Car Insurance Issues - Structured Settlements

If you are involved in a car accident and suffer injuries, you may be eligible to file a claim for damages. Often, injury victims are unfamiliar with the various compensation options available in a personal injury claim. While some victims or their families receive a one-time payment, others reach a resolution of their claim in the form of a structured settlement. A structured settlement annuity is a series of tax-free payments, rather than a lump sum payment, designed to meet basic living needs and future medical expenses.

Not all cases can be handled in the same manner, and in some situations, structured settlements are the most effective way to resolve a claim on the victim’s behalf. If you have questions about a car accident personal injury case, please call Munley, Munley & Cartwright's car accident lawyers toll free at (800) 318-LAW1 for a free assessment of your case or use our online contact form. We have offices conveniently located in Stroudsburg, Carbondale, Hamlin, Hazleton, Scranton, and Wilkes-Barre, PA.

More About Structured Settlements

Prior to the Periodic Payment Settlement Act of 1982, any personal injury victim who was awarded damages received payment in one lump sum. However, this was not always beneficial to the injured party. Large sums of money required extensive money management, and injury victims or their family members were not always equipped with the time or resources to handle that additional burden. The sudden change in financial status also tended to create an instant change in lifestyle, and people spent the funds designed to provide a lifetime of care within a few years, leaving them without the means to pay for long term treatment. Congress passed the legislation to create an option for injury victims that would provide compensation for their injuries and minimize the risk that they would run through the damages award prematurely.

Structured settlement annuities are flexible and can be designed to suit different injury needs. A simple settlement may provide for equal payments at specific intervals -- for example, one payment per month for 20 years. Payments can also be structured to provide larger sums at different intervals – for instance, someone in a wheel chair might need a replacement chair every three years, and so a larger payment might be scheduled every three years. This allows the peace of mind of not having to “save” the monthly payments to pay for a new chair, because that more expensive purchase has already been planned for.

Structured settlements can work for many types of personal injury cases, but some of the more common injury claims that involve structured settlements include:

• Persons with temporary or permanent disabilities;
• Workers’ compensation cases;
• Wrongful death cases where the surviving spouse and/or children need monthly or annual income;
• Severe injury, especially with long-term needs for medical care, living expenses and support of family.

As with any personal injury claim, the injured party must document the nature of their injuries and future medical outlook. In a structured settlement case, both the injured party and the defendant will negotiate the costs, including medical care, living expenses, and family needs. Once both sides have agreed to a settlement, the injury victim can select a payment plan that suits his or her specific needs. The defendant then assigns the settlement to a life insurance company that funds the payments with an annuity.

Contact Our Insurance Coverage Lawyers Today

Structured settlements can be a very practical and effective way of managing a damages award for serious injury. However, structured settlements require the experience of attorneys familiar with negotiating long term costs and anticipating future medical and family needs. The Munley, Munley & Cartwright firm has years of experience in dealing with accident claims. We know how to design a structured settlement plan that best represents the interests of you and your family.

If you or a loved one has been seriously injured by someone else’s negligence, you deserve experienced legal representation from a Pennsylvania law firm that understands the challenges you face as a result of your injuries and who is committed to obtaining the compensation you deserve.

At Munley, Munley & Cartwright, our goal is to provide exceptional legal services to our clients. We strive to achieve the highest standard of excellence for the protection of individual rights through team work and the use of our considerable resources and experience. For a free consultation regarding your Pennsylvania legal concerns, contact our insurance coverage lawyers online today or call us toll free at (800) 318-LAW1.

Frequently Asked Questions

1. What is a structured settlement?

A structured settlement annuity is a type of personal injury damages award that is paid to the injury victim in a series of tax-free payments, rather than a lump sum payment, designed to meet basic living needs and future medical expenses.

2. What are the advantages of a structured settlement?

Lump sum payments often force the injury victim to suddenly become a money manager – often the last role they need to take on in the midst of serious injury and disability. Families and victims alike who are unaccustomed to handling large amounts of money may spend it too soon, leaving them without the funds to pay for medical treatment. A structured settlement is designed to provide payments over a longer time period, so that every month the injured party has the funds necessary to pay for medical care and basic living expenses. This relieves the injury victim and family from having to play financial manager while ensuring that their compensation is available when they need it.

3. Can a structured settlement be reached in any personal injury case?

   • Persons with temporary or permanent disabilities;
   • Workers’ compensation cases;
   • Wrongful death cases where the surviving spouse and/or children need monthly or annual income;
   • Severe injury, especially with long-term needs for medical care, living expenses and support of family.

Structured settlements are very flexible and work for a variety of personal injury cases. Some of the most common types of cases in which they are used include: