Following a motor vehicle accident which left you injured, you may find yourself in a situation in which the only way to obtain compensation for the damages inflicted upon you and your property, is through the means of a lawsuit. However, there are also situation in which a pre-trial settlement is possible and sufficient. The only way to reach a settlement is by sitting down with all other involved parties and starting negotiations. For this to be successful, everyone involved will need to be open for negotiations, and willing to compromise around certain matters. The goal is to reach common ground and settle for a monetary amount that is fair and satisfying in the eyes of all involved parties. Having a lawyer at this junction can be helpful.
Two Types of Payouts
There are two kinds of ways to pay out a settlement: in a lump sum payment, or in the form of a structured settlement. In case of a lump sum payment, the plaintiff will receive the full settlement amount at once, unlike a structured settlement in which payment is made gradually and on a structured monthly, bi-monthly, or weekly basis. While monthly is the most common choice of periodical payments, any schedule is open for discussion.Lump sum payouts are more common, whereas structured settlements are largely limited to unusually high settlement amounts.
Annuity Payments in Connection to A Motor Vehicle Accident Settlement
Annuity payments require the defendant’s insurer to gather the necessary funds so they can cover the settlement payment and transfer it onto the plaintiff. This is most commonly achieved through the help of an annuity company from the annuity payment package is purchased by the defendant’s insurance company.
Once this transferal has been completed, the annuity company moves on to distribute scheduled monthly payments to the plaintiff. The amount of these payments has been agreed upon in the settlement. However, the annuity company does not do this out of the good of their hearts. They want to make a profit as well, which is why they will always charge an annuity rate, or fee.The reason why annuities are still used is to ensure that enough funds are available to fulfill the agreed upon payments. In the specific case of a motor vehicle collision, annuities are generally only used, if the settlement amount is unusually large.You or someone you love might have been injured in an accident and would like to get more details on the compensation that you are entitled to. It helps to call on the Injury Lawyer in Oakville to discuss more about your case.