How Personal Injury Settlements Are Paid Out
Posted on Saturday, October 15th, 2022 at 3:38 pm
Nobody is ever prepared to suffer an injury in an accident. The sudden and persistent pain can be intense and even debilitating. But what surprises many people the most after being injured is often the financial cost of the accident. Suddenly, you are facing a mounting pile of medical bills in addition to being unable to earn wages because your injuries prevent you from working. In just an instant, your life has become more stressful and overwhelming than ever imagined.
When another negligent party caused your injuries, you should not be on the hook for the resulting expenses. Filing a personal injury claim is a way to seek justice by recovering the compensation you deserve for your losses. However, the claims process can feel confusing for people who are unfamiliar with it. The one thing you might be most eager to know is how your settlement will be paid out.
Consulting with a personal injury attorney is the most effective way to find out what to expect in your unique case. Nevertheless, you may find it clarifying to learn how the process works in general terms.
Forms a Personal Injury Settlement Can Take
The terms of your settlement will depend on the agreement you reached at the end of negotiations with the defendant and their insurance company. The agreement usually offers two options: a single lump-sum payment or a series of structured payments over time.
In most cases, the parties agree that the injured individual will receive a one-time payment. This lump-sum settlement will bring the plaintiff’s claim to an end.
In some cases, however, the negotiations result in an agreement to schedule a series of structured payments over several months or years. These types of arrangements are most common in cases of severe injury or debilitation and when the injured party needs long-term medical care.
Sometimes, you can choose which of these types of payouts you would like to receive. In such cases, your personal injury lawyer will assess which option will benefit you the most.
Advantages and Disadvantages of Lump-Sum Payments
A one-time payment for a personal injury claim has pros and cons.
The pros include the knowledge that you will have access to the entirety of the funds right away. This will allow you to spend or invest the money in whatever way you like and whenever you want. If you have any major expenses you need to take care of, you can use the funds from the lump-sum payment to pay for them as soon as you need to.
The cons include that you might be at a higher risk of losing the money through poor investments. Furthermore, those who suddenly come into a significant amount of money often feel pressured to give it to those who ask for money.
Advantages and Disadvantages of Structured Settlements
There are a few pros and cons to consider when it comes to structured settlements.
The pros include guaranteeing you will receive money to cover your expenses well into the future. You will have the ongoing financial support you require when you need it. And because you are receiving smaller payments each time, you might feel less pressure to give your money away.
The cons include that you might not be able to handle any significant expenses that suddenly come up.
How the Settlement Is Dispersed
The insurance company will make the check out to your attorney. At this point, your lawyer will try to negotiate any debts you have from your medical treatment or other injury-related expenses to reduce the amount you owe. They will also take out their costs and legal fees. You will then receive the remainder of the payout.
Contact an Experienced Personal Injury Attorney
If you have been injured in an accident, you deserve compensation for your losses. The experienced Cincinnati personal injury attorneys of Lawrence & Associates Accident and Injury Lawyers, LLC will do the necessary work to help you recover the full and fair compensation you deserve. Our attorneys have developed a reputation for excellence across Ohio and Kentucky, and we are committed to making the personal injury claim process as effective and swift as possible.
Call us today at (513) 351-5997 or contact us online for a free case evaluation, and we will discuss your legal options.