility for long-term planning, including housing, family care, or investment
- Closure — freeing you from the stress of ongoing insurance evaluations and disputes
That said, accepting a lump sum often means waiving your rights to future benefits, including medical care, unless those terms are explicitly preserved in your agreement.
Key Considerations Before Settling
Lump-sum PTD settlements are not a one-size-fits-all solution. There are important trade-offs to understand:
Finality: Once the settlement is approved by the Illinois Workers’ Compensation Commission (IWCC), your case is generally closed permanently. If your condition worsens or you require new medical treatment in the future, you usually can’t reopen the claim — unless your agreement specifically allows it.
Medical Care: Most lump-sum settlements end your right to future medical treatment through workers’ comp. If you’ll need continued care, that must be negotiated and preserved in the settlement.
IWCC Approval: Every PTD settlement must be submitted to the IWCC. The Commission will review the terms to ensure they are fair and that you fully understand what rights you’re giving up.
Why Legal Guidance Is Essential
Choosing between lifetime weekly benefits and a lump sum is much more than a financial decision. It affects your future healthcare, your family’s security, and your peace of mind.
At The Illinois Hammer Injury Law Firm, we help injured workers:
- Evaluate their long-term needs and financial priorities
- Understand the full impact of settling their case
- Preserve future medical rights when necessary
- Negotiate lump-sum settlements that reflect the true value of their injuries
We know how insurance companies operate — and we won’t let you settle for less than you deserve.
Talk to a Lawyer Before You Decide
If you’ve been deemed permanently and totally disabled, or are considering a lump-sum settlement, don’t go it alone. Contact us for a free, no-obligation consultation. We’ll walk you through your options and help you make a decision that protects your future — legally, financially, and medically.
