How Are Personal Injury Settlements Paid Out?
Personal injury claims can help people who were injured through no fault of their own. Money from a claim can pay for medical bills, compensate for lost wages due to missed time at work, and other accident-related losses incurred because of another party’s negligent behavior. However, many people who file claims are eager to know how personal injury settlements will be paid. Consulting with an experienced personal injury attorney can help you understand what to expect in your case. You may find it empowering to have a general idea of how the process works.
Forms Personal Injury Settlements Can Take
Because your settlement will emerge from an agreement between you, your attorney, the defendant, and their insurance company, the precise form your payment takes will depend on the content of that agreement. People who file personal injury cases may have two options: a single lump-sum payment or several structured payments over a more extended period.
Most personal injury claims end with an agreement that the plaintiff will receive a lump-sum payment. This one-time payment will finish the personal injury claim.
Sometimes, however, the parties agree to resolve the case with a schedule of structured payments over several months or even years. Structured payments are more common in cases where the injuries or disabilities are so severe that the plaintiff requires long-term medical care.
If you have the option to choose between these two forms of payment in your case, your personal injury lawyer will help you understand which option will work most in your favor.
Lump-Sum Payments: Advantages and Disadvantages
There are pros and cons to receiving a lump-sum payment.
The pros include that you will have access to all your money right away, and you can spend or invest it however and whenever you like. Furthermore, if any sudden significant expenses come up, you can pay for them out of pocket.
The cons are that you may be at a higher risk of losing your money if you make poor investments, and you won’t have another chance to receive compensation for your losses. If you don’t immediately pay the medical bills associated with your injuries with your settlement money, you could be left with unpaid bills and no money to pay them. Additionally, many people who win a large settlement often feel pressured to give money away to those around them.
Structured Settlements: Advantages and Disadvantages
As is the case with lump-sum payments, structured settlements also have pros and cons.
The pros include that you are guaranteed to receive money to pay for your expenses over a long period. The ongoing financial support you require will be there when you need it if you opt for a structured settlement. You may also receive less pressure to give away your money.
The main downside of structured payments is that you may find it challenging to deal with any large, unexpected expenses that come up because you will not be able to access all your funds at any given time.
How the Settlement Is Dispersed
When the insurance company writes the check for your payout, they will make it out to your attorney, who will first pay any liens for debts you may have from medical treatment or other injury-related expenses. They will also take out the money for any costs they may have paid during the pendency of your case. They will then take an agreed-upon percentage of your settlement for their legal fees. Once these debts are paid, you will receive the remainder of the money.
Contact a Personal Injury Attorney From Hankey Law Office in Indianapolis
Being injured in an accident can create a massive amount of unexpected stress in your life. The intense pain from the injury itself can seem more than enough on its own, but it is often just the story’s beginning. You may also be facing many costly medical bills due to the accident. Paying them can feel impossible, especially if you have been left with a temporary or permanent disability that prevents you from earning the wages you need to take care of the necessities in life.
If you were injured in an accident, you deserve to receive compensation for your losses. The experienced personal injury attorneys at Hankey Law Office in Indianapolis are ready to do the necessary work to help you receive the full and fair compensation you deserve. While the process may seem complicated or challenging, our lawyers aim to make everything as simple, straightforward, and swift as possible.