Should I Accept a Structured Settlement?

When you are injured, the last thing you want to worry about is money. You need to focus on healing and getting back to your life. That is why some people choose to accept a structured settlement following an injury. A structured settlement is a series of payments that are made over time, usually as a result of a lawsuit. They can be an advantageous way to receive compensation, but there are also some disadvantages to consider before accepting one.

Continue reading to review some of the most referenced pros and cons of structured settlements in personal injury cases.

Call 317-881-2700 For Structured Settlement Legal Advice in Indianapolis IN.
Call 317-881-2700 For Structured Settlement Legal Advice in Indianapolis IN.

The Facts Surrounding Structured Settlements

Structured settlements are an option for people who have won lawsuits or received large sums of settlement money as a result of personal injury claims. A structured settlement is a financial arrangement in which the recipient receives payments over time, rather than in one lump sum. There are advantages to this type of arrangement, including the ability to receive larger total payments and the elimination of the need to invest or manage a large sum of money all at once. However, there are also some potential disadvantages to consider before agreeing to a structured settlement.

Personal Injury Structured Settlements: Advantages vs. Disadvantages

One of the biggest advantages of a structured settlement is that it can potentially provide greater financial security than a lump sum payment. This is because the payments are spread out over time, which can make it easier to budget and manage your finances. Additionally, the payments are often tax-free, which can further increase your overall financial security. However, one of the potential disadvantages of a structured settlement is that you may not have access to all of the money immediately. This can be particularly problematic if you have large medical bills or other expenses that need to be paid right away.

Another potential disadvantage of a structured settlement is that the terms of the agreement may be inflexible. For example, you may be required to receive payments over a certain period of time, and you may not be able to modify the agreement if your financial circumstances change. Additionally, if you pass away before the end of the structured settlement agreement, your beneficiaries may not receive the full amount of the money agreed to with the structured settlement.

Overall, structured settlements can be an option for many people, but it is important to weigh the pros and cons carefully before making a decision. If you have any questions about whether a structured settlement is right for you, be sure to speak with an experienced personal injury attorney at Craven, Hoover, and Blazek P.C. as soon as possible.

Where to Get Trusted Advice Regarding Structured Settlements in Indiana

Structured settlements can provide advantages and benefits to those who are injured or disabled due to an accident or medical malpractice. However, a structured settlement is not suitable for every situation, so it is important to seek the advice of an experienced Indianapolis personal injury attorney when considering such an agreement. The Law Office of Craven, Hoover, and Blazek P.C. is experienced in structured settlements and can provide you with the legal advice to determine if this option is right for you.

Are you ready to learn more about your rights to collect compensation for your recent accident in Indiana? Contact the Law Office of Craven, Hoover, and Blazek P.C. today at 317-881-2700 and schedule a free case evaluation with an accident lawyer in Indianapolis. Our extremely knowledgeable team is standing by to help you with your legal needs. We understand that making the decision to hire an attorney can be difficult and we are here to assist you in any way possible. From the far corners of Indiana to beyond, we tirelessly advocate for injured Hoosiers – no matter where they may be.

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Information About Personal Injury Structured Settlements

When you are in the middle of a personal injury lawsuit, your mind is in constant motion with questions about all the possible outcomes of your case. Although you might have an experienced personal injury lawyer on your side who is fighting for your rights to compensation, it can be tough putting your mind at ease until the case is completely settled.

Many people are worried about their settlements and wonder how they will receive their payment in the end. Questions like, “Will I get all my money at once?” and “Is it possible that my compensation will be awarded as a structured payment?” are all common concerns by most personal injury plaintiffs.

Injury Lawyers Indianapolis Indiana 317-881-2700
Injury Lawyers Indianapolis Indiana 317-881-2700

The Benefits of Structured Accident Settlements

A structured settlement is an agreed periodic payment plan in which the recipient receives a set amount of money over a specified period. Structured payments are a fairly common method of dispersing personal injury settlements and verdicts. Whether a structured settlement is a good result or a bad one really hangs on the recipient. There are both advantages and disadvantages of structured payments, depending on personal perspective.

The number one benefit of a structured settlement is that you usually receive more money overall. In a lump sum payment, the amount is usually negotiated lower. Another major benefit is personal financial management. When a large sum of money is paid out overtime, it is typically easier to manage your finances, pay bills, save money, and maintain a positive financial portfolio. It may be especially beneficial in terms of tax liabilities as well.

