You’ve suffered injuries in a car crash, and now, you’re pursuing monetary damages to cover the losses resulting from the accident. Sadly, you’re not the only person to experience this.
Research shows that United States traffic injuries reached more than 2.7 million in 2019. This followed 20 years of a decrease in the number of car accident–related injuries taking place nationwide.
Fortunately, if you are successful in your claim, you may receive settlement that will help you to cover your accident-related expenses. But did you know that such settlements can take different forms?
Here’s a rundown on the different types of settlement options available to those who win lawsuits.
Let’s jump in!
Structured Settlement
Structured settlements are where defendants agree to pay plaintiffs several payments over time. These payments are known as annuity plans.
Annuity plans might continue for multiple years or for the remainder of the recipients’ lives. The specific arrangement of such a settlement, such as the payment amount and how frequently it will occur, will differ from one case to another.
Note that in some cases, structured settlement payments increase to keep pace with current inflation. Meanwhile, other payments decrease as time goes on. This is particularly true if the recipient’s medical bills are expected to decrease over time, for example.
A chief disadvantage of this type of settlement structure is that you will have to wait years to recover all of your monetary damages. Also, during this time, the party paying the settlement may become bankrupt before you receive all of your funds.
However, a structured settlement can be beneficial, too. That’s because you will be less inclined to spend all of your earnings on frivolous items when you receive the funds.
Lump Sum Settlement
Lump sum settlements are the most common types of settlements. They can result from legal cases involving personal injury or medical malpractice, for example.
With this type of payment structure, you would receive a sum of cash all at once. As a result, you won’t have to worry about waiting to get all of the money you’re entitled to. However, this settlement structure can be burdensome for the paying party.
Your attorney can ultimately work with you on ironing out your settlement structure’s details. They’ll do this based on what is in your best interests long term.
Explore Your Options for Settlements with Confidence Today
If you litigate your personal injury claim successfully, you can expect to receive a settlement that may help you to cover your hospital bills and even your ongoing medical expenses. Likewise, your settlement can help you to cover any loss of wages resulting from your collision.
However, it is important that you choose the most appropriate settlement option for your unique situation. Consider the above-listed types of settlements as you seek the best settlement structure following your injury accident this year.
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