Structured Settlement Options
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After filing a lawsuit because of an injury sustained from a negligent party, your attorney starts the process but then, he or she starts talking about structured settlements. While you may get an overview of what this means, it is common for people to feel confused or overwhelmed. To clarify some things, we have provided some structure settlement options so when the time comes, you would have a much better understanding of the things being shared by your attorney.
After filing a lawsuit because of an injury sustained from a negligent party, your attorney starts the process but then, he or she starts talking about structured settlements. While you may get an overview of what this means, it is common for people to feel confused or overwhelmed. To clarify some things, we have provided some structure settlement options so when the time comes, you would have a much better understanding of the things being shared by your attorney.
As we all know, making decisions from a standpoint of knowledge is essential. Unfortunately, many people depend solely on information being provided by the attorney and while the information would be accurate, the problem is that without knowing about structure settlement options on your own key questions could be overlooked. By taking time to learn all the details, your chance of receiving the highest amount of money and the best terms is more likely.
To begin, money coming from a structured settlement via a broker offers financial relief when facing a challenging situation. No matter the reason for entering into this agreement, this type of settlement can be highly beneficial. Keep in mind that money associated with a structured settlement is governed, which means an order from the court is required before any payments to you are made. With this, you would have consistent income, which is beyond helpful when unable to work because of the injury.
When talking about structured settlement options, you have a variety of payout possibilities. The goal is to determine which schedule would work best for your situation since each option is unique. Then, based on specifics for you and your situation, your attorney would provide advice on structured settlement options accordingly. For instance, options being considered would depend on things such as your life expectancy, the degree of medical bills and amount of living expenses, how much financial assistance you would need immediately versus long-term, and more.
Although a variety of structured settlement options exist, the following are those most commonly used.
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Monetary Distribution over a Period of Time
Choose to have the payments spread out over a period of time, which would consist of receiving money every month on a set date and in a predetermined dollar amount.
Sell Structured Settlement Payments to a Company or Broker
Sell all of the structured settlement to a company that specializes in buying this type of payout. In return for the lump sum of money paid to you at face value, you would pay the company fees for their service.
Sell a Portion of the Settlement while Still Receiving Scheduled Payments
Sell some of the structured settlement payments to a funding company for a larger sum of money over the amount of your scheduled payment. In this case, you could choose this option several times a year. In addition to these payouts, you would continue receiving the scheduled monthly payments on the scheduled date and for the determined amount.
Understanding the different structured settlement options would allow you to voice your preference with the attorney from the start. Of course, things can, and do change but at least you would have some direction. As mentioned, the exact option chosen is based on a person-by-person case. However, the goal with a settlement of this type is to ensure you have consistent income for the remainder of your life.
If you have interest in selling all of the payments, the amount of money received would be quite large. One benefit is that with this, you could pay off bills, invest, send a child to college, start a business, etc. However, of all structured settlement options you want to be careful when doing this in that for many people, having a lot of money readily available leads to over spending and potential financial risks.
