The median settlement amount for insurance company payouts in personal injury claims is $100,000. The median settlement amount for product liability claims is $1.5 million.
While these payouts sound like a lot of money, it can take months or even years to agree to a settlement amount and start receiving payments. So what do you do while you wait for your lawsuit to get settled or go to court?
Applying for presettlement lawsuit funding can help you with your financial obligations while you file your claim.
Ease Your Financial Stress
One of the biggest hurdles for the majority of plaintiffs is the financial strain of bringing a lawsuit. Obtaining pre-settlement funding will enable you to pursue the compensation you deserve.
Your funding can help you pay for your legal fees and personal financial responsibilities while you wait for your case to work its way through the legal system. Here are some things you can use your funding for.
- Home improvement
- College tuition
- Business expenses
- Medical expenses
- Legal fees
- Credit card bills
- Car payment
Hold out for a Bigger Settlement
The insurance companies want to pay you as little as possible in the settlement. Their goal is to keep their bottom line healthy, and that means negotiating you as low as possible.
Taking pre-settlement funding now can help you hold out for a larger settlement amount. These larger settlement agreements turn into structured settlements. Now you have long term financial security.
Viable Source of Income
If you’re the victim who has suffered injuries, then you may not be able to work while you file your claim. This means that your source of income is cut off just when you need it most. A pre-settlement loan can replace this funding.
An insurance company can tie up your lawsuit in court for years. With this funding, you’re able to replace your work income and support both you and your family while you wait.
Less Expensive Than a Bank Loan
The last thing you want to do in this situation is add to your mounting debt. A bank loan and a pre-settlement loan are not the same things. A pre-settlement loan is better because there’s a lower risk.
You’ll also find funding that’s “no recourse”. This means that the funding company won’t seek repayment should your lawsuit ultimately fail.
There are also no monthly payments and no interest fees. The funding company is assuming the risk.
They Understand Your Situation
By obtaining your funding from a lender that specializes in these types of loans, they understand your unique situation. Look for a lender that has an established lending history.
Also, ask if they’re the direct lender or a broker. You want to work with a lender directly to obtain the best loan terms.
Consider Presettlement Lawsuit Funding
If you’re considering filing a personal injury claim, then you should also look into presettlement lawsuit funding. This unique funding removes the financial barrier from pursuing a claim.
Check out the financial growth section of our blog for more tips to guide you to financial security.