Finance and Law

5 Myths about Personal Injury Settlements – Dispelled

<p style&equals;"text-align&colon; justify&semi;">The legal world isn&&num;8217&semi;t exactly easy to understand&period; Like medicine&comma; it takes extra schooling and extra tests to get certified&period;<&sol;p>&NewLine;<p style&equals;"text-align&colon; justify&semi;">The depth of extra knowledge needed to understand injury settlements confounds people&period; This is one reason that police procedurals and medical dramas are so prevalent&comma; people love to peer into these areas&period;<&sol;p>&NewLine;<h2 style&equals;"text-align&colon; justify&semi;">Injury Settlements Myths<&sol;h2>&NewLine;<hr &sol;>&NewLine;<p style&equals;"text-align&colon; justify&semi;">Like most myths&comma; these are products of wishful thinking or a lack of looking at things closely&period; It&&num;8217&semi;s easy to assume information and move on&comma; after all&comma; you only have so much time and energy&period;<&sol;p>&NewLine;<p style&equals;"text-align&colon; justify&semi;">Remember&comma; the spread of misinformation hurts many and helps few&period;<&sol;p>&NewLine;<h3>Small Injuries&quest; No Case<&sol;h3>&NewLine;<p style&equals;"text-align&colon; justify&semi;">The size of the injury doesn&&num;8217&semi;t matter&period; What matters is that elements in the system are held accountable&period;<&sol;p>&NewLine;<p style&equals;"text-align&colon; justify&semi;">Small claims and minor injuries stack up to hold insurance agencies accountable&period; The very fact that these cases cost more to litigate than to simply let go works in the favor of the insurance company&period;<&sol;p>&NewLine;<p style&equals;"text-align&colon; justify&semi;">Taking them to court and making them lose with penalties on top drives home the point that business needs to play fair&period;<&sol;p>&NewLine;<h3>They&&num;8217&semi;re Tax-Free<&sol;h3>&NewLine;<p style&equals;"text-align&colon; justify&semi;">This is a partially true and partially not so much statement&period;<&sol;p>&NewLine;<p style&equals;"text-align&colon; justify&semi;">The awards component of a settlement is not taxed&period; However&comma; the wage compensation part is&period; Essentially&comma; if you would have paid taxes on the money&comma; you still do&period;<&sol;p>&NewLine;<p style&equals;"text-align&colon; justify&semi;">For a detailed breakdown read more on taxes and <a href&equals;"https&colon;&sol;&sol;lawsuitssettlementfunding&period;com&sol;are-injury-settlements-taxable&period;php" target&equals;"&lowbar;blank" rel&equals;"noopener">injury settlements<&sol;a> and contact an accountant&period;<&sol;p>&NewLine;<h3>Insurance Covers Injuries<&sol;h3>&NewLine;<p style&equals;"text-align&colon; justify&semi;">Ideally&comma; it should&period; In reality&comma; <a href&equals;"https&colon;&sol;&sol;newsforpublic&period;com&sol;telemarketing-sales-leads-work-for-insurance-agents&sol;">insurance agents<&sol;a> are incentivized by insurance companies to offer less than what it cost to cover an injury&period; They also will&comma; as a matter of business&comma; find any reason to avoid covering costs&period;<&sol;p>&NewLine;<p style&equals;"text-align&colon; justify&semi;">Insurance also commonly fails to account for non-material losses&period; Injury lawsuits work to make up these differences&period;<&sol;p>&NewLine;<h3>Cases Take Years<&sol;h3>&NewLine;<p style&equals;"text-align&colon; justify&semi;">Some cases do take years to go through&period; These are often in the class-action category and the number of people involved stretches out the timeline&period; In other instances&comma; subtle injuries take time to discover and verify&period;<&sol;p>&NewLine;<p style&equals;"text-align&colon; justify&semi;">Even so&comma; by years it actually means two&period; And those are the exceptions&period; Most personal injury cases are resolved before they even make it to trial&period;<&sol;p>&NewLine;<h3>Out of Pocket Costs<&sol;h3>&NewLine;<p style&equals;"text-align&colon; justify&semi;">This strikes both ways&colon; the party suing and the party getting sued&period;<&sol;p>&NewLine;<p style&equals;"text-align&colon; justify&semi;">You don&&num;8217&semi;t know if you&&num;8217&semi;ll have the funds to pursue a case&period; This is resolved by lawyers working on contingency and offerings of <a href&equals;"https&colon;&sol;&sol;www&period;investopedia&period;com&sol;personal-finance&sol;what-lawsuit-settlement-loan&sol;" target&equals;"&lowbar;blank" rel&equals;"noopener">lawsuit settlement loans<&sol;a>&period;<&sol;p>&NewLine;<p style&equals;"text-align&colon; justify&semi;">The party getting sued rarely pays their costs out of pocket&period; Instead&comma; these costs are covered by the defendant&&num;8217&semi;s insurance&period;<&sol;p>&NewLine;<p style&equals;"text-align&colon; justify&semi;">The courts don&&num;8217&semi;t intend for you to be ruined or do any ruining to seek just compensation and a fair verdict&period; They are imperfect and things happen but are far rarer than anecdotes suggest&period;<&sol;p>&NewLine;<p style&equals;"text-align&colon; justify&semi;"><strong>Get More<&sol;strong><&sol;p>&NewLine;<p style&equals;"text-align&colon; justify&semi;">The persistence of injury settlement myths comes down to exaggerations of one-offs as being the most typical result&period;<&sol;p>&NewLine;<p style&equals;"text-align&colon; justify&semi;">Always check up on information from multiple sources to stay informed and keep an eye on the world&period;<&sol;p>&NewLine;

Hardik Patel

Hardik Patel is a Digital Marketing Consultant and professional Blogger. He has 16+ years experience in SEO, SMO, SEM, Online reputation management, Affiliated Marketing and Content Marketing.

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