Is a Structured Settlement Right for You?

Weighing the pros and cons of a lawsuit versus structured settlement is one of the best ways to understand the option that would benefit you best.  Sometimes being able to look at details on paper makes the decision-making process easier.  Is a structured settlement right for you?  We believe with the information in this checklist you will have the ability to make an educated decision.

Weighing the pros and cons of a lawsuit versus structured settlement is one of the best ways to understand the option that would benefit you best.  Sometimes being able to look at details on paper makes the decision-making process easier.  Is a structured settlement right for you?  We believe with the information in this checklist you will have the ability to make an educated decision.

Trying to determine if a structured settlement is right for you does not need to be a long, drawn out process.  Instead, considering the things listed below you would end up feeling 100% confident that you made the choice that is going to benefit you in the short and long-term.

Attorney Assistance

   
Attorney Assistance – One of the first things is to secure a qualified and reputable attorney to assist.  Now, the attorney working with you on the lawsuit for your injury case should be able to provide all the guidance and insight needed but if at any time you feel uncomfortable, make sure you have good legal representative.  This professional would not only help you make good decisions but also work within the court system and other attorneys during the settlement agreement process.

One of the best options would be to work with an attorney who specializes in injury claims due to negligence or misconduct, as well as someone with expertise in the insurance sector.  Since a structured settlement is actually a type of insurance policy, having one attorney with experience in both fields would give you a huge advantage.  Even better, choosing an attorney with insurance experience who sets up structured settlements on the client’s behalf but without advertising that the annuities are being purchased from his or her own company is invaluable.

Life Expectancy

While no one wants to think about death, your life expectancy would be a key factor to consider.  Being logical, if you are elderly, suffered tragic injuries that are expected to shorten your life, or you have been diagnosed with a terminal illness, the answer to the question, “Is a structured settlement right for you” is probably yes.  Remember, lawsuits of this nature often draw out for years and if your life expectancy were short, the case might be won or loss after passing on.

Now, even with a short life expectancy, if you chose a structured settlement but passed away prior to full payoff, the assigned beneficiary would start receiving payments on your behalf.  Keep in mind that some types of structured settlements do not provide the opportunity to choose a beneficiary so in a situation such as this, it would be imperative to know if you could or could not choose a beneficiary.

High Commission Rates

For many insurance companies, annuities are extremely profitable so prior to making any decision about choosing a structured settlement you want to understand the amount of commission being charged.  In this case, the goal would be to go with a structured settlement but only if the insurance commission does not swallow up a large portion of the principal amount.

Financial Needs

Finally, to determine if a structured settlement is right you, think about expenses that would be paid and the urgency of those payments.  If you have high interest credit cards, need to pay for your child’s college tuition, you want to lower the monthly mortgage payment by paying down the loan, or you have experienced some type of emergency since being injured and need money quickly, the yes, a structured settlement is right for you.  As mentioned, because a lawsuit can take a long time to close, these types of expenses would go unpaid.