Being the victim of a personal injury, fatal or non-fatal is the last thing anyone wants, but that is not always the case as highlighted here by the significant increase in the number last year. 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. When you win your case or reach a settlement agreement, you get payments that come as structured payment as indicated on this page. Keep reading to learn everything you should know about structured settlements.
If you win a personal injury case, you will be paid the settlement amount in small installments over a period, which is what is referred to as structured settlement. 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.
If you are negotiating a structured settlement, you can always sit down with a professional to help you find the payment option that best suits your needs because there are plenty. If you are thinking of choosing structured settlement as the mode of payment, several important factors have to be considered before arriving at a decision. 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. Structured settlements often make sense for people who are interested in their financial stability over a long-term period; the longer the settlement period continues, the ore your situation is likely to change. But one thing you should remember is that the original settlement cannot be restructured regardless of what changes in the future.
Since the agreement can never be changed regardless of what happens, the only card you are left to pay is to sell the original agreement for a huge sum of money although it may mean substantial losses on your part. If you have been undecided on structured settlement, this information might help you make the right choice. Use this comprehensive guide to gather all the relevant information about structured settlement. Read more here...