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. 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. 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. Since the people who win personal injury cases often face different financial difficulties, this type of payment comes with a great deal of flexibility; the entire amount can be paid on your terms provided it is not the entire amount is not disbursed upfront.
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 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.
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. But one thing you should remember is that the original settlement cannot be restructured regardless of what changes in the future.
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. Now you can make the best decision for you thanks to this important information.