You have been into some kind of accident and now suffering from a personal injury lawsuit, don't worry Advance Settlement funding has got your back. I am sorry for recalling that hard time, but it is important to let you know that what Advance Settlement is about.
What is Advance Settlement Funding?
This is an essential question. In simple words, Advance settlement funding is the fund given to you by some third-party company to help you back up your injury lawsuit so that you won't settle for less.
With some beauties and uglies on the side, Advance Settlement Funding can help you out. You are new to injury lawsuits and funding? Well, it is estimated that an estimated injury lawsuit can take around 18 months. That is so much time, right? During that time, you would be covering your medical expenses, corporeal expenses, the salary you would be missing in case of severe injury, all these with a lot more. So, it is okay to pursue Advance settlement funding also known as Pre-settlement funding.
How Does Advance Settlement Work?
The working method is different with different companies but basically, it is as follows. When you will contact that company first, they will estimate the total amount of money your lawsuit settlement can get you. Secondly, after estimation, they will offer you about 15 to 20 percent of your settlement as an advance. It is important to note that it depends on the amount of settlement and their rate of interest. So, the advance fund, what does it depend upon? We will discuss the dependencies later, but first, let's discuss what a non-recourse fund is?
It’s a non-recourse advance:
Let’s say if your lawsuit's settlement, unfortunately, goes unsuccessful, or in any case, there is no reward for you, so what then? What about all the advances that you got from that third-party company? Will you have to pay them back? The answer is no. You won't have to give them a dime if your case goes unfortunate. This is something they will tell you themselves when you will visit them or contact them. For your ease of mind, you can ask them yourself. And that is the most beautiful thing about Advance Settlement Funding.
Don’t Settle for less Benefit:
Along with many of the benefits offered by Advance Settlement Funding, the most important one is “Don’t settle for less”. It can get you the most out of your lawsuit, because it will fund you up, for a specific amount of money. Or in other words: it will help you fight the insurance company back when they will want to pay you less than possible. In reality, the insurance company will wait for you till you empty your saving account and so that you will settle for less. But that's when the Advance settlement comes into action to save the day. So, let’s talk about another essential aspect:
How much money can you get?
We are back to the dependencies part. I wish there was a simple formula I could tell you so that you could calculate it but there is not. The amount of money the funding will offer you depends upon variable factors, that are;
The synonyms are Accountability or responsibility. It will solely show then who was at fault or in other words at what percent you the ____ and defendant are at fault, so they could measure the total amount of settlement.
The Medical Expenses:
At this age, the company will measure the medical expenses when you were admitted there. They will take several facts into consideration, which are; The type of medical assistance given to you, what procedures were followed to help you out.
Now it also depends on the future medical expenses. Let’s say if your injury is severe or the treatment is undone, so in that case, they will raise your advance fund a little bit.
Your Wage Loss:
Meet another fact, that is your wage loss. How much income did you lose when you were admitted to the hospital or couldn't continue to work? Another thing they will do is calculation of your future income too so that you could face less and less frustration.
Now, this is the most important dependency fact of pre-Settlement funding. The amount of advance you will be getting stronger on the amount of insurance you should be getting or what is the ideal amount.
Some of the other dependencies are also geographical location etc.
I know what you’re thinking; is a broker really important? For most of the cases no, but for some Yeah! But let’s first describe What is a broker? A broker is a person who would seek advance funding companies for you until he finds you a company who is offering the amount of advance you are pursuing.
But it is likely, that you will find that specific advance giver company on your own. So, there is no need for a broker, but if things go sideways, just know the broker is there for you. A broker works with many funding companies and yeah! Will charge you according to your agreement.
Another thing that the broker would do for you, is go through the agreement process. But it is really important to know the agreement in detail so that you won't get extra frustration in the future.
I hope now you have a keen idea of what advance settlement funding or pre-settlement is. Just to keep you on track, you should also give concentration on the agreement form you will be signing with them. As different companies have different rates of interest and rates of funding.