Structured Settlements In Personal Injury Cases
If you suffered serious injuries in a Florida accident because of someone else’s negligence, it is your legal right to pursue compensation from the negligent party or their insurance company. You can work with an attorney to either settle your case outside court or through a trial. An experienced personal injury attorney should advise you accordingly and help you pursue the option that best suits your case.
If you and your personal injury attorney decide to settle your case outside court, one settlement offer you might find yourself considering or being offered is a structured settlement. Read on to find out what exactly a structured settlement is and if you should consider accepting or asking for such a settlement.
What Is a Structured Settlement?
Often, plaintiffs receive their compensation all at once. However, paying out compensation in a lump sum is not the only way for a defendant or their insurance company to pay a plaintiff.
A structured settlement is a type of settlement that allows a defendant or their insurance company to make periodic payments to a plaintiff. As a plaintiff, if you accept such a settlement, you might end up receiving periodic payments over some months, years, or for the rest of your life.
Structured settlements are rare in Florida personal injury cases. However, such a settlement can be of great help in some situations. Suppose an individual needs long-term security, but they cannot invest the money they obtain from their personal injury claim themselves or cannot find a competent person to help. In such a case, they may request a structured settlement and find it useful.
If you sustain a permanent injury in an accident because of someone else’s negligence and then decide to settle your case outside court, the chances are, the insurance company or defendant will make the structured settlement offer. In a situation where a person suffers a permanent injury, damages can amount to even millions. Paying such substantial amounts of money all at once can be challenging. Therefore, in an effort to save some money upfront, insurance companies and defendants offer plaintiffs periodic payments.
Should You Ask for or Accept a Structured Settlement?
Whether or not you should accept or ask for a structured settlement depends on the specifics of your case. Therefore, it would be best to consult a personal injury attorney to determine the right thing to do.
However, it might help if you recognize that all settlements have both pros and cons. For instance, one advantage of a lump-sum settlement is that you can meet immediate and unexpected needs. On the downside, with a lump sum payout, you might end up spending the money too fast. On the other hand, a structured settlement can offer tax benefits. However, with a structured settlement, you might not be able to meet immediate and unexpected needs.
Contact Us for Legal Help
Even after considering the pros and cons of lump sum and structured settlements, you need an attorney to help you make a good decision. Our Miami personal injury attorneys at the Pendas Law Firm can assess your case and advise you accordingly. If settling your case is not in your best interests, our team of experts will skillfully take your case to trial, as we always strive to do what is best for our clients. Contact us today for legal assistance.
The Pendas Law Firm also represents clients in the Orlando, Tampa, Jacksonville, Daytona Beach, West Palm Beach, Fort Myers, Ocala, Fort Lauderdale, and Bradenton areas.