We’ll reveal some of the most important questions you should have answered before accepting a settlement offer. Your lawyer can carefully review any offer you receive to guide you, but these questions can guide you if you don’t have one.
However, we recommend getting legal advice about any settlement offer before taking it. You cannot get more money later once you accept a settlement offer.
How Did The Insurer Calculate The Settlement Amount?
When you work with a lawyer, they’ll calculate how much your case is worth and negotiate with the insurer. But if you don’t have one, you must trust that the insurer calculated the right amount. To know that, you need to know how they came to the amount they’re offering.
Ask the insurer to provide a full breakdown of how they determined the settlement value. They should be factoring in all relevant details like your medical bills, lost wages, pain and suffering, as well as which injuries and treatments are covered long-term.
You also want to know if the settlement is a lump sum or structured payout. A structured settlement is when certain payment amounts are withheld and provided at set dates in the future, usually to cover anticipated future medical costs.
Laborde Earles injury was great for me they took care of me very fast and professional. If for any reason I need legal help they will be who I use.
ClientIs The Settlement Amount Enough?
You need to know if projected costs for things like ongoing doctor’s visits, prescriptions, therapy, or surgical procedures down the road will be covered by the settlement offer. If you accept the first settlement offer and it falls short, you risk footing those bills out of pocket.
That can put victims in a terrible position of either going without recommended care or treatments or facing mounting medical debt. In serious injury cases where treatment may be needed for many years, even a seemingly “good” settlement could end up leaving you unable to afford the care you need as bills exceed what was paid out.
Get estimates from your doctors on long-term costs so you understand if the proposed amount from the insurer will reasonably cover everything. Never feel rushed into a settlement – take time to fully assess your future medical costs so you don’t face the nightmare of losing access to necessary treatment due to insufficient funds.
I thank God for Digger & David. I don’t know what we would have done if it hadn’t have been for them.
Rick Smith | ClientAre There Tax Implications of a Settlement?
Take the potential tax implications into account when evaluating a settlement offer. Your total award may need to be higher to equal the take-home amount you’ll receive after accounting for taxes owed.
While money received for actual medical expenses or lost wages is generally not taxed, any funds designated for pain and suffering are usually considered taxable income. Your lawyer can work with a CPA to properly classify portions of the settlement for tax purposes.
You may have the option to receive some payments non-taxably by requesting direct reimbursement of documented medical bills and other costs rather than receiving the full amount as a lump sum.
The reassurance from Digger and his staff gave me that renewed hope that it’s going to be okay down the road.
ClientHow Does the Release Bind Me?
Signing the release form is the mark that you have accepted the settlement, but there are several kinds of releases. A basic release only pertains to the specific injuries or damages already accounted for in the settlement.
However, some releases contain broader language relinquishing your right to future claims not yet apparent. Certain phrases may keep you from getting further compensation in the future from the same accident, even if it’s justified.
Never assume a standard release form is being used without review from an attorney. Your signature waives valuable legal protections, so take time to fully comprehend obligations before agreeing.
They treated us like no other people would. Whenever we needed something they were there for us. I put my trust in them and I don’t regret it.
ClientWhen Will I Receive Payment?
It’s important to have a clear understanding of the payment timeline if you accept a settlement offer. Be sure to discuss exactly when you can expect to receive funds from the defendant or insurance company.
Payments take some time to process after jointly signing settlement papers. However, timelines can vary significantly depending on the details. Be careful of any settlement that promises money immediately without explaining how it will be distributed.
Payment schedules are an essential part of evaluating settlement terms. Do not sign any agreement until satisfied that the payment timeline proposed is reasonable and you understand when the concluded case will bring financial resolution.
Conclusion
These are just a few questions to ask before accepting a settlement from an insurer. Your attorney may have others to ask the insurer depending on your case. Hiring an attorney is the best way to remove the risk of taking a settlement.
To know if a settlement offer is worth your time, contact Laborde Earles for a free consultation. You could be owed much more than the insurers want you to believe.
