When a careless driver causes an accident, their insurance should cover the victim's damages. If you are the victim and have been hurt in an auto accident, you may be entitled to be paid for not just medical expenses but pain and suffering and much more as well. The way the money comes to you can vary and knowing about the two primary forms of payment could be helpful. Read on and find out what victims need to know about lump-sum and structured settlements.
Settlements in General
When the other driver is at-fault, their insurer may offer you a settlement. You won't need to go to court to be paid a settlement. Settlements can happen soon after the accident and are the easiest way to be paid compensation for a wreck. It's all too easy for accident victims to fall prey to low offers and then they cannot undo the settlement. It's vital that victims consult with a personal injury lawyer to ensure they get paid what they deserve. Take look at the pros and cons of both lump-sum and structured settlements.
Lump-sum Settlements
As the name suggests, the entire agreed-upon settlement is paid in a single check. The obvious benefit of a lump-sum settlement is access to a (hopefully) large sum of money that can be used in any way you wish. You can even invest the funds and watch it grow interest. You might need money for medical expenses or other accident-related needs. Unfortunately, when the money is gone, it's gone. People who have poor control when it comes to financial matters might want to consider a structured settlement instead.
Structured Settlements
The way this type of settlement is set up is part of the negotiations. For example, in many cases, victims end up being paid higher total amounts with a structured payment as opposed to a lump-sum settlement. That is because the insurance carrier provides an incentive for a higher settlement to those who agree to a structured settlement. Structured settlements allow the insurer to stretch out their debt obligations over a long period of time rather than having to pay a large amount right away. Here are some other important considerations about structured settlements:
This decision depends on taking several factors into consideration. Speak to an auto accident lawyer like one at Schonberg Law Offices about your needs for the future before you decide.
Share9 September 2020
If you are injured in an accident, what is your first move? While getting medical care should be your first priority, the fact of the matter is that working with the right lawyer can be incredibly helpful in making it easier to prevent problems. For starters, your lawyer can talk with you about what to do in order to prevent problems with your paperwork, and he or she can chat with you about what to do when you start getting calls from other attorneys talking about the case. On this website, check out great tips and tricks you can use to prevent problems with your recovery from a financial perspective.
