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. 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!
In a structured settlement, the person who wins the case is paid offered a series of small payments over time by either a business or the insurance company. 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 thinking of choosing structured settlement as the mode of payment, several important factors have to be considered before arriving at a decision. 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.
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. As you can see, choosing structured settlement means you will enjoy financial security so as long as the settlement period continues. But one thing you should remember is that the original settlement cannot be restructured regardless of what changes in the future.
Since the agreement can never be changed regardless of what happens, the only card you are left to pay is to sell the original agreement for a huge sum of money although it may mean substantial losses on your part. If you have been undecided on structured settlement, this information might help you make the right choice. Discussed above is everything you need to know about structured settlement and when it may be a good idea for you.