Lump Sum Vs Structured Settlements in Personal Injury Cases
A personal injury lawsuit can drag out and take months, or even years. Once you receive judgment in your favor, there will be things that you will have to consider in terms of financial damages such as your hospital and associated bills that will need to be paid. If your personal injury lawyer got you a substantial amount of compensation, you will have to determine whether you want it all at once, or want to have it paid to you on a monthly basis.
How Lump Sum Payments Work
Lump sum payments basically give you the full amount that’s owed to you by your defendant in one fell swoop. The defendant’s insurance usually takes care of this, and they will more often than not take care of any pending bills such as hospital treatment costs. In addition, your personal injury attorney will deduct his costs, leaving you with a sizeable amount of money.
Many people that choose lump sum payments after the resolution of their personal injury cases do so because they have pending bills to take care of, or just want the psychological closure they have been waiting for for so long. In order to determine whether a lump sum payment will work for you, you’ll have to ask yourself a number of questions such as whether or not you’re financially savvy, taxation requirements, and if you foresee any financial responsibilities in the future.
All About Structured Settlements
Structured settlements give you access to your money in a form that is regular over a number of months or years. This might be a good choice for you if you’re worried about taxation (structured settlements are usually either tax-free or tax-subsidized), aren’t working or are not able to do so after your accident on account of a disability, need the financial peace of mind knowing that you’ll always be receiving a check every week or month from the insurance company, or want a flexible financial arrangement.
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The question of whether or not you should take one or the other shouldn’t be taken lightly. Once you’ve signed papers authorizing any of these types of payouts, you cannot have them annulled. As a result, you want to speak with a good personal injury lawyer who can look over your case and give you timely legal advice. Please give us a call today on 877-561-3004 to speak with one of our attorneys regarding this matter. Thanks, and we look forward to hearing from you.