If a negligent trucker caused your truck accident, they may be responsible for paying you compensation for your injuries under Virginia law. The amount you are entitled to could be substantial if you suffered a long-term injury that requires future medical treatments and may limit or prevent you from working throughout your life. If you are in this situation, you may want to consider one option: to have the amount you are receiving from the insurance company paid through a structured settlement.
What Is a Structured Settlement?
In most truck collisions, the victim receives their settlement amount in a lump sum payment from the insurance company. However, another option is to accept the payments over time in a structured settlement. If you and the insurance company agree to a structured settlement, you would be able to negotiate all of the terms of how you will be paid. For example, you can decide on the following:
- Whether you want a larger initial payment and how much the payment should be
- Length of time you will be paid
- Amount of your payments and when they would be paid
- Whether you want a larger lump sum payment to cover anticipated larger expenses at a later date
- Whether you want your structured settlement payments to end at your death or continue to be paid to your surviving spouse or other family members
How a Structured Settlement Could Benefit You
Like many decisions in life, there are pros and cons to accepting a structured settlement of your truck accident claim. The obvious con of accepting this payment arrangement is that you would not have access to all your money right away and may not have the money in the future when you suddenly need it.
However, if you suffered catastrophic injuries, there are many benefits to being paid through a structured settlement. They include:
- More money. The insurance company may be willing to pay you more money through a structured settlement than if they have to pay you a lump sum. This is because they would fund your settlement through an annuity company and may not have to pay them the entire settlement amount when setting up your payments.
- Future financial stability. If you receive your payment in a lump sum, you may be tempted to spend it more quickly. You may not have the fixed payments in the future if you need to pay your medical bills and support you and your family. Accepting your payments in a lump sum protects you from this happening.
- Tax benefits. You may owe taxes on some types of compensation you are receiving. If you accept your payments over time, you also spread out your tax liability.
If you were injured in a truck accident, you need an experienced truck accident lawyer to fight for the compensation you deserve and advise you on whether a structured settlement is the best way to receive your payments. To learn how we can assist you, call our Norfolk office to schedule your free case evaluation today.