What do advanced payments in a settlement aim to offset?

Advanced payments in a settlement are aimed at offsetting costs incurred by the claimant. These payments help alleviate immediate financial burdens that a claimant may face following an incident, such as medical expenses, repair costs, or any other out-of-pocket expenses that arise due to the claim. The intention behind these payments is to provide support to the claimant while they navigate the claims process, ensuring that they do not suffer financially as they await the final settlement outcome.

While the other options mention various financial aspects related to litigation or settlements, advanced payments specifically address the direct costs that claimants often need to cover out-of-pocket. This understanding helps ensure that claimants can manage their immediate financial needs effectively while their claims are still being processed.