Structured Settlements are already the most used option in the settlement of legal cases involving medical injuries. Every year, tens of thousands of Americans are injured, and pursue legal remedies. The cause of the injury varies greatly, from slip & fall, to auto accidents, to workplace injuries, and more.
So Why Are Structured Settlement So Popular?
Perhaps it is because both sides have something to gain. The Defense loves to settle a case like this. It used to be that the Defense had to have their client, usually an Insurance Company, pay the monetary-award in full. Now, if they accept the structured settlement, they can purchase an Annuity for the full amount, but at a discount. A one-million dollar settlement, can now cost the Defense around $600K, and that is quite a savings.
The Claimant is happy, because he/she is going to receive a fixed-payment for a fixed amount of time. This means a steady income-stream that is secured by a top rated Insurance Company. They can even design the settlement in a variety of ways. Perhaps the claimant would like a lump-sum up front, followed by the periodic payments. They can even schedule future lump-sums to meet future milestones, such as the kids going to college, or to replace medical equipment that becomes outdated.
The Lump-Sum Becomes More Attractive As Time Passes
The happiness fades when the Claimant realizes that due to the down economy, they are struggling to pay the bills. They don’t realize that they are one of the lucky people that have a settlement that can be turned into a lump-sum of cash. This is quite a break, when you need some funding to lower the stress level in your life.
All you have to do is get a hold of a well-known structured settlement company, and ask for a Quote on your settlement. What a secondary structured settlement factoring comapny will do, is immediately assign a consultant to your account. They will tell you what documentation they need to see, how much money you can expect to get, the turn around time, and you will get an idea of what is involved in transferring your current future payments as in the court process for exchanging future payments into a large lump sum.
The lump-sum payment is yours to use as you see fit. Check with your accountant or the IRS for the tax ramifications and benefits. Catch-up on your mortgage payments, put the kids through college, or even invest in a business. The most important thing is to not do anything unwise. This is your chance to improve your’s and your family’s lives. Don’t waste it!