Being unable to continue your job means mental and physical trauma, which, in many cases, is devastating. But perhaps the most disturbing factor is facing financial hardship.
Having a personal injury – whether sustained in a public area or at work – often results in a financial toll that can have a dramatic effect on your household. It may come from…
- Medical Expenses: For serious injuries like a knee replacement operation, these expenses can pile on fast. The bills along with your reduced or lost earnings can cause extreme financial distress.
- Loss of Property: In some cases of personal injury, like a car accident, you may also lose some personal property. This could be electronics, clothing, or meaningful property. Insurance may cover some expenses, but going without expensive personal property like an automobile can put a severe strain on your financial health.
- Loss of Future Earnings: With serious injuries, the working life of the victim may change completely. You may not be able to perform key functions of your work. This can alter your career path and how much you earn. You may need to re-enter college or accept low-paying work.
Your overall situation may vary but the general premise holds regardless of the severity of your personal injury.
Financial Stability for Personal Injury Victims
Fortunately, there are ways to protect your financial health during a personal injury case. Here are your options:
- Personal Injury Law Firm
Mike Pines states that a personal injury attorney can give you personalized attention and understand the specifics of your injury to craft a compelling case to battle for the best outcome. The legal processes can be very confusing at times, but an experienced personal injury lawyer will save time by guiding the victim through the process. Whether it’s a slip and fall injury, or an injury caused by someone else’s wrong-doing, this option can help you get the most out of your personal injury settlement.
After a personal injury, you and other members of your family may have to live on less each month. While you are eligible for permanent disability, temporary disability, or workers’ compensation, these options will cover only a portion of your full-time income. In such a scenario, you can consider reasonable downsizing to protect your financial wellbeing. Cut out luxuries, like subscription services (music, magazine, podcast, etc.) and entertainment (cable, dine outs, etc.). The cancellation fee may give you second thoughts, but it is still less than what the expenses would be in the long-run. In addition, there may be clauses that make you eligible for no cancellation fee.
- Avoid Retirement Account Cash Out
You and your family could rely on emergency savings to survive for some months (longer if you cut out excess and downsize efficiently). Those who don’t have emergency savings will consider the idea of taking out a personal injury loan or taking funds from a retirement account. But these options aren’t fruitful and should be avoided. Personal injury loans have high interest rates, and withdrawing early from a retirement account could result in a tax penalty. A better option would be short-term loans; they can give you enough financial stability to manage your household until you regain financial health through a personal injury settlement.
These tips will remove a great deal of stress as you recover physically, emotionally and financially.