A Structured Settlement, is defined as an extensively discussed and thoroughly calculated amount which is received by the person who invested or had an insurance firm due to the reason of any kind of personal injury claim, therefore, receiving the gigantic amount of cash in a scheduled periodic time period in small amounts rather than a big payment at once or a lump sum.
What is the purpose of a structured settlement?
These settlements are the most widely used and accepted kind of defense mechanisms for the past 3 decades and have been benefiting the person ought to have a personal injury or a wrongful death claim which needs to be fulfilled, structured settlement can pay you huge amounts of cash in a systematic manner and will help you in regard to an injury, accident or an hour of financial crisis.
How would you have structured the settlement?
The process of issuing a structured settlement is a complicated one that results in a simpler, easier solution for someone who wins a case. The issuing, however, still remains a case.
If in a court preceding a plaintiff is determined to be owed money, a structured settlement can be considered instead of a lump sum. Both sides work with a trained consultant to determine the amount of money and the needs of the plaintiff. The consultant then uses the money to purchase an annuity from a life insurance company. Which can help save someone from a severe financial crisis.
The annuity is managed by a life insurance company separate from the at-fault party. The money is thus protected from market fluctuations, changes in the stock markets, recessions and all the other financial risks and dangers which are typically associated with investments. The plaintiff, the person harmed, simply receives a scheduled series of payments for a set amount of time. The person needs to pay the amount to the party at all costs in order to avoid the legal process and fill the injured party’s need as upon the allegations of their claims.
What is a structured settlement examples?
It’s a solution that many people take advantage of: Nearly $6 billion in new structured settlements are issued each year, according to the National Structured Settlements Trade Association. This is a typically healthy and helpful solution in avoiding all kind of financial disasters and at the same time, helping the family or the victim struck with injury or death cope with several issues ranging from medical treatment bills to funeral costs if the death of the individual occurs in case.
The structured settlement issuing companies function in such a manner that help protect owners as well. Structured settlements don’t affect an individual’s ability to qualify for other forms of aid. Which means, if someone is set to receive a settlement, the money they receive from it does not affect their ability to qualify for Medicaid, Social Security, and other disability benefits. Which can further benefit the individual.
Moreover, these structured settlements are protected and shielded from all kinds of taxes and market fluctuations, the reason why many lawyers prefer structured settlement rather than a lump sum.