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! 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.
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. 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 thinking of choosing structured settlement as the mode of payment, several important factors have to be considered before arriving at a decision. 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.
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. 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. Use this comprehensive guide to gather all the relevant information about structured settlement.
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