How Texas Law Calculates Lifetime Income Benefits
A serious workplace injury does more than affect someone physically. It can upend daily life, disrupt family routines, and create financial stress that lingers long after the initial accident. Many injured workers quickly realize that returning to their old job may no longer be possible. Texas law recognizes this reality and provides certain benefits designed to protect workers who suffer the most severe injuries. These are called Lifetime Income Benefits, often referred to as LIBs.
Unlike temporary or partial benefits, which eventually end, LIBs are structured to provide financial security for the rest of a worker’s life. The idea is straightforward. If a person’s injury is so catastrophic that they cannot reasonably return to meaningful employment, the law ensures that they will not be left without income. This can be the difference between stability and financial hardship.
If you believe you or a loved one might qualify, it is wise to speak with an attorney who understands how these benefits are awarded and calculated. At S. McCorquodale P.C., we provide free consultations and guide clients through the process of securing the benefits they are entitled to under Texas law.
Who Qualifies for Lifetime Income Benefits
Texas law does not make LIBs available to every injured worker. Instead, the law outlines a very specific set of circumstances that qualify. These rules are found in the Texas Labor Code and include only the most severe injuries.
A worker may qualify if they have completely lost sight in both eyes, lost both hands at or above the wrist, or lost both feet at or above the ankle. Permanent paralysis of both arms, both legs, or one arm and one leg is another qualifying condition. Workers who suffer a traumatic brain injury so severe that it leaves them in a near vegetative state are also eligible. Additionally, third degree burns that cover a large portion of the body and result in significant physical impairment can qualify.
These examples illustrate how narrow the eligibility is. LIBs are not intended for injuries that heal over time, even if those injuries are painful and disruptive. They are reserved for catastrophic conditions that permanently change a person’s ability to live and work as they once did. For families, this distinction is important. If the injury meets one of these conditions, the worker may have access to benefits that last a lifetime, rather than benefits that run out after a certain number of weeks.
How the Benefits Are Calculated in Texas
The method of calculating LIBs is relatively simple in theory but often contested in practice. Under Texas law, the payment is set at seventy five percent of the injured worker’s average weekly wage. This amount is then increased by three percent every year to account for rising costs of living.
The average weekly wage is the foundation of the calculation. For many workers, this is based on their earnings in the year prior to the injury. For others, especially those who worked irregular hours or seasonal jobs, the calculation may be more complex. Employers and insurance carriers sometimes disagree on what the true weekly wage should be, which can lead to disputes that delay payment.
Texas also sets a maximum and minimum benefit rate each year through the Department of Insurance. This means that workers who earned high wages before the injury may see their benefits capped below their actual income, while lower wage workers are guaranteed at least a baseline amount. These statewide limits can have a significant effect on the final payout.
The annual three percent increase is another critical piece. Unlike other types of benefits that remain static, LIBs are designed to rise gradually to keep pace with inflation. Over time, this adjustment helps protect the worker’s purchasing power and provides more stability for long term financial planning.
Challenges Workers Face When Applying for LIBs
While the law is clear about who qualifies and how payments are calculated, the reality is that workers often face significant obstacles when pursuing LIBs. Insurance companies frequently challenge claims, arguing that the injury does not meet the legal requirements. They may also dispute the calculation of the average weekly wage or delay payments with endless requests for additional documentation.
For an injured worker and their family, these disputes can be frustrating and exhausting. The process requires gathering detailed medical records, expert opinions, and sometimes testimony from specialists who can explain the severity of the condition. Many families find that even when the injury clearly qualifies, securing benefits can take months or even years if the insurance carrier resists.
This is where legal representation becomes essential. An experienced workers compensation lawyer understands the tactics used by insurance companies and can push back effectively. By presenting clear evidence and challenging improper denials, a lawyer can help ensure that benefits are awarded fairly and that payments begin without unnecessary delay.
Protecting Your Future with the Right Legal Guidance
Lifetime Income Benefits are among the most valuable protections available under Texas workers compensation law. They provide financial stability for individuals who have suffered the most devastating injuries, but they are also among the most contested benefits. Navigating the process alone can feel overwhelming, especially when an insurance company is pushing back at every step.
At S. McCorquodale P.C., we believe no worker should have to fight for benefits they are legally entitled to. Our team stands up for injured Texans, making sure that calculations are correct, increases are applied each year, and insurance companies are held accountable when they try to avoid their obligations.
If you or someone you love may qualify for Lifetime Income Benefits, do not wait to seek help. Contact S. McCorquodale P.C. today for a free legal consultation. We are ready to explain your rights, guide you through the process, and fight to secure the lifetime support you deserve.