Lump sum settlements are settlement agreements that transfer the recipient’s total compensation a single payment. This payment can be thousands or even millions of dollars, depending on the facts of the case. This is the most common type of settlement in a personal injury case and in many other types of cases where an injured victim recovers damages.
In most situations, the claimant receives their payout after an insurance company cuts a check for the full settlement amount. If you are working with an attorney, this check will go to your attorney who will then take out their fees and transfer the rest of your money to you.
Lump Sum Settlements Are Common in Personal Injury Lawsuits
Most personal injury settlements and workers’ compensation settlements come as a lump sum settlement. This is the large, one-time payment someone may receive after negotiating a car accident settlement based on Pennsylvania’s choice no-fault auto insurance laws or after working out an agreement with the workers’ compensation insurance company.
Getting a lump sum payment means you have control of the full amount of your payout immediately. You can use it to pay medical bills or make other payments or invest in the way that best suits you and your family.
In Some Cases, There May Be Advantages to a Structured Settlement
While lump-sum payments are more common, some families would rather try to negotiate a structured settlement after an accident. This is often a good option if the victim is very young and requires ongoing care, or if there are serious injuries that will likely need ongoing and future care.
Structured settlements consist of initial payment to cover your current expenses and then regular payments over the life of a set term.
Always Discuss Your Settlement Offer with an Attorney Before Signing Anything
A lump-sum settlement offer looks like a lot of money, and it is tempting for victims to take the first offer and put the whole thing behind them. However, there are many things you must consider before agreeing to a settlement agreement. A lump-sum settlement—even one that seems large—may not be enough to cover your expenses and losses, much less future care needs and pain and suffering.
Make sure you ask yourself:
- Will this provide enough compensation for me if I do not make a full recovery?
- Will this cover my losses if I cannot return to work?
- Do I understand the potential cost of ongoing and future care? Does the settlement offer cover it?
- Is there a possibility that my condition could worsen?
- Is this a fair settlement based on my full range of losses and expenses?
- How do I know if this settlement covers my pain and suffering losses?
Before you sign anything in a personal injury or workers’ compensation case, it is important to discuss the facts of your case and the settlement offer with a lawyer who handles similar cases. Without taking this step, you may settle for much less than you are entitled to. An attorney from the Berger and Green team can help you get the settlement you deserve.
We can help you answer all these questions and more. All too often, we see accidents or injury victims who leave thousands of dollars on the table. We can help you understand the potential value of your case and discuss the pros and cons of a lump sum settlement based on your individual needs.
Berger and Green Can Help You Negotiate a Just Lump Sum Settlement
The attorneys from Berger and Green have decades of combined experience helping our clients recover the settlements they need and deserve. Founding partner Laurence B. Green has more than 40 years handling personal injury cases. Our team can calculate what a fair settlement might look like in your case based on your damages and pursue that settlement for you.
We can also advise you if a lump sum or structured settlement might be best based on your injuries, ongoing care costs, and other facts of your case. Let us help you understand your options and guide you through making these decisions.
Talk to a Pittsburgh Personal Injury Attorney About Your Settlement
If you have questions about a settlement value or type of settlement in a personal injury, car accident, or workers’ compensation case, Berger and Green can help. We can address your concerns, ensure your settlement offer is fair, or take other steps to pursue the compensation you deserve. Our team handles cases in Pittsburgh, elsewhere in Allegheny County, and elsewhere in the region.
Call or text us today at (412) 661-1400. We offer no-cost, no-obligation case reviews, and handle every case on a contingency basis.