After going through the hassle of dealing with insurance claims, you may think you are finally relieved from the stress. However, it’s not the end yet. You also have to deal with the methods of how you would like to get paid, and it’s important to keep in mind that once you are done with the settlement agreement, you can’t change it.
How Are Personal Injury Settlements Paid Out?
Even if you think later on that the amount you initially agreed on isn’t enough, there’s nothing you can do about it now, as you signed the agreement yourself with full consent. That’s why you should always get a thorough consultation from an expert personal injury lawyer. For instance, if you’re a resident of Bergen County, a personal injury lawyer in Bergen County, NJ can walk you through the entire process till the settlement amount is paid out professionally and legally. Hence, if you want to clear your expectations regarding the personal injury settlement, keep reading!
Types of Personal Injury Settlements
A personal injury settlement can be paid out to you in two ways: structured or lump sum. Before signing the settlement agreement, it’s vital to know the difference between them.
Structured Personal Injury Settlement
A structured personal injury settlement is one where you’re paid based on an annuity, meaning you will be paid a certain amount of money at regular intervals. This kind of payment is ideal if you want to have a consistent and regular flow of cash to cover your daily expenses.
Lump-Sum Personal Injury Settlement
Whereas lump-sum payment means you will be paid the entire settlement amount once and for all. This payment type is best for those who would like to invest cash to get a greater return on investment in the future, and they don’t have much of a problem dealing with daily expenses.
Negotiating Medical Bills after Settlement
If you didn’t have enough money to pay to the hospital upfront for your medical treatment right after your injury, and you had a lien against it, the settlement amount will automatically be paid out of your total personal injury settlement amount to the hospital.
A medical lien requires the medical provider’s name along with your name and your attorney’s name on the settlement agreement for evidence of the unpaid amount of bills. The amount written for the lien can also be negotiated with the help of your attorney. You can also get a lien for mechanics and employers for your peace of mind.
Attorney and Legal Fees
After you are done with the medical expenses and the lien, you have to pay your lawyer fees or any other pending legal fees. Usually, lawyers work on a contingency basis, i.e., they will only charge you a fee when you win the case. A certain percentage that you had decided with your attorney is deducted from the total settlement amount. After that is cleared, you will finally be entitled to the amount for your loss, damage, and sufferings.