What Are the Insurance Payouts for Wrongful Death Claims?

By Chris Dixon


When a person dies, the surviving family members of the victim have the right to file a wrongful death claim to recover compensation for the victim’s pain and suffering. If the case wins and recovers a settlement from the negligent party’s insurance company, compensatory damages can be dispersed in many ways for wrongful death claims. If you have filed a wrongful death claim for a family member’s death and need more information about insurance payouts, an experienced lawyer can explain the insurance payout process for wrongful death claims, file a compelling claim if your case is eligible, and offer support during this emotionally and mentally trying time.

Wrongful Death Settlements

A wrongful death settlement can be recovered by the immediate family members of a victim by filing a wrongful death claim. When filing a wrongful death claim for a family member’s death, it’s crucial to have a lawyer by your side to recover the maximum amount of damages. An experienced lawyer can make sure that you have a compelling claim for recovering damages, are seeking a realistic amount of compensation, and ensure that the victim’s rights are protected from the negligent party and their insurer.

It’s difficult to put a price tag on a human being’s life, but recovering compensation for a family member’s death can lessen the financial stress of the situation. Insurance settlements are reached in one of two ways; negotiation and mediation by a lawyer outside of court, or by filing a lawsuit and defending your wrongful death case in front of a judge and jury. The method that is used varies in each case, but consulting a wrongful death lawyer about the accident quickly determines which approach would yield the best results and offers a sense of support knowing that an experienced lawyer is on your side.

How are Insurance Payouts for Wrongful Death Claims Determined?

Wrongful death settlements can vary greatly, but generally include a mix of economic and non-economic damages. Economic damages typically include medical bills that stemmed from the accident before the victim’s death, property damage caused in the accident, loss of income caused by the deceased’s death, and funeral and burial expenses. Non-economic damages, on the other hand, are damages that stemmed from the accident that don’t have a price-tag such as mental, physical, and emotional distress, and loss of consortium. Insurance payouts for wrongful death claims are calculated by adding up economic damages and multiplying this total by 4 or 5 to reach a settlement that includes compensation for non-economic damages.

The amount of an insurance payout for wrongful death claims is greatly influenced by the initial demand letter that accompanies an insurance claim. If a demand letter isn’t detailed and compelling, this could increase the risk of accepting a lower insurance settlement. Hiring an experienced wrongful death lawyer to represent your case ensures that your claim is supported by a powerful demand letter and provides you with a sense of your case’s worth so you won’t accept a mediocre settlement.

How is an Insurance Payout for Wrongful Death Claims Awarded?

If a wrongful death claim is successful, compensation can be dispersed in a number of different ways, but the most common methods include lump-sum and structured settlements. If a victim’s surviving family members accept a lump-sum settlement, compensation for economic and non-economic damages are awarded up-front and dispersed all at once. Lump-sums are beneficial because they allow out-of-pocket expenses from the accident to be paid immediately, but the downside of this method is that lump-sums can be difficult for some to set aside and handle responsibly. However, if lump-sums are handled properly, this can provide the victim’s family with funds to put towards future expenses caused by the accident.

With a structured settlement, compensatory damages are disbursed on an ongoing basis, whether it’s monthly, bi-monthly, yearly, or bi-yearly. Structured settlements provide a victim’s surviving family with the safety net of a steady income and are often easier to manage than lump-sum settlements. The downside to structured settlements is that they aren’t as flexible as lump-sum payments, waiting for the next scheduled payment can be difficult, and it can be nearly impossible to stop structured settlement payments and receive the remaining compensation in a lump-sum. If you are unsure which route you and your family should go when accepting an insurance payout for a family member’s wrongful death case, an experienced lawyer can recommend the option that they think would be most beneficial for your case.

How Can a Lawyer Help Recover an Insurance Settlement For My Wrongful Death Claim?

If you are considering filing a wrongful death claim for a family member’s death, it’s essential to consult a wrongful death lawyer about the case and get information on the options available for recovering compensation. An experienced lawyer can assess the case’s strengths and weaknesses and offer personalized legal advice to benefit your case. If you need a lawyer to represent your family member’s wrongful death case, contact the Dixon Injury Firm today to discuss your case. Our Wrongful Death Lawyers are passionate about helping clients recover compensation for their loved one’s pain and suffering and making sure that the surviving family members of victim’s fully understand the factors that are involved with insurance payouts for wrongful death claims.

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