There are three common ways to receive a personal injury settlement in Louisiana. The first is a lump sum settlement, where the full amount is paid at once. The second is a structured settlement, where payments are made periodically over an agreed-upon period. The third is a hybrid settlement, which combines a large upfront payment with additional scheduled payments.
When negotiating a settlement deal, it’s essential to choose the option that best suits your circumstances. An experienced Baton Rouge personal injury lawyer can explain all three options, helping you make the decision that’s right for you and your family.
Choosing How to Receive Payment in a Personal Injury Case
The method used to pay a personal injury claim can significantly affect your financial future. It’s important to understand how each option might impact your situation as you work to move on from your accident.
Lump Sum Payment
With a lump sum payment, you will receive the entire amount at once. This option can be crucial if you face significant immediate expenses. For example, if you were seriously injured and have incurred significant medical expenses, a lump sum payment can help cover your bills and ease any immediate financial strain.
However, the amount you receive through a lump sum payment will likely be significantly less than you would recover through a structured settlement.
Structured Settlement
A structured settlement involves receiving regular payments over time, which can be customized to fit the agreement’s terms. Depending on the settlement deal, payments may be made monthly, quarterly, bi-annually, or annually.
If you are not facing urgent expenses but are more concerned about your long-term financial health, a structured settlement might be a better option. It provides a steady flow of funds and could even offer tax advantages.
Hybrid Settlement
A hybrid settlement can be your best option if you are dealing with some significant immediate costs but don’t need your full settlement to cover them.
With a hybrid settlement, you will receive a larger payment upfront, as you would with a lump sum payment. However, this amount will not account for the entirety of your settlement.
As with a structured settlement, the rest of your settlement will be paid out over time. However, the payments will be smaller or shorter in duration.
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An Experienced Personal Injury Lawyer Can Help You Decide on the Right Option for You
When you hire a lawyer to help with your personal injury case, they will advise you on a variety of aspects related to your case, including the payout of any settlement deal they are able to negotiate on your behalf. Your lawyer will explain the financial challenges presented by your personal injury and how the various settlement options will address them.
Having an experienced lawyer by your side can be critical when negotiating your settlement, as they will have vast knowledge of the effect of these different payout options and will be in the best position to secure a settlement deal that works for you.
Damages That May Be Paid Out in a Personal Injury Case
Suffering a significant injury can result in both financial and emotional hardship. Securing compensation helps cover financial losses and improves recovery after an injury. The compensatory damages available will depend on the details of your case.
Economic Damages
Economic damages are meant to cover tangible financial losses caused by your injury. The money you receive for these damages is meant to cover your financial losses dollar for dollar. The economic damages available in a personal injury case often include:
- Medical expenses
- Future medical costs
- Property damage
- Lost wages
- Decreased earning capacity
The medical expenses you can recover through a personal injury lawsuit are complicated in Louisiana, as some medical costs are fully recoverable while others may only be recoverable in part.
An experienced personal injury lawyer can help explain the nuances of these damages so you can better understand how much you can expect to receive.
Non-Economic Damages
Non-economic damages address the emotional and psychological toll of the injury. This could include compensation for loss of companionship, guidance, and support, as well as pain and suffering for the emotional distress caused by your injury.
Because non-economic damages are meant to compensate you for profound losses that have a severe impact on your quality of life, the amount of compensation you can receive for these losses is often substantial.
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Choosing how to receive your personal injury settlement is a critical decision for securing your financial future. An experienced personal injury lawyer can help you understand your options and guide you through the process to ensure you make the best choice. At Fisher Injury Lawyers, we have extensive experience assisting individuals with personal injury claims.
Reach out today by completing our online contact form or calling us to schedule a free case review with a member of our legal team.
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