Everything You Should Know about a Structured Settlement and when it is Necessary
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. Whether you are involved in an auto accident or injured at work, most of these cases are usually settled through negotiations with the insurance companies while a few reach the court as shown here. 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. It is the great deal of flexibility that comes with this time of arrangement that should prompt you to choose it; you can have them pay a huge sum upfront to help cover the debts you may have accrued over time while the rest is paid in small but equal installments.
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. There are several factors that go into determining whether structured settlement is a good idea when you have won a personal injury case. Annual payments are usually suitable for people who are unable to go back to work because of the injuries they sustained; they can effectively replace your monthly salaries for years.
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. As you can see, choosing structured settlement means you will enjoy financial security so as long as the settlement period continues. You never know what may happen or change in the future but the structured settlement agreement will not be changed.
Since the agreement can never be changed regardless of what happens, the only card you are left to pay is to sell the original agreement for a huge sum of money although it may mean substantial losses on your part. If you have been undecided on structured settlement, this information might help you make the right choice. Discussed above is everything you need to know about structured settlement and when it may be a good idea for you.