How Are Personal Injury Settlements Paid Out?

Most personal injury settlements in Maryland are paid out in one of two ways, depending on the terms of the settlement agreement. If you file a successful legal claim, you could be entitled to either a lump-sum payment or periodic disbursements over time.

The Differences in Settlement Payout Options

If you are the victim of a personal injury accident and file a successful claim with the insurance company, you may need to decide how to receive the awarded compensation. Generally, you could opt for a lump-sum payment or a more structured settlement. There are pros and cons to each type of settlement: 

Lump-Sum Payout Settlement Option

A lump-sum payout means that you would receive all financial compensation in a single settlement check. While it is beneficial to receive your settlement money upfront, lump-sum payments are generally worth less than longer-term structured settlements. 

Structured Settlement Option

Structured or periodic settlements are paid in installments over time, usually on a monthly or annual basis. This payout option means that you would receive a portion of your settlement in increments. While you would initially receive less than a lump-sum payment, structured settlements often exceed lump-sum payment amounts over the course of the payment schedule. 

It could be helpful to discuss your situation with a Harford County personal injury lawyer or financial advisor before deciding on the settlement payment option that is right for you. 

How Much Are Personal Injury Claims Worth?

The amount of a personal injury settlement, payment structure, and type of compensation are different in each case. Generally, compensation awarded in a successful personal injury claim is proportionate to the loss and suffering experienced by the injury victim. This means the more you suffer or experience loss, the higher the amount of compensation potentially available. 

Types of Compensation Available for Accident Victims

Personal injury settlements can be awarded based on several different types of suffering. If you were the victim of an accident or injury caused by a third party, the type of compensation available might include:

• Damages for emotional suffering
• Reimbursement for medical bills, including doctor office visits, physical therapy, prescription medication, rehabilitation, therapy, and more
• Compensation in wrongful death cases
• Reimbursement for any lost personal property resulting from an injury
• Compensation for lost income while away from work
• Compensation for any lost potential income if you cannot return to your old job

You may also claim compensation for any disability or scarring you now suffer from as a result of the accident. 

Common Examples of Personal Injury Cases That Could Be Grounds for a Claim

Injuries are a part of life, but they could be grounds for a claim when an at-fault party causes an otherwise preventable injury. The Centers for Disease Control and Prevention (CDC) estimated that accidental injuries in 2018 alone caused nearly 25 million visits to the doctor. 

If you were injured in any of the following ways, you could have a case:

• Vehicle accidents
• Assaults, theft, and other cases of violent attacks
• Animal attacks and bites
• Medical malpractice
• Slip and fall accidents
• Injuries resulting from defective consumer products or malfunctions
• Recreational accidents
• Work-related accidents and injuries

Families may also pursue compensation through a wrongful death claim in the event a loved one is in an accident caused by negligence.

Pain, Suffering, and Loss in Personal Injury Claims

Settlement funds in personal injury cases are usually awarded because you have experienced pain and suffering at the hands of another party. If your injury caused you pain, suffering, or loss in any of the following ways, you could qualify for compensation:

• Broken bones, sprains, strains, cuts, scrapes, bruises, dislocations, and other forms of physical trauma
• Stress, anxiety, changes in personality, sleeping difficulties, and other forms of emotional suffering
• Financial struggles following unexpected medical bills, property loss, and more

If you were the victim of a personal injury accident, remember you have legal options. Filing an insurance claim could help you recover the compensation you deserve, which can make life easier during your recovery. 

Hiring a Personal Injury Lawyer for Your Financial Recovery

Following an accident or injury, it can be helpful to have a personal injury lawyer by your side, especially if you are considering legal action. There are several ways in which hiring a lawyer can help.

Lawyers have a vast knowledge of the law and can help push your case through the system while assisting with time-consuming paperwork. A legal team also offers general support and is available to answer any questions you might have about the process.

If you are awarded compensation, your legal team can help you understand your options for how a fair settlement is paid out.

While you are free to pursue a claim independently, having a lawyer by your side could be a good idea for these reasons and more.  

How Long Do You Have to Take Action on Your Claim?

According to Md. Cts. & Jud. Proc. Code § 5-101, the statute of limitations in Maryland is three years for personal injury cases. It is also three years for a wrongful death lawsuit under Md. Cts. & Jud. Proc. Code § 3-904. This means that you may have a limited amount of time to file a lawsuit following an accident, injury, or the onset of your suffering. 

Missing this deadline could cost you severely. If the deadline expires, the courts may bar your lawsuit. The insurance companies are aware of this deadline. Without the right to sue, you will not have leverage during settlement negotiations with them, and you may be forced to accept whatever they offer. 

Contact Adam Smallow Injury Lawyers Today 

Dealing with a personal injury can impact your life in more ways than you might imagine, but Adam Fights for injury victims and their families. Our law firm works on contingency, so you pay nothing unless you win. 

To learn more about what you can do to pursue a fair settlement, contact us today for a free consultation with a member of the Adam Smallow Injury Lawyers team.