Everything You Should Know about a Structured Settlement and when it is Necessary
Being the victim of a personal injury, fatal or non-fatal is the last thing anyone wants, but that is not always the case as highlighted here by the significant increase in the number last year. 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. 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.
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. 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.
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. But one thing you should remember is that the original settlement cannot be restructured regardless of what changes in the future.
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. 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. Use this comprehensive guide to gather all the relevant information about structured settlement.