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. When you win your case or reach a settlement agreement, you get payments that come as structured payment as indicated on this page. Keep reading to learn everything you should know about structured settlements.
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.
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 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.
By agreeing to be paid through structured settlements, you will be paying taxes of smaller amounts compared to someone who decides to get the entire amount in one lump sum settlement. 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. Receiving structured payments means long-term financial stability, however, before you get into agreement, you should know that the original agreement cannot be change regardless of the challenges you face.
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. Discussed above is everything you need to know about structured settlement and when it may be a good idea for you.