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Wondering how personal injury settlements are paid out? Personal injury settlements can be a bit tricky to navigate. Some people don’t know there is more than one way to receive a payment. Each way has its advantages, but some victims may prefer one option over the other. That’s why it is important to understand your options before coming to a settlement.
Were you or a loved one the victims of negligence or an accident? If you will be receiving compensation for it, take a few minutes to read about your options.
You can choose a lump sum settlement or a structured settlement. Either way, it’s tax-free.
Want to get your compensation immediately? A lump-sum settlement will mean you’ll receive a one-time payment based on the agreed-upon amount. With all the money at once, you have plenty of options.
Here are some of the things you can do with your lump sum.
Structured settlements offer several smaller payments made periodically. The start date and end date will determine the duration of payments, so pay close attention to those details. The payments typically begin with an initial lump sum meant to cover medical expenses and other debts. Then, smaller payments begin either monthly, quarterly, or annually (depending on the agreement).
There are cases where a lump sum payment doesn’t occur until the last payment. This is typically reserved for personal injury victims who are children.
Settlement payments typically occur when both parties involved in a personal injury case decide, avoiding trial. Once the settlement is agreed upon, the insurance company will pay compensation in either a lump sum or structured settlement.
Before choosing one option over the other, you should consult an attorney with experience helping victims get fair compensation.
After agreeing to a settlement, the at-fault party’s insurer will ask you to sign documents. One of the documents is meant to release the at-fault party and their insurance provider from any future claims regarding your personal injury case. Once all documents are signed, the insurance company will send the payment. The check is sent to your attorney, who will deposit it in a legal trust. The attorney will typically deduct their contingent fees from the fund.
While awaiting your money, your attorney should help negotiate any debt you may have incurred after suffering an injury. Medical bills and other debts will likely be stacked up before you receive payment. Your attorney should be able to negotiate a lower amount so you may keep more of your settlement money.
Finally, you should receive your settlement check in whatever form you chose. But first, you’ll need to take care of any legal fees, liens, and expenses associated with the case. You’ll also need to sign more paperwork. But with all that covered, you’ll get your settlement.
Worried about how long it will take to finally receive your settlement? The good news is, once your attorney receives the check, they’ll deposit it, and you should see it in about two or three business days. The only thing that can drag out this process is the insurance company. However, an experienced attorney will know how to inquire about what might be delaying it.
An insurance company will make settlement offers in cases of car accidents, commercial truck accidents, slips and falls, and more. Once you file a claim with the at-fault party’s provider, the first thing they will do is try to minimize the situation. You may receive a settlement offer quickly, but this is usually a lowball offer. The insurance company will always work to underpay as much as possible and will disguise a quick offer of money to get the claim resolved immediately.
Before agreeing to a settlement offer, always contact a personal injury attorney. They can help you fight for every cent you deserve.
Since every case is unique, there is no way to “average” the settlement amount. If you would like to know how much you could receive for your settlement, you should contact Shapiro Law Team. We can discuss your case and what you can expect. If we agree to take your case, we’ll ensure the insurance company doesn’t lowball you.
Despite there being no average settlement amount, several factors go into settlement amounts.
After suffering an injury, you might have plenty of questions but few answers. “How will I recover?” “When will payment arrive?” “Do I need an attorney for this?”
It’s perfectly normal not to know what to do. What you should know is that if you choose Shapiro Law Team for representation in your personal injury case, you have an experienced attorney at your back. We believe all victims deserve high-quality representation to get the best results possible. We have a long history of successfully helping victims recover fair compensation.
Our services are available 24/7; feel free to call or contact us online whenever you need us.
