After a Medical Malpractice Suit, Many Plaintiffs Opt for a Lump Sum
The frightening thing about medical negligence is how widespread it is. Then again, maybe we shouldn’t be too surprised: countless dramatic television shows have illustrated the drawbacks of requiring doctors to perform intricate operations while they’re on the 68th hour of a 70 hour workweek. The Journal of the American Medical Association has a startling statistic: medical negligence is the third leading cause of death in the U.S., beat out by only cancer and heart disease.
Every year, about $3 billion goes out in the form of medical malpractice payouts. If you are currently receiving a payout in the form of a structured settlement, there’s likely a few questions you have about managing your incoming money against your debt. We’re here to help.
Bills Don’t Wait for Structured Settlements
One of the leading causes of personal bankruptcy in the U.S. is medical bills — and yet in most cases, people receive the outcome of their victorious lawsuit over many years, rather than in a lump sum that can be used to pay off all debts at once. About 26% of Americans say they don’t pay their bills on time, and this is often doubly true for those struggling under the burden of medical bills. Although the average structured settlement annuity payout is $324,000 in total, it may be years until you see the entirety of this sum, depending on what the court and/or the insurance company was required to do. Some states, for example, prefer a system that pays out over time — even if it doesn’t seem to be in the best interest of the individual plaintiff.
Get Cash for Your Settlement: Opt for a Lump Sum
Luckily, the door isn’t closed to resolving your debt now. Even if you were not given an option to receive a lump sum, there are many companies willing to buy your settlement payouts in order for a fee, but don’t worry. Surrender charges of up to or around 10% are fairly typical. In many cases, the fee money you pay is offset by the interest you would have paid anyway on the debt that you can now take care of. When you opt for a lump sum, you gain the ability to control how your money is being used.
Medical negligence can make you feel as if you’re not in control of your own body or health. By opting for a lump sum, though, you can start taking control of your finances — and your life.