Are you worried about your family’s financial future after a serious accident?
Major injuries can devastate a family’s finances. Medical bills pile up. Lost wages decimate savings accounts. Suddenly… families everywhere are forced into financial crisis mode.
The good news is that personal injury compensation exists to help those affected recover from these losses. With careful planning every family can rebuild financial stability after a serious accident.
Let’s dive into…
- The Real Long-Term Costs of Serious Accidents
- How Personal Injury Compensation Helps Families
- Recovering Your Family’s Finances
- 4 Mistakes That Cost Families Thousands
The Real Long-Term Costs of Serious Accidents
Here’s the reality that most people don’t realise…
The financial impact of serious accidents goes far beyond the initial hospital bill. In fact, new data from Elrod Pope found that many victims suffering from traumatic injuries face expenses that continue to grow for months, or even years, after the incident occurs.
And the statistics back this up.
66.5% of bankruptcies filed in the United States in recent years included either medical expenses or lost wages from a work-related illness. That means that over two-thirds of families filing for bankruptcy were victimised by medical bills and associated costs.
But here’s the scary part…
Americans incurred medical costs due to injuries totalling $1.2 trillion in 2021.
That number includes everything from:
- Hospital bills
- Lost wages
- Decreased productivity at work
- Long term recovery costs
For many individual families that translates into tens of thousands of dollars in unanticipated bills. Most families just aren’t prepared for a financial crisis of this magnitude.
How Personal Injury Compensation Helps Families
Think of personal injury compensation like an emergency fund.
Someone else caused the accident through their negligent actions. Why should victims and their families be forced to absorb all the financial losses?
Personal injury compensation exists to shift that responsibility onto the party at fault. Here’s how it works:
By filing a successful claim with the help of a lawyer, victims can recover compensation to cover hospital bills, lost wages, ongoing medical treatment costs, and much more. Instead of drowning in debt families can take a breath and focus on recovering from the injury.
Studies show that 91% of injury victims with attorneys receive some form of settlement payout. But that number drops to only 51% for those who file claims on their own.
That’s a huge difference.
The reason attorneys are so effective comes down to knowledge and experience. Personal injury attorneys know how to:
- Accurately document injuries
- Identify all of the ways you deserve compensation
- Negotiate with opposing insurance companies
- Follow all proper legal procedures
Without an attorney representing them many families settle for far less than they deserve. Some receive nothing at all.
Recovering Your Family’s Finances
Personal financial recovery takes time.
Just like physical injuries patients should expect recovery to take time. Though your family’s finances can be rebuilt with careful planning.
Step 1 – Get Your Documents In Order
Organise every piece of documentation related to the accident and recovery process. Medical records, bills, missed work notices, paychecks, receipts for out-of-pocket expenses. Stuff every detail into one folder you can refer back to easily.
Step 2 – Understand Damages
Too many families think about damages only by looking at current medical bills. But what about future medical procedures? Does your injury require physical therapy? Will you be able to return to work at the same capacity? All of these factors must be considered when seeking damages.
Some of the most common forms of compensation include:
- Medical costs
- Lost wages from time off of work
- Repair or replacement of personal property
- Future costs like therapy, recouperation, etc.
- Non-economic damages like pain and suffering
Each of these details matters and can help you recover your family’s financial footing. Settle for one and you may never fully recover.
Step 3 – Talk To Professional Advisors
This should include both legal and financial professionals. A skilled personal injury attorney can help you maximise the value of your compensation claim. A financial advisor can help you manage that compensation once it’s been granted.
Common Mistakes That Can Cost Families Thousands
Not every family takes these steps when dealing with the financial fallout of a serious accident. In fact, here are some extremely common mistakes that can irreparably harm your ability to recover compensation.
Families Accept Early Settlement Offers
You’ll often see these offers come directly from insurance companies. Especially if they were responsible for causing the accident in the first place. The reason they offer settlements early on is because they know…
The Amounts Are Below What You Should Receive
An initial settlement offer may sound high during the first few weeks after an accident. In reality, insurance companies count on victims accepting these deals without looking into long-term injuries that may have occurred.
The problem is these injuries can come months after the initial incident. By accepting an early offer you’ll likely sign away your rights to seek any future compensation.
Don’t Document Injuries & Expenses
Do you keep records of all of your doctors appointments? What about days you missed from work? Each piece of information can help you during the personal injury claims process. Talk to a lawyer about what other information you should be documenting.
Fail To Act Quickly
Every state has what’s called a “statute of limitations” when it comes to injury claims. This time limit is essentially a deadline by which you must file a lawsuit against the party who injured you. If you wait too long then you could lose your right to sue for damages.
Post Too Much On Social Media
Insurance companies love scouring social media looking for things their victims say or do that contradict their injury claims. Think about it. You file a claim for a broken leg. Then post pictures of yourself playing some sport on social media. You’re not going to hear from that insurance company anytime soon.
Don’t be that person.
Prepare For The Future After Receiving a Settlement
Once you’ve received a settlement many families run right to the store and make big purchases. Although it may be tempting you should take a breath and create a plan for your new funds.
If you don’t have emergency funds set aside now is a great time to start. You’ll also want to consider hiring a financial advisor that specialises in injury settlements. Some other things to consider are…
- Do you have funds set aside for future medical bills?
- Will this effect your ability to pay for college?
- Are you investing your money wisely?
- Will you need to make any large purchases?
Like your physical recovery you want your financial recovery to last.
Bringing It All Together
Major accidents can send a family’s finances into a tailspin. However, that doesn’t mean you can’t recover what you’ve lost.
Just remember…
Know what injuries really cost. Document everything. Work with professionals and avoid these common mistakes. Once you receive a settlement work with professionals to ensure your family’s financial stability for years to come.
No family should ever let one accident destroy their financial future. Plan ahead now and position your family for the best recovery possible.
