Accidents can be unsettling since the victim might need some time off to tend to their injuries. They also have to contend with the huge medical bills, which can affect their finances. Hiring an auto accident injury lawyer helps one file a strong case to gain compensation for their injuries. The settlement amount will help the accident victim get back on their feet.
How are personal injury settlements paid? It depends on the agreement when settling the case.
Methods Of Paying Personal Injury Settlements
There are two main ways that insurance companies dispense personal injury compensation. They include a structured settlement plan and lump sum payment. The two methods are discussed at length below.
Lump Sum Payment
The compensation comes in a single installment and is common for cases settled out of court. Total sums can be substantial, meaning it is ideal for victims that wish to invest the money.
A common challenge with the payment type is financial mismanagement by most victims. They need some solid financial management abilities and discipline, so they don’t end up broke.
Structured Settlement Plan
Compensation is paid in several installments over time. Victims receive the installments at pre-agreed intervals for a specific amount of time. Such agreements often encompass some monetary adjustment to factor in inflation.
Structured settlement plans are beneficial for victims undergoing extensive medical treatment. The amount can help settle medical bills throughout their treatment. They also work well for victims with poor money management skills, as receiving the compensation in increments ensures they don’t mismanage it.
One cannot modify the structured settlements once they are agreed upon. Individuals will be asked to do due diligence and identify favorable terms.
Steps Involved in the Settlement Process
To better understand how one receives their compensation, it’s vital to know about the settlement process. Here is an outline of the steps involved:
Attorney Tries Negotiating Some of the Bills
Within the course of the personal injury court case, victims tend to accumulate a lot of debt. The lawyer’s first duty is to try settling all of them before the money gets to the plaintiff.
Experts negotiate favorable terms to prevent the debts from taking up all of the victim’s settlement. They negotiate with healthcare providers for a discounted rate on past-due medical bills.
The lawyer may also deduct their legal fees and costs as per the previous agreement. Normally, legal fees on a contingency basis charge a specific percentage of the compensation.
Signing the Release
Agreeing to the injury settlement amount signals the end of a case, which means it’s time to sign the paperwork. One of the most important documents a victim will sign at this stage is the release.
Signing the release confirms that the settlement is agreed upon and that the victim won’t get any more compensation. It releases the insurance company and at-fault party from future liability. Signing the release with a reasonable amount of time ensures the settlement process can move along swiftly.
Check Issuance by the Insurance Company
After signing the release, the at-fault insurer writes the victim a settlement check. The check is sent to the attorney and law firm to safeguard it.
Attorney Deposits the Check
The settlement check with the victim’s legal team must remain there until the bank clears the funds. Lawyers deposit the amount into a legal trust fund, so ensure you work with a trustworthy one.
Victim Gets the Settlement Balance
After paying all outstanding debt, the attorney should offer the victim the remaining amount. Lawyers may mail a check to maintain records. The victim is free to deposit the check into the account and bank of choice and use the money as per will.
Hire An Auto Accident Injury Lawyer
A generous compensation helps ease the woes that one experiences after an accident. Launching a personal injury case with the help of an auto accident injury lawyer is the sure way to get compensation. These lawyers offer professional support every step of the way to ensure the settlement reaches the victim.