If you look at the statistics displayed on the this website, you will see that the number of non-fatal and work-related illnesses has been increasing significantly in the last few years. 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. 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. You will discover more about structured settlements in the following article.
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. If you are to be compensated through structured settlement, the first thing you should know is that the payments can be customized to meet your unique needs; you are allowed to ask for a larger first payment while the rest is divided equally over time.
The flexibility of this payment method is often displayed by the different payment options available for clients to choose from; it is all about finding a schedule that works for you. If you are wondering whether a structured settlement is the best option for you, the answer to the questions depends on more than one factor. 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. As you can see, choosing structured settlement means you will enjoy financial security so as long as the settlement period continues. You never know what may happen or change in the future but the structured settlement agreement will not be changed.
For someone with a structured settlement looking to get a substantial amount of liquid capital quick, selling the original agreement is always an option. With the information on this guide you have the answers to all your questions and you see why structured settlements are preferred by most. Use this comprehensive guide to gather all the relevant information about structured settlement.
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