When involved in any legal claim, like a personal injury case, you may receive a settlement offer from the other party or an insurance company. According to statistics, 90% of lawsuits are settled before going to trial.
While accepting a settlement can seem like a quick and stress-free way to resolve the issue, it is essential to carefully evaluate an offer before accepting it. The top personal injury attorneys, like Leonard Hill, can help you evaluate the offer to ensure all terms are clear and fair.
That said, below are some questions you should ask yourself before accepting a settlement.
1. Does the Offer Cover All My Medical Expenses?
It is important to consider whether a settlement is decent enough to foot all your medical bills. This is not just the current ones but also future costs. Medical bills quickly pile up, and you may need to deal with ongoing treatment like surgeries, physical therapy, and medications to manage your condition.
If your injuries are severe, you may be facing long-term or permanent medical costs. Therefore, before accepting an offer, carefully review your medical records and consult your doctor to estimate future healthcare costs to avoid struggling down the road.
2. Have I Considered Lost Wages and Future Earnings?
If your injury has caused you to miss work, your settlement should compensate for the lost wages. However, lost wages are not only about the days already missed. You should also account for any future losses.
For example, if your injuries prevent you from returning to your previous job or require you to accept a lower-paying position, you must calculate the long-term impact on your financial stability. The settlement should reflect these damages. Therefore, before accepting an offer, ask for a breakdown to determine what was included.
3. Is This Enough to Cover Additional Expenses?
Apart from medical bills and lost income, there may be other costs related to your claim. For instance, after a serious accident that leads to a permanent disability, victims may need to modify their homes.
You will require ramps, rails, or widening doorways. The transportation costs could also increase. There are additional home care expenses and out-of-pocket medical supplies. If a settlement doesn’t factor in all these expenses, you may end up paying for them on your own.
4. How Much Do I Actually Get?
There are other costs that a person incurs after receiving a settlement. These include fees and other deductions that can reduce the amount you take home. For example, you received medical treatment but hadn’t paid the bill yet. If your doctor places a medical lien, a portion of the payment goes directly to them. Your health insurance can also seek reimbursement under subrogation.
Additionally, there are tax implications for your settlement. Compensation for medical bills is not taxable by federal law. However, settlements for punitive damages and emotional distress not tied to physical injury are taxable. Therefore, the amount offered should be higher or equal to what you will take home after these deductions.
5. Have I Consulted an Attorney?
Many people are tempted to accept the first settlement they receive, thinking it is the best they can get. However, insurance companies are notorious for offering low initial settlements to minimize payouts.
An experienced attorney can assess whether the offer is fair. If not, they can negotiate better terms on your behalf. They also ensure you understand the legal implications of accepting an offer. Typically, accepting an offer means you have relinquished your right to seek extra compensation. Working with a lawyer can help you avoid such costly mistakes.
Conclusion
A settlement may seem like a quick solution. But accepting one too soon may do you more harm than good. Therefore, it is important to ask yourself these questions to protect your financial future. Consider hiring a lawyer to get the proper legal guidance.
