How are personal injury settlements paid out? Personal injury settlements are paid out as a lump sum or a structured installment over a set period.
Your personal injury lawyer in Charlottesville can help you weigh the pros and cons of each of these options relative to your settlement.
How a Personal Injury Settlement Can Be Paid Out as a Lump Sum
A lump sum is a popular choice for having a personal injury settlement paid out. With this, you may receive a settlement as a single check, which will likely arrive weeks after you reach an agreement with a liable party or their insurer. Once you cash this check, your case is closed, and you can use your money however you decide.
Talk with a personal injury attorney about verdicts and settlements, and what it will take for you to be compensated in your case. Your lawyer may work tirelessly to secure compensation for you. If your case is successful and you want the money from it all at once, your attorney may advise you to accept a lump-sum payment.
At MartinWren, P.C., we know how personal injury settlements are paid out in auto accident cases and many others. Our attorneys are also familiar with the types of damages in personal injury cases and what it takes to get our clients the results that they want. Let us represent and advocate for you in your personal injury case. Contact us today.
For a legal consultation with a personal injury lawyer, call (434) 817-3100
Benefits of Having a Personal Injury Settlement Paid Out as a Lump Sum
If you decide to have your personal injury settlement paid to you as a lump sum, you will get one payment. You have complete financial control over your settlement. On top of that, your settlement may help you close a difficult chapter in your life as you try to move past your personal injury case.
Aside from these, your lump-sum payment may be protected against inflation. You may decide to use the money you receive on various investments. If you make wise investments with the funds you get from your settlement, you may reap the benefits of significant returns that may not be available down the line.
Before you receive a personal injury settlement and determine how to have it paid out, you will have to file a claim or lawsuit in alignment with Virginia law.
According to Virginia Code § 8.01-243, you may have two years to seek compensation from anyone who injures you. A personal injury attorney can help you pursue compensation and get a settlement without delay.
When a Personal Injury Settlement Is Paid Out Across Several Years
The circumstances of a case can dictate whether a personal injury settlement will be paid out periodically. Sometimes, in a high-value case, a plaintiff may choose to receive monthly or annual settlement payments in lieu of a lump sum.
Or, if ongoing medical care is necessary, a structured settlement could be used to ensure the plaintiff is covered financially for it.
Discuss the damages that you can seek for injuries with personal injury attorneys. Ideally, your lawyer can help you submit your compensation request and get you money for your quantifiable and subjective losses. They may also encourage you to consider a structured settlement.
Your structured settlement may include both economic and non-economic damages, such as compensation for your medical bills, lost wages, and pain and suffering.
It may help you stay afloat financially, as you can receive payments for months or years. As a result, your settlement may provide you with a financial lifeline if you ever encounter economic struggles.
A Closer Look at the Benefits of Receiving a Structured Personal Injury Settlement
Think about your long-term financial future as you assess how personal injury settlements can be paid out. A structured settlement may secure your financial future for an extended period. It can give you peace of mind knowing that money is coming to you at regular intervals.
Account for the tax implications of your settlement or judgment, particularly as you decide whether to move forward with a structured settlement. Your structured settlement, including any interest earned on it, may be tax-free. By comparison, if you receive a lump-sum payment, any investment earnings on it may be taxable.
Structured settlements may be beneficial for those who are worried about overspending. Additionally, you can structure your settlement payments in a way that works well for you. You can even set up your structured settlement so that a beneficiary will continue to receive payments if you pass away.
How to Decide Between Personal Injury Settlement Payout Options
Resist the urge to make a quick decision regarding how you will have your personal injury settlement paid out. Evaluate your finances now and in the future, and the money that you will need to cover your everyday expenses and other costs.
Remember, there are advantages and disadvantages to lump-sum payments and structured settlements. A lump sum provides you with access to the full amount of your settlement, albeit with the possibility of tax ramifications.
Meanwhile, a structured settlement ensures you’ll receive money over a designated period, but you’ll have to wait for the full amount.
You may want to think about payout options if you’re in the middle of negotiating a personal injury settlement. That way, if you approve a settlement offer, you can decide immediately on a payout option. From here, you can resolve your personal injury case and start using the money you receive from a liable party or their insurer for the losses that you’ve incurred.
Click to contact personal injury lawyers today
Our Personal Injury Lawyers Can Help You Get a Personal Injury Settlement That Matches Your Expectations
The team at MartinWren, P.C., can teach you about the different options for having a personal injury settlement paid out.
If you want to file a personal injury claim or lawsuit or are interested in getting help with your settlement negotiations, we’re here for you. To find out more, request a case consultation.
Call (434) 817-3100 or complete a Case Evaluation form