Understanding How Personal Injury Settlements Are Paid Out
In most cases, your personal injury case will conclude with a settlement rather than going to trial and reaching a verdict. If your personal injury case is settled, you will be eligible to recover compensation for the injuries and losses you have suffered due to the liable party’s negligence.
Once your case has been settled, your due compensation can be paid out in several ways depending on the specific facts of your personal injury claim. The payment structures that most personal injury cases fit into are as follows:
Lump Sum Settlement
A lump sum payment is one payment structure you can select when your claim is settled. This payment structure is the most straightforward method of settling a personal injury claim. With this payment structure, you would receive the full amount of the agreed-upon compensation in a single, one-time payment. A lump sum settlement can be beneficial as it allows you to have immediate access to all of the available funds. In cases where urgent medical bills or living expenses need to be covered, a lump sum payment may be preferable.
It should be noted that lump sum payments are not always the best option. This is because recipients may struggle with managing such a large sum of money. Your personal injury lawyer can help you understand whether or not this payment structure would be a good option for you and your needs.
Structured Settlement
Structured payments are an alternative payment structure for those who may feel that a lump sum payment is not the right fit for them. Instead of receiving the entire compensatory amount in a one-time, lump-sum payment, the injured party will receive several smaller payments over a predetermined period of time. These payments can be scheduled in various ways, including the following:
- Monthly
- Quarterly
- Annually
These payments can even be tailored to accommodate the specific financial needs of victims after they have suffered serious losses from their injuries. Additionally, these payments can be structured to meet certain milestones in a person’s life, like future medical needs or college tuition. Structured payments can act as a steady source of income, helping you maintain your quality of life even if you are unable to work due to the injuries you suffered at the hands of the liable party.
Learn More About Personal Injury Payment Structures From Hollis Law Firm
At Hollis Law Firm, we believe in holding negligent parties responsible for their actions and helping our clients pursue fair compensation for their losses and injuries. We can help you understand what payment structure will work best for you as you pursue your injury claim.
We guide our clients through the personal injury process and provide them with trusted legal counsel every step of the way. Contact our personal injury team today at (800) 701-3672 to discuss your claim. You can also complete our contact form.
