Suffering injuries in an accident, be it a car accident or a motorcycle accident, can fill you with a sense of stress and confusion. If the accident happened due to another party’s negligence, you need compensation for everything you have lost. A personal injury claim can allow you to recover accident-related medical expenses, lost wages due to missed time at work, and property damage costs. You can also seek compensation for the pain and suffering your injuries have caused you. But how and when will you receive money if you negotiate a settlement?
While an injury claim can help you find the justice you deserve, the process can be perplexing and add to your stress. Many people feel most anxious about how and when they will receive their settlement. Understanding how payouts work can help you feel prepared for what lies ahead of you.
What Forms Do Personal Injury Settlements Take?
When your attorney takes on your case, they will work to seek the maximum possible compensation from the at-fault party’s insurer. When they reach a favorable agreement, your lawyer will also negotiate what form your payout will take. Most commonly, personal injury settlements take the form of either a lump-sum payment or a series of smaller, structured payments over a longer period of time.
Most personal injury settlements take the form of lump-sum payments. Receiving this type of payout will bring your injury claim to an end, and you won’t be able to pursue further compensation. However, some agreements call for a series of smaller payments over the course of several months or years. This arrangement often applies to cases where the injured person has been disabled and requires long-term medical attention and care.
You may have the option to choose between these two types of agreements. In such a case, a knowledgeable personal injury attorney can advise you about which option best suits your needs.
What Are the Advantages and Disadvantages of Lump-Sum Payments?
Lump-sum payments can offer a life-changing amount of money for an injured person. Access to all your compensation can allow you to pay off your debts immediately. You may also have the chance to seek treatment that your health insurance might not cover, pay for any specialized medical equipment you might need, or take care of any major expenses that may arise unexpectedly. You can use the rest of your settlement to cover other losses, such as lost wages.
Receiving your payout all at once has its disadvantages, too. Sometimes people lose much of their personal injury settlement money through risky or unwise investments. Others feel pressured to give much of it away to those around them. Either of these circumstances can prevent you from using your funds to address your accident-related losses.
What Are the Advantages and Disadvantages of Structured Settlements?
Structured payouts have their own rewards and risks. One advantage of receiving a structured settlement is that it can offer you a sense of security. Knowing that you will receive a specific amount of money each month for an extended period of time can put your mind at ease. This regular income will allow you to take care of ongoing expenses well into the future. And because you will only receive a small amount of your payout each month, you will probably feel less pressure to spend it unwisely.
One downside to structured settlements is that they do not allow you to pay for sudden large expenses. This can be challenging when you have many debts all from the accident.
How Will the Insurance Company Disburse My Settlement?
The insurance company will write a check to your attorney rather than to you directly. This arrangement will allow your lawyer to pay for any liens on your settlement due to medical bills or other debts. A skilled attorney can often negotiate the amount of your debt with the other party’s insurer, allowing you to take more of your payout home. Your lawyer will then deduct their legal fees from what remains. Once they have done this, they will send you a check for the remaining amount.
Contact The Yates Firm Today
The skilled and knowledgeable personal injury attorneys at The Yates Firm dedicate themselves to protecting the rights and interests of injured individuals. Our legal team will fight for the compensation you deserve, and we will handle your case as effectively and swiftly as possible. Call us today at 843.692.3237 or contact us online for a free consultation to learn more about how we can help you.