Episode 127: In today’s episode, Calloway County worker’s compensation attorney Jeff Robert explains several important reasons using structured settlements in Kentucky workers’ compensation claims can be very beneficial to the injured worker and his/her family.
What Is a Structured Settlement?
In workers’ comp, this type of arrangement is underutilized. Jeff was invited to discuss the advantages of using structured settlements in Kentucky workers’ compensation claims as a continuing legal education topic for other attorneys, at a seminar hosted by the University of Kentucky.
A structured settlement uses an annuity that pays out benefits over a period of time. The annuity is purchased by the insurance company, not the injured party. Many worker’s compensation claims are settled including income benefits, usually listed as permanent partial disability or permanent total disability. In Kentucky, permanent partial disability benefits are usually paid out over 425 weeks or 520 weeks. They can also be settled as a lump sum payment. Permanent total disability is usually paid out until at 70.
A structured settlement allows the benefits to also be paid out over time. However, there are several other important benefits.
Medical benefits can also be part of the workers’ compensation settlement. Often the use of a Medicare set-aside account is used, to avoid having these benefits cause an inadvertent decrease in other benefits to which the injured worker may be entitled. A fund is set up to take care of future medical expenses, related to the workplace injury. A structured settlement annuity can be set up to handle the future medical and non-Medicare covered medical expenses, as well.
Protection Against Having Your Workers’ Comp Disability Claim Reopened
It’s possible to reopen a workers’ comp claim to evaluate the disability aspect of the settlement. At times, the insurance company will do this to verify whether the injured worker should still be eligible for disability benefits. A judge may decide to discontinue the workers’ disability payments.
However, when a structured settlement annuity is established, the insurance company forfeits it’s right to reopen the disability claim.
Structured Settlement Amounts Can Include Lump Sum or Milestone Payouts
It’s possible to set up the annuity so that the client receives a lump sum of part of the disability benefits upfront, or at specific milestones. The remaining amount would be paid out in monthly payments. This provides needed flexibility for the injured worker and his/her family.
A Structured Settlement Avoids Workers’ Comp Benefit Cut-offs
As Jeff explained earlier, normal disability benefits end after 425 weeks, 520 weeks or age 70. Another advantage to having a structured settlement is that those deadlines no longer apply. You can set up the structured settlement annuity to pay out over a completely customizable length of time. You can set it up to pay out for a guaranteed number of years, or even for the rest of your life.
If you set up a 20-year payout arrangement, but pass away after 10 years, the beneficiary on the annuity (you spouse, child, etc.) could receive the remaining 10 years of payments. A typical workers’ comp settlement would not provide your spouse or heir with that option.
Structured Annuities Can Provide a Delayed Payout Schedule
Assume you’re working in heavy construction and suffer a workplace injury. Maybe you’re awarded permanent partial disability, but can continue to work. The injury will probably limit the number of years you’ll be able to continue working. In this situation, you may decide to structure your settlement annuity to begin paying out down the road, once you are no longer able to continue working. This arrangement would provide an important safety net.
A Structured Settlement Can Provide Tax-Free Growth
While a workers’ comp disability settlement doesn’t include a cost-of-living increase, the value of a structured settlement can actually increase over time. The growth in value in non-taxable, which can be another significant value for the injured worker. This provides even more tax-free money. The overall amount of funds could end up being more that the original settlement of the claim.
Kentucky Workers’ Compensation Pays for More than You Might Think
Most people understand their medical bills related to a workplace injury will be covered by workers’ comp. However, there are coverage for other expenses that can also be very important. For instance, having a wheelchair ramp installed and widening door frames to accommodate wheelchairs or other devices. Countertops may need to be lowered. Bathrooms may need to be remodeled. While Medicare won’t cover these modifications, you workers’ comp settlement will and an annuity could be part of this.
Medicare may begin fighting you on certain prescriptions, advance in-home care and other necessities. The need for additional support typically increases as we age. A structured settlement can be set up to ramp-up payments to cover these additional expenses, from the outset.
Avoid Losing Workers’ Comp Benefits After 15-Years
A workers’ compensation settlement for permanent partial disability reaches an important point after 15-years. At that time, it may cease, or you may have the option to petition the court for lifetime benefits. Unfortunately, if you’ve moved or other circumstances have occurred, you may not receive notice that your 15-year window is approaching. Not receiving this information could prevent you from receiving continued benefits. Using a structured settlement eliminates that potential risk.
Structured settlements often used in other types of personal injury claims, such as car wreck, motorcycle accidents, trucking collisions, and cases involving minors with significant injuries. Because Jeff handles those types of cases, he’s very familiar with using them and explaining the benefits to his clients.
Recognition for a Very Significant Case Involving a Structured Settlement
One of the reasons Jeff was invited to present at that University of Kentucky continuing legal education seminar had to do with a very significant case he handled.
A worker sustained catastrophic injuries on the job. The settlement negotiations involved such a large amount that Jeff worked directly with attorney for the insurance company, which was unusual. The attorney commented to Jeff that he was very impressed by Jeff’s working knowledge of the structured settlement options.
That same attorney asked Jeff to co-present with him at that UK seminar in April, 2026. Jeff has spoken at legal conferences many times. It’s a recognition of the reputation and skill he’s developed over the previous 33 years of practice.
This particular case was very complicated. The injuries were extremely serious and absolutely life-changing for his client.
Jeff was able to work out a structured settlements for the income benefits, the Medicare set-aside and the future medical benefits. It turned out to be the largest settlement, not just in workers’ comp, that Jeff has ever obtained, involving guaranteed payments, for a client. There’s a strong possibility the amount will double over the next 40+ years for his client.
In talking with the attorney for the largest workers’ compensation insurance company in Kentucky, that attorney believes this workers’ comp settlement is the largest that company has ever made. Additionally, that same attorney believes it may be the largest workers’ compensation settlements ever in Kentucky.
[Disclaimer: This is no guarantee of future results for other clients. Each case has its own unique facts.]
We hope you found this episode insightful and helpful.
Thank you for listening!
What Do Other Clients Think About Jeff?
We always encourage listeners to read the Google Reviews Jeff Roberts has received from many of his clients. A 5-Star rating and the comments are earned recognition and demonstrate Jeff’s commitment to his clients. As a solo attorney, he has more Google Reviews than some firms with multiple attorneys. Jeff shares the credit with his staff at the Roberts Law Office. Successfully representing injured clients is a team effort. It’s why Jeff likes to say his firm offers “Small Town Service with Big City Results.”
Jeff Roberts Represents Injured Clients Throughout Kentucky
With offices located in Calloway County (Murray) and now in Christian County (Hopkinsville), Jeff has a history of representing personal injury clients, workers’ compensation clients and social security disability clients across the state. He’s represented clients from Paducah, Bowling Green, Louisville, Covington, Whitesville and many other Kentucky locations. He’s not just a Western Kentucky injury attorney.
Is It Time to Speak with an Attorney about Your Workers’ Compensation Claim?
The office phone number is (270) 753-0053 or toll free at 800-844-5108. For more information, visit www.JeffRobertsLaw.com. This podcast is meant to provide information and is not legal advice. Jeff’s principal office is located at 509 Main Street, Murray, Kentucky. Co-host Jim Ray is a non-attorney spokesperson. This is an advertisement.
