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. 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. When you win your case or reach a settlement agreement, you get payments that come as structured payment as indicated on this page. To know what structured settlements are and when they make sense, read more now!
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. 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.
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. Since structured settlement can on for as long as twenty years of more, it is the perfect way to cover bills and other expenses if you the injury you sustained prevents you from working.
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. With the information on this guide you have the answers to all your questions and you see why structured settlements are preferred by most. Use this comprehensive guide to gather all the relevant information about structured settlement.