How Is a Personal Injury Settlement Paid Out?
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You might be wondering how a personal injury settlement is paid out if you have recently been involved in an accident or other situation where you might be receiving compensation for an injury. Compensation is usually paid out in a single lump sum or as monthly payments.
Whether you went to trial or not, you will need to know how your personal injury settlement is being paid to you. Before you reach a settlement, you probably need to discuss the options with a financial advisor or personal injury lawyer near you to ensure that you are getting the correct amount. This also gives you the opportunity to ask how the money will be given to you.
Many people prefer their personal injury settlements to be paid out in a lump sum because it allows them to spend the money to cover medical expenses or other bills they have incurred during the time they were injured.
It also allows you to better choose how you want to invest the money rather than waiting for a payment every month. This might make it easier to pay more bills at one time or to even pay back all your bills at the same time.
When people are given the choice of how they want their settlement received, many people choose to take the lump sum because it gives them more freedom with their money.
Sometimes your lawyer or financial advisor will recommend that you take a structured settlement. This could be more beneficial if you aren’t investing anything or are receiving a large sum of money. If you have money management issues or are concerned about spending the money too quickly you might want to consider getting a structured settlement.
This will give you regular long-term payments that you can use on a monthly basis to pay for bills, invest, or use as you see fit. It might also offer you more flexibility if you want to save money to make a big purchase or could use long-term payments to help you pay for much-needed things.
Depending on your financial needs, you can begin to take your payments immediately or you can delay them for a short time. You can also determine if you want life-long payments, or you can choose to specify and negotiate an end date.
You should also try to negotiate the payment frequency, distribution amounts, and death benefits. If you are having trouble finding the best terms and conditions, your personal injury lawyer can help.
Partnering with a lawyer can help you to know all your options and the best terms that might meet your needs and financial goals.
Now that you know how a personal injury settlement is paid out, you can start taking steps toward getting your compensation.
Get in touch with Craig Swapp & Associates by calling us at 1-800-404-9000. You can also fill out the contact form below.