What is a Structured Settlement and when is it a Good Idea?
If you look at the statistics displayed on the this website, you will see that the number of non-fatal and work-related illnesses has been increasing significantly in the last few years. With millions of accidents occurring annually, insurance companies are always busy trying to help their clients find a suitable solution now after such a tragic accident. Structured settlements is the payment one gets when he or she has won a personal injury case and is to be compensated for the damages. Keep reading to learn everything you should know about structured settlements.
If you win a personal injury case, you will be paid the settlement amount in small installments over a period, which is what is referred to as structured settlement. Since the people who win personal injury cases often face different financial difficulties, this type of payment comes with a great deal of flexibility; the entire amount can be paid on your terms provided it is not the entire amount is not disbursed upfront.
The flexibility of this payment method is often displayed by the different payment options available for clients to choose from; it is all about finding a schedule that works for you. If you are wondering whether a structured settlement is the best option for you, the answer to the questions depends on more than one factor. Since structured settlement can on for as long as twenty years of more, it is the perfect way to cover bills and other expenses if you the injury you sustained prevents you from working.
By agreeing to be paid through structured settlements, you will be paying taxes of smaller amounts compared to someone who decides to get the entire amount in one lump sum settlement. Compared to receiving a lump sum that may be spent on one thing, you are better off with structured settlement where you will be receiving the money for years. But one thing you should remember is that the original settlement cannot be restructured regardless of what changes in the future.
If you decide that you want to invest in a property or need money to cater for medical bills due to unforeseen setbacks, you can always sell your agreement for a lump sum. You are in a position to make an informed decision on whether to go for structured settlement when you have won a personal injury case or not. Now you can make the best decision for you thanks to this important information.