Structured settlements are a common type of settlement option for car accident victims. Because these types of settlements are paid out over the course of time, you will want to carefully review your specific situation with an attorney, like a personal injury lawyer in Phoenix, to determine if a structured settlement is in your best interest. Although structured settlements can be the right option for many accident victims, you may choose to negotiate a lump sum depending upon your case.
What is a structured settlement?
When a car accident victim is able to prove the person who injured them is liable for damages, you may be offered a structured settlement. A structured settlement is when compensation from a lawsuit is paid out over a series of installments. Timeframes for installment payments can vary. In some cases, you may choose to receive payments monthly or even yearly. In some cases, settlement payments may be received over the course of an accident victim’s lifetime. An accident attorney can work to negotiate the terms of a victim’s structure settlement. Such terms can include:
- The length of time payments will be received
- Payment frequency
- Whether payments from a structured settlement will pass on to loved ones
An attorney can provide you with help in determining whether a structured settlement is right for you. In some cases, receiving a lump sum settlement can be more beneficial for those in need of immediate financial relief.
Should I accept a structured settlement?
If you receive a structured settlement offer, it will be important to review the offer with your accident attorney. In some cases, structured settlements can be an attractive option for the insurance company you are negotiating with. As a result, it may be possible to secure a higher settlement. In some cases, a structured settlement may be appropriate for an accident victim because it ensures that you will not spend the settlement too quickly.
What are the advantages to a structured settlement?
Structured settlement payments can be a viable option for many accident victims. They offer a number of advantages to those who have been harmed in an accident. Advantages can include:
- Providing victims with tax benefits
- Consistent and timely payments
- Settlements have the ability to offer a combination of both lump sum and structured settlement payments
- Can help in negotiating with insurance companies and may ultimately result in both parties reaching an agreement faster
How do I know my settlement offer is fair?
Regardless of whether you are pursuing a lump sum or structured settlement, you will need to know if the offer from the insurance company is fair. This is where an attorney can be critical to helping accident victims to weigh their options. No accident victim wants to walk away with a settlement offer that doesn’t help to recoup losses. An attorney can review, value and negotiate the claim so that you are able to retain the compensation you deserve.
Are you considering whether to pursue a structured settlement offer? If you have suffered a car accident, chances are you have withstood losses that have set you back considerably. A car accident attorney can help you to not only manage your case but to understand the difference between lump sum settlements and structured settlement offers. This can allow for you to make the best and most informed decision based on your situation.
Thanks to our friends and contributors from Rispoli Law PLLC for their insight into personal injury practice.