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. 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.
First you have to know what structured settlement is, which is where you are offered a series of small payments by an insurance company which you can know more about if you click here. 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.
If you are negotiating a structured settlement, you can always sit down with a professional to help you find the payment option that best suits your needs because there are plenty. 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. 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.
You should consider tax implications when you are trying to figure out the payment method to use when you have won a personal injury case and ready to be compensated; because a big lump of settlement of punitive damages can cost you a lot in taxes, you get a pass on compensatory damages. 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.
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. If you have been undecided on structured settlement, this information might help you make the right choice. Now you can make the best decision for you thanks to this important information.