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. By reaching an agreement with the insurance company or reach a settlement agreement highlighted on this website, the type of payment you will receive is referred to as structured settlement. You will discover more about structured settlements in the following article.
In a structured settlement, the person who wins the case is paid offered a series of small payments over time by either a business or the insurance company. 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. 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.
Another factor to consider when you are trying to figure out if structured settlement is suitable for you is tax implications; most people who choose to be paid over time incur gentler taxes compared to those who choose to go for a lump sum upfront. Structured settlements often make sense for people who are interested in their financial stability over a long-term period; the longer the settlement period continues, the ore your situation is likely to change. Receiving structured payments means long-term financial stability, however, before you get into agreement, you should know that the original agreement cannot be change regardless of the challenges you face.
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. With the information on this guide you have the answers to all your questions and you see why structured settlements are preferred by most. Discussed above is everything you need to know about structured settlement and when it may be a good idea for you.