Reducing The Financial Cost Of A Personal Injury
25th November 2013
Dealing with a personal injury could have a huge financial cost on you and your family, and you will need to take the right steps to ensure that this situation does not become irreparable. Many personal injury claims involve disability and permanent health problems, and claimants can require lifelong care, which can be very expensive. The death of the main breadwinner can cause financial devastation to a family, leading to countless immediate and long-term problems. Even if your injury was not particularly serious, the after-effects of it will invariably be stressful, and if you are forced to take a long absence from work, you may not have enough savings to deal with the lost wages you will incur.
One of your main priorities will inevitably be to cover your financial expenses and pay the bills. In the long-term, you may have to consider the cost of long-term treatment or rehabilitation, medical equipment, changes to your home, or new treatments that may become available in the years and decades to come.
If someone else’s negligence led to your injury, then you can make a personal injury claim. Compensation claims are designed to help people cope with the costs of their injury – ideally, you should not face any financial losses as a result of the injury and should also be compensated for any pain and suffering you experienced.
Lump Sum And Successive Settlements
Personal injury claims can take the form of successive settlements or single lump-sum payments, with some claimants receiving both a large initial lump sum and successive payments for the rest of their lives. Successive, periodic payments are designed to ensure that the victim will be able to pay for their medical treatment for as long as they need it, but lump sum payments will need to be invested if they are to last for a lifetime.
The strategy claimants should take when investing lump-sum personal injury settlements is to find a low-risk strategy that will provide above-inflation returns for as long as they need. Some claimants may have a different attitude to risk than others, and people who have succeeded in high-value compensation claims would be wise to speak with a financial advisor.
Maintaining Financial Health Following A Personal Injury
There are a range of financial benefits that you be able to receive, and it is advisable for people with serious injuries to check they are receiving all the benefits they are entitled to.
You should set up a budget and understand what your incomings and outgoings are and what the cost of any medical treatment will be, and use this information to influence your investment strategy. This might involve taking on a higher degree of risk than you are comfortable with.
Many lenders and creditors will understand the impacts a personal injury can have on a debtor and will be willing to discuss alternative payment plans with you.
Taking control of your finances after a personal injury is vital if you are to prevent a bad situation from becoming considerably worse.