Additional Advantages of Structured Payments:

☑ Simpler Tax Planning
☑ Possible Income Tax Advantages
☑ Additional Annual Income
☑ Broader Subsidy Opportunities
☑ Budget Protection

Disadvantages of Personal Injury Structured Settlements

One of the common downfalls to structure pay is limitation. For those consider themselves financially savvy, not receiving your full compensation can be a huge restriction since you cannot use the money to make any lucrative investments. In other cases, a personal injury victim has already paid all of their hospital bills, medical expenses, and other related expenses, out of pocket. They have also already incurred lost wages from work. So, by not receiving a full payment can be frustrating since victims in this type of situation is simply trying to put the money back where it was before their accident.

Timeline for Receiving a Structured Settlement

If you win your claim and an insurance company agrees to give you a structured settlement, you will not be given a paycheck right away. Instead, you will be paid a set amount over a set period of time. The terms of structured settlement agreements vary from case to case, and payment amounts, and schedules can be set in many different ways. These payments generally begin as soon as all the paperwork is processed; however, this time period can vary, and sometimes can take up to one year to begin receiving payments.

Lastly, a settlement can also be a portion paid out up front in cash and a portion in a structured settlement.

Are you looking for a seasoned personal injury law firm to obtain the maximum settlement for your Indiana accident claim? Contact the Law Office of Craven, Hoover, and Blazek P.C. at 317-881-2700 to schedule a free personal injury case evaluation. You can speak directly with a trusted and experienced Indianapolis personal injury lawyer over the phone, via online video, or in person at our office. We represent clients throughout the state of Indiana.

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4 Factors to Consider Before Agreeing to a Structured Settlement

In a personal injury case, a structured settlement is an agreed-upon, periodic payment arrangement in which the victim (or claimant) receives a determined amount of money over a specified stretch of time. Although there are both pros and cons to entering a structured payment plan, as a personal injury victim or claimant, it is important to understand what is at stake before the insurance company attempts to arrange one with you and your attorney.

Continue reading to learn the top 4 factors to consider when deciding on a structured settlement, as well as, where to get legal advice regarding your potential accident claim.

Structured Settlement Accident Attorneys Indianapolis Indiana 317-881-2700
Structured Settlement Accident Attorneys Indianapolis Indiana 317-881-2700

Entering a Structured Settlement

One of the top benefits of structured settlements is that recipients typically get paid more money overall, as lump sum payouts are usually negotiated lower. One of the main disadvantages discussed among structured settlement recipients and legal advisors is the fact that it can hold you back from using it to invest in things like stocks, bonds, real estate, business, schooling, and more. In fact, this is one of the first considerations you should make in regard to a structured settlement.

Here is are the top 4 factors to consider before entering into a structured payment arrangement:

1. Investment Capabilities – As just mentioned, structured settlements can sometimes have an impact on your investment potential. If you accept a lump sum payment, you are free to take full advantage of investment opportunities and earn more money down the line. With a structured settlement, periodic payments might not be enough to make a significant or valuable investment.

2. Big Acquisitions – If you want to use your settlement money to purchase something large or of great value, such as a house or business, it might be difficult doing so if you are only being paid a certain amount at a time. Lump sum payments allow recipients to make big purchases.

3. Exaggerated Offers – It is common for insurance companies to overplay the value of the settlement offer to recipients, in an attempt to increase their eligibility for certain industry or tax rebates, or specific legal defenses. This is all in attempt to reduce the actual cash value of their settlement offer.

4.  Age and Time – If a recipient of settlement is old in age, or probably does not have many years left to live otherwise for health reasons, a structured arrangement would be arbitrary. A recipient that is old or terminally ill might not live long enough to see the conclusion of the structured settlement.

Learn More About Your Claim From a Trusted Indianapolis Accident Lawyer

Call the Law Office of Craven, Hoover, and Blazek P.C. at 317-881-2700 for trusted legal advice regarding your personal injury claim in Indianapolis, Indiana. Our esteemed personal injury attorneys, Daniel Craven, Ralph Hoover, and Keith Blazek will work hard so you can recover the full and fair compensation you deserve after being injured in a serious accident. Not only do we represent injured people throughout the State of Indiana, we never collect lawyer fees unless we obtain a settlement or judgment for you.

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