Understanding Structured Settlements in Personal Injury Cases
- November 20, 2014
- Personal Injury
When it comes to personal injury claims, most of the time the situation is resolved by way of a settlement. The reason for this is due to the fact that it is quicker and less expensive than going to court. For the most part, these transactions are handled in one lump sum payment and the case is over. However, some plaintiffs may choose the option of the structured settlement. When you have a personal injury attorney in Dallas, they can help to advise you as to whether this is a good option for you and help you to weigh the benefits and disadvantages of a structured settlement plan.
The basic idea behind the option of a structured settlement is that instead of receiving the complete total of the settlement money at the time of the agreement, the plaintiff will receive the money in payments that are set on a schedule. The money is usually transferred from the defendant to an insurance company that will administer the payments and handle the funds.
Structured Settlements in Personal Injury Cases
There is a considerable amount of options that the plaintiff will have in regard to how the settlement is structured and the plaintiff will need to discuss some of these with their injury lawyer. Obviously, you will need to come to an agreement on the total value of the structured plan, but you will also need to consider things like the payment schedule and how much the individual payments will be worth. Along with that, you will also need to decide whether the structured plan will begin with one large lump sum to start the settlement process.
High Valued Settlements
The option of the structured settlement tends to be used more often for cases that have a particularly high financial value. Some people go for this option because it is a way to ensure that they will not spend all of the money. Most people that receive large settlements have little experience with handling the large sums of money that they will acquire and, all too often, they end up spending the money much faster than they should. With a structured settlement, they can help to guarantee that they will have their settlement checks as a supplemental form of income for the term of the agreement.
Lump Sum Payments
While there are some benefits to the structured settlement, in most situations a personal injury attorney will recommend a lump sum payment. The primary reason for this is that most injury settlements are not large enough for a structured settlement to provide any significant benefit. Along with that, if you manage a lump sum payment wisely, it can work for the individual just as well or better than a structured settlement.
At the end of the day, this is a decision that needs to be taken with care. How you receive your settlement will have a significant impact on your financial future. When you are trying to make this decision, the advice of an experienced personal injury lawyer can be helpful. They can help you to understand the economic factors behind the two options and they can help you to decide which will serve you better as an individual.