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Thread: Lump Sum Payout

  1. #1
    Join Date
    Oct 2008
    Posts
    2

    Default Lump Sum Payout

    My husband fell at work, it was the 1st day of the 3rd week of employment. He died as a result of the fall. He was 37 and a father aswell. Since he had only been with the company roughly 3 weeks they say he didn't qualify for life insurance even though he died on their warehouse floor due to their negligence and that myself and his children will not receive health insurance because again, he didn't qualify. It hadn't been 90 days yet. He would have qualified had he not been killed on the job. So, we receive a small amount weekly from WC and because he hadn't been on the road yet and wasn't earning the commision he was promised we don't see any of that. We are now on Food Stamps and Medicade and barely getting by. I have tried for over a year to get the insurance company to give me and my lawyer an estimate if I deside to take a lump sum payout. As of yet, we are both getting the run around. Because my husbands ex-wife will not take a lump sum for their 2 children I am being told that our daughter and myself can't either. I have to have my husbands EX make this decision for US??? I have been able "roughly" to figure out what each of us will receive over the years and I feel this can be split so my family doesn't have to depend on FS and Medicade to survive. The WC is split between 4 and it would be a 2-2 split. Can the insurance company do this? Do all parties have to agree? Can we get health insurance from them? Also, are we entitled to life insurance because he died AT work? Thank you for reading!

  2. #2
    Join Date
    Sep 2008
    Posts
    168

    Default Re: Lump Sum Payout

    Im very sorry to hear of your loss.....Your at the right place it will take a day or two to start getting some answers....Im curious as well as to how your scenario will work out....It sounds like a tangled mess.


    Good luck,
    Devon

  3. #3
    Join Date
    Feb 2007
    Location
    Calif
    Posts
    18,045

    Default Re: Lump Sum Payout

    There is no provision that would provide the abiliity to force the ER/IC to offera lump sum payment....

    There is no reason for the ER to provide health coverage to you family...if the policy, which is by the way a policy of the issuing carrier...is that the EE must be a full time EE working at least 90 days to qualify for the benefit/coverage.. your husband did not meet those qualifications... therefore there would be no obligation to provide the benefit.

    What you are receiving now are survivors indemnity payments, and you should check with your AA, there may be a maximum dollar amount to this as well. You don't want to be suprised when/IF that day comes and you are not prepared.

    Can the insurance company do this? Yes...

    Do all parties have to agree? yes, that is the only way to negotiate a Compromise and Release...all of the parties must agree to the settlement.
    IF you were to cash this claim out you would be receiving a far lessor amount of money vs letting it pay out over time...that's just the way WC works..


    Can we get health insurance from them? Unlikely...

    Also, are we entitled to life insurance because he died AT work? If there was no policy in force, you are not entitled to any death benefits other than what WC provides...
    If you'll go here...http://www.michigan.gov/documents/wc...4_135317_7.pdf, page 15, there is some information on the duration of death benefits... appears to be a max of 500 weeks....but for the dependant children there could be some leeway...this could also be reduced if there were benefits paid prior to the death.


    I have to have my husbands EX make this decision for US??? I have been able "roughly" to figure out what each of us will receive over the years and I feel this can be split so my family doesn't have to depend on FS and Medicade to survive.
    This would work both ways... if the EX wished to cash out, the decision would be left only to you...(?)
    While it's unfortunate you find yourself and children in this prediciment...IF you were to take the lump sum, what would you 'live on' once that money were exhausted...?

    This would be a good time to explore your own job skills, while you do have this money coming in. A job is in your not too distant future...you have to take whatever steps necessary to support you and your children.

    Have you made the application for SSA suvivors benefits... those benfits are very valuable, and will last until your children are 18 y/o...and for you until you retire on your own account, or remarry...

