This all depends on the situation and the strategy that your lawyer advises you to follow. In some situations where you should file a lawsuit right after your loved one has died and use that as leverage in settlement negotiations. Other times, you may want to file an insurance claim first and see if you can reach a settlement agreement. You always have the option to file a lawsuit if the insurance company does not pay you what you legally deserve.Even if you file a lawsuit, you can continue to discuss a potential settlement agreement. In fact, most wrongful death lawsuits will eventually settle and not go to trial. In many cases, the defendant does not want their case in the hands of a jury when someone has died. Juries can sympathize with the grieving family and hit the defendant with a large verdict. In the end, your attorney will give you advice about the right time to settle and whether they believe that you are receiving a fair settlement offer.