People who have been involved in an accident that wasn’t their fault often ask: How much money will I get for my personal injury settlement? This is a genuine concern, bearing in mind that the person has been injured and is possibly under serious financial stress. Furthermore, they are in that situation because of someone else’s mistake, and working with experienced personal injury lawyers can help you get fair compensation for your situation.
So, it’s only fair that the person is compensated sizably so that they can take care of their medical bills and other personal expenses. However, several important factors will determine how much you will get for your personal injury settlement and how the money will be paid out. Continue reading to know how personal injury settlements are paid out.
What Is A Personal Injury Settlement?
A personal injury settlement is the compensation awarded to you when you get injured in an accident due to someone else’s negligence, gross carelessness, reckless conduct, or intentional misconduct. This settlement is in the form of money, which you can use to cover your medical bills, lost income, and the pain and suffering you’ve suffered because of the injuries.
There are two easy ways to secure personal injury compensation: You can either file a civil lawsuit and obtain a court verdict. Or you can have a discussion with the person, entity, or organization responsible for your injuries to negotiate an out-of-court settlement. Sometimes you will have to deal with the at-fault party’s insurer for a personal injury settlement.
How Is A Personal Injury Settlement Paid Out?
A personal injury settlement can be paid out as a lump sum or as a structured payment where you will receive a series of smaller payments periodically. A structured payment can be set up in whatever way is most helpful for meeting your individual needs such as lost monthly income and medical expenses, but once the structure of payments has been agreed upon, you cannot change the terms.
Since most personal injury cases don’t make it to court because the plaintiff and defendant agree to settle the matter out of court, you need a lawyer to represent your interests and help you to negotiate for compensation. Also, make sure that before you settle for a structured payment, you’ve discussed the payout options and all other aspects of the contract with the at-fault party in the presence of an attorney.
Lump-Sum Personal Injury Settlement
Before you agree to either a lump-sum payout or a structured payment, make sure you understand the difference between the two and how each method will affect your life and financial objectives.
Benefits Of A Lump-Sum Personal Injury Settlement
First of all, a lump-sum payout gives you liquidity and an opportunity to choose how to invest the money. It also helps you to take care of any emergency financial needs that could have occurred due to the injury. For example, a lump-sum payout will help you to clear any debts you may have acquired after the accident. Also, if you were struggling with debt before the accident, it may help you to pay off some of that debt as well. This might enable you to lower your current cost of living.
Advantages Of A Structured Personal Injury Settlement
Although a structured payout doesn’t give you the entire settlement amount at once, it offers you the flexibility to take care of your financial needs over an extended period of time. This means that you could continue to receive the amount of your monthly wages even after sustaining serious injuries that won’t allow you to work.
With a structured payout, you will also be able to continue paying for your routine medical care, especially if the injuries require you to keep going for therapy and routine checkups. Therefore, a structured payout guarantees you financial security by giving you long-term payments. Regardless of the payout method you choose for your personal injury settlements, make sure you have an attorney to guide you through the process.