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.
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 thinking of choosing structured settlement as the mode of payment, several important factors have to be considered before arriving at a decision. 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.
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. 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. You never know what may happen or change in the future but the structured settlement agreement will not be changed.
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.
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