Decisions can be difficult after a car accident, and you can find yourself making dozens of them in some cases. Some, however, can affect your life for a long time to come. While a settlement offer is a good thing, you might need to make some good decisions about the type of settlement you are paid. Read on and make an informed decision.

Settlements and Legal Advice

Not all accident settlements are the same. It's unwise to accept a settlement without the help of a personal injury lawyer. You don't want to be paid too little for your damages, for instance, and a lawyer can make sure you are paid what you deserve. They can not only negotiate for you to get a good settlement, but they also advise you on the many aspects of a settlement. Talk to your lawyer about what the settlement covers, any deductions to expect, and how you want to be paid. You have a choice in many cases of either a lump sum payment or a structured payment. Each of these has its own benefits. Speak with your lawyer about the below settlement issues.

Lump Sum Settlements

As you might have guessed, you get the entire amount of the settlement all at once with a lump sum settlement. Those with a lot of bills to pay might want to consider this type of settlement. You may also choose a lump sum settlement if you plan to invest it and possibly earn interest on it. Some people use the money to buy a new vehicle or home or take a well-deserved vacation. 

Structured Settlements

  • One of the most compelling benefits of a structured settlement is that you may be paid more money. The insurer paying the settlement may offer more money in total if they don't have to pay it all at one time. It allows the insurer more time to pay things off — sort of like an installment payment. 
  • It's also important to know that many insurers fund structured settlements using third-party financial companies. This is a good thing because it means your money is safe even if the insurer goes out of business. 
  • A structured settlement can help some to better manage their money. They are guaranteed a certain amount of money and that can help them better budget their funds. 
  • You often are paid monthly with a structured settlement although you may make other payment arrangements. 

Please note that structured settlements are not always the best option for every injured worker. Consult with an experienced personal injury attorney to understand your options and determine which type of settlement is best for your individual circumstances.

For more information, contact a car accident lawyer near you.