What is a Structured Settlement and when is it a Good Idea?
If you or someone you know has suffered a work-related personal injury or illness recently, they are joining the over two and a half million individuals who suffered the same as highlighted here! Even with the massive increase in these numbers recently, only a handful of the cases end up in court as most are resolved through negotiations between insurance companies on this website. 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. To know what structured settlements are and when they make sense, read more now!
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. If you are to be compensated through structured settlement, the first thing you should know is that the payments can be customized to meet your unique needs; you are allowed to ask for a larger first payment while the rest is divided equally over time.
When you have won a personal injury case and it is time to be paid you can choose the payment option that works for you with the help of a structured settlement calculator. 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. For instance, this type of payment is suitable to a person who has lost his or her job due to a work-related injury because it can replace the salary 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. 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. You never know what may happen or change in the future but the structured settlement agreement will not be changed.
For someone with a structured settlement looking to get a substantial amount of liquid capital quick, selling the original agreement is always an option. 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. Discussed above is everything you need to know about structured settlement and when it may be a good idea for you.