No amount of money can truly make up for the loss of a loved one. But obtaining a wrongful death claim settlement can provide surviving family members with much-needed financial support. A common question that arises when dealing with wrongful death cases is how much of a settlement amount a surviving spouse, children or other family members can receive?
While wrongful death claims tend to involve large settlements, the truth is there is no exact figure. No two wrongful death lawsuits are the same, so no average wrongful death settlement amount applies to these types of cases. However, understanding how settlements work can make it easier to navigate the entire wrongful death lawsuit process.
Seeking Damages
Wrongful death lawsuits fall under personal injury claims, which gives surviving family members legal right to pursue compensation for their own losses.
In California, wrongful death settlements typically include both economic and non-economic damages.
Economic damages are monetary losses suffered by family members, including medical bills, funeral fees and lost salaries
Non-economic damages refer to losses that may take an emotional or mental toll on survivors. These damages include pain and suffering, mental distress, and loss of companionship.
Juries take various factors into account when awarding financial compensation, including:
- Decedent’s earning capacity and potential
- Decedent’s character and habits
- Loss of companionship
- Surviving family members’ emotional distress
- Funeral and burial costs
- Medical expenses
Factors That Can Affect a Wrongful Death Settlement Amount
Determining the value of a wrongful death claim can be complex. These lawsuits are inherently tied to the deceased’s economic circumstances and seek to compensate for the monetary impact of such an untimely death. Certain elements can affect a family’s potential settlement amount, including:
- Decedent’s age and health
- The deceased’s earning capacity and potential
- Any minor-aged children the decedent had at the time of death
- Ages of minor-aged children
- Surviving spouse’s degree of financial dependence on the decedent
- Circumstances regarding the accident
Wrongful Death Payouts
Wrongful death payouts can vary significantly. The most common options are one-time lump sum payments and structured settlements. Insurance companies are more likely to pay a lump sum all at once.
A structured settlement allows for regular, continuous payments to survivors over months or years. If there is no insurance, a structured settlement allows defendants to pay gradually. However, structured settlement agreement terms cannot be changed after being finalized. That’s why it’s a good idea to have an experienced wrongful death attorney review a settlement agreement before signing and finalizing anything.
Awarding Punitive Damages
Punitive damages play an important role in wrongful death cases. They’re meant to reprimand the defendant and discourage any future similar behavior.
Punitive damages are not automatically awarded in every wrongful death lawsuit. Certain criteria must be met and solid proof showing intentional misconduct or extreme carelessness on the defendant’s part must be presented. Otherwise, the courts will not impose this financial punishment.
Keep in mind that punitive damages are over and above any economic or non-economic damages. They’re an additional layer of financial compensation meant to make sure the defendant feels their wrongdoing.
Filing a Survival Action
Some states, including California, also allow families to pursue compensation through a survival action. This type of case allows the estate to recover damages the victim could have won through a personal injury claim if he or she had survived. This includes money for any conscious pain and suffering the victim endured between the time the injuries occurred and his or her death. It is not meant to recover any financial compensation that the decedent was entitled to receive.
Are Wrongful Death Settlements Taxed?
Wrongful death settlements are not taxable if the amount paid is compensatory. The IRS considers any portion of a settlement that is compensatory — meant to reimburse the family for loss of income, expenses, and pain and suffering — as non-taxable.
If punitive damages are awarded these may be taxable, but attorney fees may be deducted from this amount. That’s why it’s imperative that a settlement clearly states what types of damages the payments are for.
Insurance Coverage Limits and Practices
Insurance policies contain a maximum payout limit, which can dramatically affect the value of a wrongful death claim. This amount is usually the maximum compensation the insurance company can provide, regardless of the actual amount of the damages.
The damages in a wrongful death lawsuit may include compensation for medical bills, funeral expenses and loss of companionship. The policy limit might cover these damages in some cases but not in others.
So, if the defendant’s insurance coverage limit is too low to cover all damages, the surviving family members might need additional avenues of compensation.
An insurance company’s tactics can also potentially influence a wrongful death claim’s monetary value. This may include:
- Offering an initial settlement amount less than the claim’s value.
- Insurance companies can also deny claims based on certain policy exclusions.
Additionally, the insurance company may dispute the extent of damages, questioning whether they should be classified as economic or non-economic. This can directly impact any compensation amounts.
Wrongful death claim attorneys can better understand and explain these company practices. They can also guide claimants in negotiations, increasing their chances of a fair settlement.
⚖️ Recommended Reading: How Long Does it Take to Settle a Wrongful Death Claim?
Why You Should Hire a Wrongful Death Attorney
Too many families accept lowball offers or never try to pursue compensation because they don’t understand the laws or how to file a wrongful death claim.
Consulting with a wrongful death lawyer can help you understand the legal process and maximize your settlement amount. El Dabe Ritter Trial Lawyers understand how insurance companies work. Our experienced attorneys can protect your right to fair compensation through a wrongful death suit and obtain justice for your loved one.
You don’t have to navigate the wrongful death claims process on your own. Chat or call us to schedule a free case evaluation. We are here for you 24/7.