  4. #4
    Join Date
    Mar 2008
    Posts
    417

    Default Re: Lump Sum Payout

    I would like to say that I am very sorry for your lose. I think in my mind that it should not be the EX that makes the decision for your family but I also don't know the law. Also would like to say have you checked with your local social security office? There may be a supplemental insurance to help you with your income that he has paid in for working these few years. Would also like to ask was OSHA called into this and did you get any information on what they concluded? This may help with the SSI. Now you said it was their neglitions on his death this is a big cause of a law suit that goes beyond work comp. Good luck and keep us posted. And again I am so sorry for your family on this tragedy. You and your family are in my prayer and god is looking over you.

  5. #5
    Join Date
    Jan 2008
    Posts
    9

    Default Re: Lump Sum Payout

    lost, i am truly sorry for your loss. hopefully those of us here can help you along.

    Regarding death benefits and how they are calculated. please make sure that the IC is paying at least the minimum state amount, or his actual earnings.

    This benefit is divided by the number of dependants as long as they are considered dependant. If you are a dependant, this would be for 500 week maximum for you. His children are dependant until age 18 in most instances. When a dependant 'drops' (no longer qualified), then the benefit is redivided by the remaining numbers. If you remarry, the benefit is continued for your children until they turn 18.

    Depending on your relationship with your husband's ex, you may want to get together with her the insurance adjuster and any attorney involved to work out a settlement agreement. please realize that any settlement will not be for 100% of the benefit, they are always at a discounted amount. Lastly, a magistrate would have to approve the settlement. Their job is to make sure that you are not trading a long term benefit in desperation.

    I will check back in a few days if you have any further questions. Good luck

  6. #6
    Join Date
    Oct 2008
    Posts
    2

    Default Re: Lump Sum Payout

    I'd like to thank all that have responded. Yes, we do receieve SS and I am aware of the lump sum discount if we were to go that route. The insurance company has told us "yes" we can split this then a few months later say "no" we can't. It's like no one there knows what they are doing. My lawyer has contacted them several times and we haven't even be able to get what the discounted percent would be out of them. My lawyer had written everything out for them, if 2 take a lump sum and 2 don't that we do X, Y and Z so that later the 2 remaining can NOT claim they are entitled to full benifits. He's made if very easy for them and as of yesterday they contacted my lawyer and said they are considering and will get back with us soon. We will see! I used to be in real estate but with 2 small children and this market it's just not where I wish to work. I'd like to have to chance to educate myself and also would like to start up a non-profit organization and try to get the laws changed. The laws are meant to protect the Big Companies and families are left on their own for the most part. I'd like to see tougher penalties for companies who are careless when it comes to safety in the work place. OSHA did investigate and the company was found to have failed at 4 points and the total fine for my husbands death was under $7,000.
    He fell in this companies warehouse, he had told me a week before that he was anxious to get on the road and get started with the field sales he was hired to do but due to an injury by another employee they needed him in the warehouse to help out. He told me he didn't like being up so high and lifting such heavy merchandise, my husband was strong, fit and not scared of anything but he knew this wasn't safe and not even his boss wore safety gear and didn't bother to show my husband how to use it. Not ONE of the employees had the proper permit to use the machine my husband was on when he fell, it wasn't until 2 days after the accident that everyone that worked there was put through the proper safety procedures and certified to run this machine. My husband wasnew, not certified and working alone... no one saw him fall but someone heard it. My heart goes out to the kid who found him, my mind sometimes tries to take me to that moment when he fell and all the what if's, did he slip, did he hit his head first and pass out and not know he was falling ( i hope ), did he try to hold onto something, did he feel anything??? I wasn't there and it just breaks my heart so I can't imagine what that young guy has in his memory. My husband was pronounced brain dead 5 days after and since just 5 weeks before the accident we talked with our 16 year old about organ donation on the 6th day my husband became an organ donor.
    With all this said, the loss is more then just OUR loss, my husband's loss is the biggest of them all. He was most proud of being a father and due to this company being "lazy" he is now gone! We make no more new memories and the company got a slap on the wrist.

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