What Is a Catastrophic Settlement?
A catastrophic settlement is a financial reward granted to a catastrophic injury victim by the insurance company in exchange for not filing a lawsuit. Most insurance companies prefer to settle catastrophic injury cases out-of-court to limit their losses by avoiding heavy fines. Some cases are settled even before the victims file a lawsuit, while others are settled just before a trial begins.
Learn more about catastrophic injury cases, settlements, the compensation you could get, and why hiring a lawyer is essential.
What Is a Catastrophic Injury?
According to personal injury law, a catastrophic injury is a type of injury that results in long-term or permanent disability. These injuries prevent victims from returning to work or performing other tasks like they once did. Catastrophic injuries are often caused by motor vehicle accidents, explosions, slips and falls, medical negligence, and work-related accidents. You may be entitled to financial compensation if you’ve suffered a catastrophic injury.
What Are the Benefits of a Structured Settlement?
A structured settlement is a particular type of settlement whereby a portion of the amount is paid to the claimant initially, and the balance (usually the more significant portion) is paid out in installments. With this type of settlement, the negligent party buys annuities from the insurance company, and then the claimant receives payments over an extended period.
The following are the various benefits a claimant gets by accepting a structured settlement arrangement:
- Guaranteed Stream of Income: With this arrangement, the claimant has a guaranteed income stream over the agreed-upon period by both sides. In some cases, claimants receive payments from structured settlements throughout their lifetime.
- Tax-free Income: Structured settlement payments and their interest rates are tax-free all over the country. Additionally, creditors and family members cannot claim the victim’s structured settlement in case of a divorce or debt.
- Cost of Living Adjustment: Most structured settlements involve a cost-of-living adjustment clause. This clause is intended to cushion the claimant every year the cost of living increases.
- Customized Payments: Structured settlements can be customized per the claimant’s cash flow needs. This includes medical expenses, car payments, and other living expenses.
- Direct Deposits: Unlike other settlement payments that the lawyer’s office mails to the claimant, structured settlement payments can be deposited directly into the claimant’s bank account. This provides much-needed flexibility for most people.
- No Management Fees: Claimants are not charged any fees or commissions by the insurance companies for managing their structured settlement payments.
- Ease of Transfer: Structured settlements are designed to quickly transfer them to a named beneficiary or beneficiaries in case the claimant passes away before the agreed payment period elapses.
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What Compensation Can You Get in a Catastrophic Injury Case?
As a victim, Darryl ‘The Hammer’ Isaacs can handle your case and help your pursue compensation for the following damages:
- Medical expenses for hospital stays, emergency medical services, surgical care medical equipment, vocational rehabilitation, physical therapy, prescription medications, and in-home nursing care
- Lost income and benefits
- Temporary or permanent disability
- Permanent scarring and disfigurement
- Emotional distress
- Pain and suffering
- Reduced earning potential
- Diminished quality of life
- Out-of-pocket expenses related to the injury
- Punitive damages, if applicable
What Factors Can Affect the Catastrophic Settlement Amount?
The settlement amount awarded in a catastrophic injury case usually depends on various factors, including the following:
- The Severity of Your Injuries: Severe injuries usually involve substantial medical bills, extensive pain, and lifetime care. These factors always result in more significant settlement amounts.
- Liability: If you don’t share any fault for the accident that caused your catastrophic injury, you’ll likely receive a more considerable settlement amount. On the other hand, if you’re partly liable for the accident, the settlement amount you’ll receive will reflect the percentage of your fault.
- Evidence Quality: Presenting high-quality evidence that proves liability and the value of your future medical expenses will likely get you a better settlement offer. Such evidence may include witness statements, medical records, medical reports, and testimonials from accident reconstruction experts and medical professionals.
Why Hire a Lawyer for Your Catastrophic Injury Case?
Filing a catastrophic injury lawsuit on your own is not easy. The insurance company already has a legal team. You shouldn’t have to go up against them alone. While we handle your case, you can get back to focusing on recovering from your catastrophic injury.
Once you hire our attorneys, we’ll do the following:
- Investigate the accident and identify all liable parties
- Gather enough evidence to strengthen your case
- Interview any witnesses present at the accident scene and record their statements
- Hire accident reconstruction experts and investigators to recreate the events of the accident and help prove liability
- Use your medical records and report to prove the extent of your injuries
- Answer all your questions and keep you updated throughout the legal process
- Handle negotiations with the insurance company and the defense lawyers to ensure you get a fair settlement
- Take your case to trial, if necessary
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