Sometimes an employee suffers an injury that is so significant that he is medically unable to work for the rest of his life. In those cases, the employee may be entitled to lifetime paychecks, or compensation referred to as Permanent and Total Disability.

The worker and the employer may reach an agreement under which the employer pays a lump-sum settlement. In other words, the case settles by the employer making one large payment instead of many small ones over the employee’s lifetime.