Why is Settlement Done as a Structured Settlement?

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JimmyJazz4

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My husband has RSD--has been in treatment for about 1 1/2 years. His attorney has agreed to settle. My husband wants to get out of the W/C ordeal, it's just too much for him.

The attorney said if the Ins. Co. agrees to a settlement it will be a 'structured settlement' over the course of 8 years.
1) Why is that? Why isn't it a lump sum? My husband hasn't asked his lawyer because, honestly, they don't get along that well and he doesn't want to call him back just to ask this question. He also doesn't want to change lawyers at this point.

Also, RSD is a condition that can change over time. It can worsen, stay the same, lessen, and there could be a day when my husband just doesn't have any more chronic pain.

2) If a settlement occurs and my husband is one of the lucky ones where the pain disappears, is he allowed to work and still collect the balance of the settlement if he is in say, year 2 of 8?

Thank you.
 
Structured settlements are done to save insurance companies money. It works like this. Rather than pay you a big payout of $10,000, insurers create an annuity.

An annuity might only require the insurer to pay out $7,000 into an annuity. Money makes money, so they pay you $10,000 over time, by using a $7,000 annuity. The numbers I used aren't exact, but the idea is to use less money to pay out their liabilities.

You don't have to take the settlement in structured form. If you're unhappy, hire another lawyer. Don't settle the way this one is advising.

The terms of each settlement are different. Your husband's settlement will tell him if he can work.

If you don't like the deal, don't take it. I will tell you that some people do settle too soon. If they're offering you $10,000 today, it could be $15,000 in six months.

It isn't wise to settle, if you're unhappy. If you dint get along with your lawyer, fire her. Hire another lawyer. We do have choices, choose wisely.


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Thank you for the reply. It is REALLY appreciated!

My husband wants out of the W/C circus. He feels like he's in a prison, having to go to doctors all the time. Two of the W/C doctors agree he has RSD and 2 doctors my husband chose also state he has RSD, so there's no question about his problem.

He just wants out of it and to go on with his life, even if he has chronic pain. He'll take less money if it means he can have some peace.
 
Structured settlements are done to save insurance companies money. It works like this. Rather than pay you a big payout of $10,000, insurers create an annuity.

An annuity might only require the insurer to pay out $7,000 into an annuity. Money makes money, so they pay you $10,000 over time, by using a $7,000 annuity. The numbers I used aren't exact, but the idea is to use less money to pay out their liabilities.

You don't have to take the settlement in structured form. If you're unhappy, hire another lawyer. Don't settle the way this one is advising.

The terms of each settlement are different. Your husband's settlement will tell him if he can work.

If you don't like the deal, don't take it. I will tell you that some people do settle too soon. If they're offering you $10,000 today, it could be $15,000 in six months.

It isn't wise to settle, if you're unhappy. If you dint get along with your lawyer, fire her. Hire another lawyer. We do have choices, choose wisely.


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We were thinking about your response and have another question.
FYI-the attorney is going for about $140k for loss of function of left leg.

You made my husband feel better that he can get another lawyer, thank you. Last week his lawyer told him he was going to be very proactive on this and he was going to follow up with IC this week. My husband called the lawyer yesterday, Thursday, and the lawyer's response was, "I haven't heard anything yet." This p****ed off my husband and he told the lawyer that he said HE was going to follow up and he wanted him to follow up immediatedly. The lawyer said, "Are you threatening to fire me?" (He asked this last week, too, when my husband said he wanted to settle and would look for another lawyer if the current one didn't do his job).

My husband had to tell him to call the IC and call him back, which the lawyer did, after hemming and hawing about it. The lawyer said he left another message and that he'd put it on his calendar to follow up next Weds.
Needless to say, my husband's had it with this guy.

We're wondering, though, what would hiring a new lawyer entail?
Would it delay settlement proceedings?
Would the current lawyer bill us for anything? He has been receiving 20% of my husband's w/c check since April--about $200/month.
If the lawyer can bill my husband for anything, may that be added onto the settlement costs by the new lawyer?

Thank you.
 
Speak with the new lawyer before you do anything about the old lawyer. I don't think you're on the hook to the old lawyer for anything more than what he scammed out of you already.

You might want to confirm that with the state workman's comp agency before doing anything. Each state has it's own peculiar laws.

Ask friends, relatives, coworkers, if they've ever used workers comp lawyers. Personal referrals are the best way to start your search.

Whatever your husband does, don't get involved in arguments with his lawyer. His lawyer can screw him. Papers can be lost or misplaced, it isn't wise to argue. He should bite his tongue. Yes, he's frustrated. But this won't make things better. It'll only end up slowing things down even more. The time to speak your mind is after you have received what you're seeking, money!!!!




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