How are future damages calculated in a personal injury claim?

Future damages compensate you for losses and expenses you will incur after your case resolves. They typically include future medical expenses (surgeries, therapy, medications, medical devices), future lost wages and diminished earning capacity, future pain and suffering, and future costs of long-term care or home modifications. Calculating future damages requires expert testimony. A life care planner projects the medical and care costs you will need over your lifetime based on your diagnosis and prognosis. An economist or vocational expert calculates the present value of future income losses, accounting for inflation, work-life expectancy, and your reduced earning capacity. Life expectancy tables and actuarial data are used for long-term projections. These amounts are typically discounted to present value since a lump sum received today is worth more than the same sum paid annually over decades. Future damages often represent the largest component of high-value personal injury settlements.