Structured Settlement – A Few Things You Must Know
Well, not so often you come across this term ‘structured settlement’. But there are fair chances of hearing this word if you are fond of browsing finance news late night; sometimes quickly scanning through various channels, you listen to the phrase like ‘it’s your money’, ‘’get an immediate access to your money’, and ‘cash in your structured settlement and use your money now’.
Are you still wondering what is structured settlement?
Simply put, it is a type of annuity that ensures a payout from claims, such as personal injury, worker compensation and lottery winning, in a lump sum amount with some tax benefits. The owners of structured settlement typically receive scheduled tax-free payments as per the terms and policies, but they can also reimburse lump-sum buyouts.
Top 3 reasons why people come by structured settlements
Personal Injury – A litigant receives a big jury reward or settles a claim for a big amount, and the amount is divided into monthly or annual payments with the passage of time. Receipt can use these payments to meet his or her medical expense or other expenses.
Workers Compensation – Structured settlement, SS as it is mostly called, is opted to compensate the workers who get injured while at the workplace during their recovery time.
Wrongful Death – SS is most frequently chosen way to settle the claim of a wrongful death, which is mostly claimed by the family member of the dead individual.
Top Benefits of selecting ‘SS’ as your settlement option
- The amount received as a structured settlement from a insurance company is tax-exempted, so ensures great saving
- Receipt can schedule payment for almost any length of time. They can get started instantly, get delayed or can embrace the future lump-sum payouts
- SS payments do not count on financial markets or on the economic conditions of the country. The insurance company is bound to release the payments as per the annuity contract.
- In case the receipt meets a premature death, the beneficiary person can continue getting the payments and benefit from tax exemptions as well.
- Instead of getting money at one go, if you can get it in installments then it helps you manage the money in more effective manner; and you need not to answer close friends and relatives seeking your financial help.
- The receipt of the SS doesn’t need to go to court; the whole matter is solved out of the court, so there is no expense of hiring a lawyer or visiting the court again and again.
Who are qualified for SS?
SS is valid for many different kinds of injury cases irrespective of the amount involved. It applies to following cases:
- Mentally disabled or minors
- Long-term medical needs
- Severe personal injury that shorten life
- Temporary or permanent physical disabilities
- Spouse and/or dependents’ survival in a death case
These days, structured settlements are also used in cases of personal damages such as inappropriate termination, discrimination, divorce, property loss, physical abuse and environmental damage.
Unquestionably, structured settlements are a key to financial security. However, the situation varies from one person to another, and thus it is wise to seek advice from the professionals who are expert in designing SS.
Take the first step to build a safe and secure future for you and your family today – find the best consultant in your area who specializes in structured settlements!