How are mesothelioma settlements paid out?

Getting a mesothelioma settlement can feel like winning the lottery - but how exactly does the money get paid out? Let’s break it down in a way that makes sense.

What is a Mesothelioma Settlement?

Mesothelioma is a deadly cancer caused by exposure to asbestos. When people develop this disease after being exposed at work or elsewhere, they can file lawsuits against the companies responsible. If successful, they receive financial compensation called a “settlement.”

These settlements are meant to cover medical bills, lost wages, and other damages from the illness. The amounts can range from tens of thousands to millions of dollars, depending on the specifics of the case.

How Settlements Get Paid Out

Mesothelioma settlements don’t arrive in one lump sum payment. Instead, they are typically disbursed through a structured settlement.

Structured Settlement

• The full settlement amount gets invested upfront by the defendant’s insurance company or a third-party firm.
• The plaintiff (the person with mesothelioma) then receives tax-free payments from this investment over time.
• Payments can be monthly, annually, or on another set schedule.

This setup provides long-term financial security. But some plaintiffs prefer getting their money sooner through a lump-sum cash out or other options their lawyers can explain.

3 Surprising Mesothelioma Settlement Facts

1. Deferred Lump Sums: Some structured settlements delay a portion of the money for years, then pay it as a future “lump sum.” This allows the invested funds to grow over time.

2. Medicare Set-Asides: Part of a settlement may need to be set aside to pay for future Medicare-covered medical costs related to the illness.

3. Secondary Exposure Cases: Family members exposed second-hand to asbestos from a worker’s clothes have also received settlements for developing mesothelioma.

The payment process can seem complex, but experienced mesothelioma lawyers guide clients through it. With the right plan, settlements provide crucial financial relief.

Learn More

• Asbestos Trust Funds: Special bankruptcy trusts that also compensate mesothelioma victims.
• Mesothelioma Lawsuits: The legal process for filing claims against negligent companies.
• Mesothelioma Treatments: Exploring emerging therapies that settlements can help cover.