Information On Structured Settlements

This is total gross misrepresentation I find in favor of the plaintiff, myself! (Photo credit: Alin S)

Structured settlements have been around for quite some time now, decades even. Today, it has again risen to popularity as a settlement option in cases. It is usually the type of settlement that workers and employees receive as compensation for work-related injuries and health problems. Having complete understanding of structured settlement is a must for every yearning claimant.

A structured settlement is designed to allow periodic payment of a claimant until the total amount of settlement funds he is entitled to is depleted. And it could serve several functions to both the claimant and the paying party. First of all, a structured settlement grants the paying company the option of not have to pay all at once. A one-time settlement can be damaging to the funds of their funds. Second, a structured settlement gives a claimant the advantage of receiving money as scheduled. It can help a claimant take care of his financial needs. Lastly, a claimant can also have the remainder of his settlement cash transferred to an heir in case he dies before their maturation.

In general, there are two types of structured settlements. The first and most common kind is the basic financial arrangement wherein the claimant is set to receive part of the settlement in a certain period. The amount of money and how often he receives it is determined by the terms of the settlement. The less common option is insurance annuity payments. Under this setup, the paying party is expected to purchase life insurance annuities in behalf of the claimant. Payment for insurance will still be periodic.

The period at which structured settlements are complied solely depend on the agreement. In some cases, a claimant should be paid at certain times of the year. A claimant may also be paid annually or every few years. The schedule is again determined by the terms agreed upon in a structured settlement.

A structured settlement has its pros and cons. Receiving frequent payment can be a good option for claimants, especially those who can’t handle large amounts of money. The taxes are also significantly reduced with them. During pressing times however, the money received through a structured settlement may not be enough. In cases like these, selling structured settlements becomes an option. Selling structured settlements can help claimants acquire a large lump sum which they can use to help them through trying times. Some claimants also find it unfair to receive small amounts of money over time which is why selling structured settlements becomes a reality to them.

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