Benefits Of Structured Settlements – There are different types of structured settlements, but all of them center on one very common thing, and that is money distribution. One type of structured settlement involves the process of seeking restitution for injury or illness caused by another person, company or corporation. It is the end result of litigation and/or long courtroom battles. These battles most likely will be awarded a settlement, and the settlement will be structured or tailored to meet the victim’s specific needs.
A structured settlement is simply an agreement between two parties: the one at fault, and the victim. This agreement is negotiated, and once the agreement is reached, a series of payments will be paid to the victim. These payments will either be made monthly, bi-yearly, or yearly and they could last 20 to 30 years; depending on each situation, and the type damage and injury which has occurred to the victim.
The structured settlement payments will begin according to the agreement reached by the two parties involved in the dispute. For example, someone who has been in an automobile accident may be able to receive structured settlement payments from the responsible party to compensate for their injury. These payments should help the victim cope with daily living expenses and medical bills.
Another example of structured settlement is when someone is awarded a large sum of money, and it has to be paid in installments, or scheduled payments. For instance, if you won the lottery, and were receiving a set amount of cash over a period of years this is considered a structured settlement. You negotiated and settled an agreement with the lottery for a specific amount to be paid to you over a set amount of time.
The last form of a structured settlement is a joint survivor annuity. This option is usually considered only by a select group of people who are looking forward to retiring from their current working position or status in life. It is tailored to meet the needs of each individual case and to fit personal needs. The individual seeking the annuity has the option of choosing what amount of coverage they need for themselves and their spouse in the unlikely event of their death. For example, these annuities are usually paid to the individual applying for the annuity, in periodic installments for life. If your beneficiary outlives you, they will also keep receiving the payments long after your death. This form of structured settlement has the potential not only to benefit you and your family, but may offer them peace of mind as well.
One benefit for choosing a structured settlement is the possibility of receiving a stable source of financial income during your lifetime. This could give you a source of security for your future. Another benefit of a structured settlement is the potential of lowered taxation rates on the money you receive, and saving money on taxes should give you extra funds for purchasing basic living necessities.
Whichever option you choose, research the companies and institutions that specialize in these areas, and seek proper advice. In doing so, you should achieve personal financial satisfaction and find the assistance you need.