When the negligent party or their insurer agrees to cover your damages through a settlement, accident victims often think the process is finished. There’s actually another important consideration at this point, however—how exactly do you want to receive your compensation?
What Even Is a Structured Settlement?
Accident victims may take what’s known as a “lump sum” settlement from the at-fault party. In other words, the full amount of any damages owed to you typically arrive as one single payment. The full value of your damages covering medical bills, lost wages, and so on is paid out in one sum instead of broken up and dispersed over time.
A structured settlement is the opposite of that payout schedule. Instead, a portion of the settlement is provided to you either annually or monthly until the full amount is exhausted.
What Are the Benefits and Potential Drawbacks of a Structured Settlement?
Regular payouts through a structured settlement may not be the best option if you need a large amount right now to cover medical bills or missed mortgage payments. In many other cases, however, a structured settlement has a number of clear benefits, such as:
- Avoiding the temptation to spend large amounts all at once, which may be a bad move if you end up needing additional treatment or therapies in the future.
- Coming with potential tax benefits, depending on the circumstances of the case and how you are utilizing the settlement.
- Offering a steady stream of funds much like a normal paycheck. That means you are taken care of even if you can’t work or have a sudden health or financial change.
Talk to an Attorney About Pursuing Injury Compensation Today
Are you expecting a settlement soon or do you need to start the process of filing a lawsuit against a negligent driver who caused you injury? Talk with a qualified attorney to find out the best options for your unique situation. Reach out to the Heslin Law Firm to schedule a consultation by calling the office directly at 215-332-0300 or contact us online here instead.