Lump-Sum versus Structured Settlements
If you have been harmed by a negligent party, a successful personal injury claim can help you receive the compensation you need to cover related expenses. Typically this money is paid out either as a lump-sum, a structured settlement, or some combination of the two. There are important differences between these options, and a personal injury lawyer can help you determine which option is best for you.
A lump-sum payment means that you will be receiving all of the money at once. Many people like to have all of their damages immediately, but this runs several risks. It is common for people in this situation to spend their money recklessly. In addition, lump-sum payments are taxed more heavily. However, for people who have a strategy for investing their money, or have a number of expenses that need to be taken care of immediately, lump-sum payments can work.
A structured settlement is an arrangement where you receive your damages as a series of steady payments over the years. Although many people want their money right away, a structured settlement provides you with a steady source of income. Structured settlements are also less heavily taxed than lump-sum payments, and people who receive steady payments are less likely to spend all of their money recklessly. For people with immediate expenses, combining the two might be best.
If you have been seriously injured and believe someone else is responsible for your suffering, you are entitled to receive damages for your medical bills and other expenses. With the help of an experienced Champaign personal injury attorney, you may be able to receive the damages you deserve in a way that works for you.
To get started, contact a compassionate Champaign personal injury lawyer today by calling the law office of Spiros Law, P.C. today at (217) 328-2828.